SEBI Streamlines FPI Registration with Digital PoA

In a bid to streamline operations, the Securities and Exchange Board of India (SEBI) will permit foreign portfolio investors to use digitally signed Power of Attorney documents. This eliminates traditional authentication methods and speeds up onboarding, enhancing ease of business for foreign investors entering Indian capital markets.

In a significant move to streamline processes for foreign investors, the Securities and Exchange Board of India (SEBI) announced on Thursday its decision to allow foreign portfolio investors (FPIs) to submit digitally signed Power of Attorney (PoA) documents. This initiative removes the necessity for traditional notarization, apostillisation, or consularisation, thereby reducing the time required for onboarding FPIs. The transition is part of SEBI’s ongoing efforts to digitalize and simplify the FPI registration process, aiming to foster a more business-friendly environment.

The new regulation is set to take effect from August 20, 2026. SEBI has instituted multiple measures over the years to digitize FPI registration, such as introducing the Common Application Form (CAF) for various registrations including PAN, bank, and demat accounts, and authorizing the use of Indian digital signatures for document executions. The latest circular allows FPIs to submit a PoA to custodians with digital signatures under the Information Technology Act, 2000, alongside the existing notarized forms option.

The change, outlined in SEBI's Master Circular for Foreign Portfolio Investors, aims to eliminate additional authentication requirements for PoAs, thereby optimizing the registration timeline. This move intends to minimize documentation friction for overseas investors entering Indian markets by endorsing digital processes over physical ones. Issued under SEBI's powers as per the Securities and Exchange Board of India Act, 1992, this measure seeks to enhance investor protection while supporting market development and regulation.