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The Securities and Exchange Board of India (SEBI) has allowed foreign portfolio investors (FPIs) to submit digitally signed Power of Attorney (PoA) documents, removing the need for notarisation, apostillisation or consularisation and reducing the time required for FPI onboarding, the market regulator said on Thursday.
The capital markets regulator said the move is part of its continued efforts to digitalise and streamline the FPI registration and onboarding process and improve ease of doing business for foreign investors. The new provision will come into effect from August 20, 2026. SEBI said it has over the years introduced several measures to digitalise the FPI registration process, including the Common Application Form (CAF) for registration, PAN, bank and demat accounts, and permitting the use of Indian digital signatures for executing CAF and other registration documents. It has also facilitated digital signature functionality within the CAF portal and allowed registration based on scanned copies. Under the latest circular, FPIs can now submit a Power of Attorney given to custodians specifying the address and executed using a digital signature in accordance with the provisions of the Information Technology Act, 2000. This option will be available alongside the existing requirement of submitting a duly notarised, apostilled or consularised PoA. The change modifies the relevant provision under SEBI's Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors. SEBI said the digital route will eliminate the requirement for additional authentication of the PoA through notarisation, apostillisation or consularisation. According to the regulator, this is expected to reduce the overall time taken for onboarding FPIs and make the registration process more efficient. The move is also aimed at further reducing documentation-related friction for overseas investors seeking access to Indian capital markets, as digital execution can potentially allow documents to be completed and submitted without going through multiple physical authentication procedures. The circular has been issued under SEBI's powers under the Securities and Exchange Board of India Act, 1992, read with the SEBI (Foreign Portfolio Investors) Regulations, 2019. The regulator said the measure is intended to protect investor interests while promoting the development and regulation of the securities market. (ANI)
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