The Securities and Exchange Board of India (Sebi) has streamlined the onboarding process for foreign portfolio investors by permitting the use of digitally signed power of attorney documents. According to reports from CNBC TV18, The Hindu BusinessLine, Devdiscourse, ANI, Rediff Moneynews, ETMarkets, NDTV Profit, and Business Standard, under the revised rule, an FPI can give a Power of Attorney (PoA) to its custodian specifying its address and execute the document by using a digital signature in accordance with the provisions of the Information Technology Act, 2000. The move eliminates the requirement for notarization, apostillisation, or consularization of the Power of Attorney, thereby reducing the overall time taken for FPI onboarding and improving ease of doing business for FPI applicants. As reported by The Economic Times, Sebi stated that during interactions with foreign investors, it has been highlighted that notarisation and apostillisation takes considerable time. The regulator emphasized that "digitally signed PoA is envisaged to bring down the time taken in onboarding considerably as it eliminates the need for notarisation, apostillisation or consularisation of PoA." The provisions of this circular will come into force with effect from August 20, 2026, as reported by The Hindu BusinessLine and The Economic Times.
The digital PoA framework is expected to make FPI onboarding less cumbersome while providing custodians with a legally recognised digital document that can be processed electronically. As reported by The Hindu BusinessLine, the change modifies the relevant provision under SEBI's Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors. The revised provision does not remove the requirement for an FPI to provide a Power of Attorney to its custodian where such authorisation is required. Instead, it changes the manner in which the document can be executed, allowing a compliant digital signature to be used. The move is expected to be particularly useful for FPIs that operate through international investment structures and need to coordinate documentation across multiple jurisdictions. For custodians, the revised framework could also simplify the process of receiving and processing PoAs from overseas clients, as the custodian acts on the instructions and authority provided by the FPI. The move is part of broader efforts to improve ease of doing business in India's securities market and streamline processes for global investors.
The Securities and Exchange Board of India (Sebi) said the move is part of its continued efforts to digitalise the FPI onboarding process. According to CNBC TV18, The Hindu BusinessLine, Devdiscourse, ANI, Rediff Moneynews, ETMarkets, NDTV Profit, and Business Standard, over the years, Sebi has introduced several measures in this direction, including a Common Application Form (CAF) for FPI registration, PAN, bank and demat accounts, permitting Indian digital signatures for executing CAF and other registration documents, digital signatures functionality within the CAF portal and granting registration based on scanned copies. The latest decision extends the digitalisation of the onboarding process to Power of Attorney documents submitted by FPIs to custodians. As reported by The Economic Times, the measure forms part of Sebi's wider effort to leverage technology across the capital markets and further streamline regulatory processes. The regulator stated that greater use of digital processes would help bring down the overall time required for FPI onboarding. The digital route will eliminate the requirement for additional authentication of the PoA through notarisation, apostillisation or consularisation, with the move expected to reduce the overall time taken for onboarding FPIs and make the registration process more efficient. The regulator's decision also reflects the increasing use of digital processes across financial markets, as electronic documentation, digital signatures and online regulatory procedures have become increasingly important as market participants seek faster and more efficient ways to complete compliance-related formalities.
The provisions of this circular will come into force with effect from August 20, 2026, as reported by The Hindu BusinessLine and The Economic Times. Industry experts have welcomed this digital transformation initiative. Ameet Mane, CEO, Fund Business, Dovetail Capital, stated that "POA has always been one of the most time-consuming document for FPIs due to the requirement of original signed in wet ink and further notarized and apostilled or consularized. This is a welcome move by SEBI and further helps to smoothen the overall effort for FPI registration in India." The circular has been issued under Section 11(1) of the SEBI Act, 1992, read with Regulation 44 of the SEBI (Foreign Portfolio Investors) Regulations, 2019. As reported by CNBC TV18 and The Hindu BusinessLine, the change is aimed at reducing the time taken to onboard FPI applicants and further digitalising the FPI registration process. The regulator said the measure is intended to protect investor interests while promoting the development and regulation of the securities market. According to ANI, Rediff Moneynews, and ETMarkets, the digital route will eliminate the requirement for additional authentication of the PoA through notarisation, apostillisation or consularisation, with the move expected to reduce the overall time taken for onboarding FPIs and make the registration process more efficient. The move could provide significant operational relief to foreign investors and intermediaries, particularly as Sebi seeks to make market access simpler and more efficient for global capital.
