SEBI Notifies FVCI (Amendment) Regulations, 2026: Registration and Fee Framework Shifts to INR

 Introduction

The Securities and Exchange Board of India ("SEBI" or "the Board") has notified the Securities and Exchange Board of India (Foreign Venture Capital Investors) (Amendment) Regulations, 2026 vide Notification No. SEBI/LAD-NRO/GN/309 dated July 3, 2026, published in the Gazette of India (Extraordinary), Part III, Section 4. The amendment further modifies the Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulations, 2000, which were last amended in 2025 vide Notification No. SEBI/LAD-NRO/GN/2025/280.

The amendment is issued in exercise of powers conferred under Section 30(1) of the Securities and Exchange Board of India Act, 1992.

Effective Date

The Amendment Regulations shall come into force on the one hundred eightieth day from the date of their publication in the Official Gazette.

Key Amendments

1. Omission under Regulation 3(3)

Regulation 3(3) has been amended to omit the words "by the fee specified in the Second Schedule and," delinking the fee prescription from this specific regulatory clause.

2. Revision of Fees in the Second Schedule

The Second Schedule to the Regulations has been substantially revised, with fees earlier denominated in US Dollars now converted to Indian Rupees (eligible foreign exchange equivalent). The revised fee structure is summarized below:

Clause	Particulars	Earlier Fee (USD)	Revised Fee (INR equivalent)
Clause (1)	Registration fee	$2,500	Rs. 2,30,000
Clause (2)	Application fee	$100	Rs. 9,000
Clause (5)	Late fee	$5	Rs. 500
Clause (5)	Renewal fee	$150	Rs. 15,000

Additionally, under Clause (1), the timing for payment of the registration fee has been revised. Previously payable "at the time of submission of the Form," the fee is now required to be paid prior to the grant of certificate of registration.

3. Substitution of Clause (6) — Remittance Mechanism

Clause (6) of the Second Schedule has been substituted in its entirety. The revised provision requires every Designated Depository Participant (DDP) to remit fees collected from Foreign Venture Capital Investors, in INR, to the Board as follows:

• Initial registration: Within five working days from the date of grant of the certificate of registration to the foreign venture capital investor, along with details in the format as may be specified from time to time.
• Renewal fees / late fees: Within five working days from the date of receipt of such fees by the Designated Depository Participant, along with details in the format as may be specified from time to time.

Analysis and Implications

This amendment marks a structural shift in the FVCI fee framework, moving away from USD-denominated fees toward INR-based equivalents payable in eligible foreign exchange. Key implications include:

• For Foreign Venture Capital Investors: Fee planning and budgeting will now need to account for INR-denominated amounts, with payment due before certificate issuance rather than at the application stage.
• For Designated Depository Participants: A tightened five-working-day remittance timeline has been codified for both initial registration fees and renewal/late fees, along with a standardized reporting format requirement.
• Compliance Timeline: Given the 180-day implementation runway, DDPs and prospective FVCI applicants have a transition window to align internal processes with the revised fee structure and remittance mechanics before the amendment takes effect.

Conclusion

The SEBI (Foreign Venture Capital Investors) (Amendment) Regulations, 2026 reflect SEBI's continued effort to streamline and rationalize the regulatory fee architecture applicable to foreign venture capital investors, with a clear shift toward INR-denominated compliance and tighter remittance discipline for Designated Depository Participants. Entities involved in FVCI registration and related depository functions should review internal fee-processing workflows ahead of the effective date.