SEBI Eases FPI Onboarding With Digital PoA
Foreign portfolio investors can now submit digitally signed Powers of Attorney to custodians, eliminating the need for notarisation and apostillisation, effective August 20, 2026
The Securities and Exchange Board of India (SEBI) has allowed foreign portfolio investors (FPIs) to submit digitally signed Powers of Attorney (PoA) to custodians, effective August 20, 2026. This move is aimed at speeding up FPI onboarding and improving ease of doing business for foreign investors.
The digitally signed PoA must be executed in accordance with the provisions of the Information Technology Act, 2000. This eliminates the need for notarisation, apostillisation, or consularisation of the PoA, thereby reducing the overall time taken for FPI onboarding.
A Power of Attorney is a document through which a foreign portfolio investor (FPI) authorises its custodian to act on its behalf. The custodian is a financial institution that safely holds and manages investors' securities and assets. The custodian also acts as a designated depository participant to process FPI registrations, clear trades, manage settlements, and report compliance to regulators.
## What changed The new provision takes effect from August 20, 2026, and forms part of SEBI’s broader efforts to digitalise the registration and onboarding process for FPIs. Previously, the FPI Master Circular required the PoA specifying the address to be duly notarised and/or apostilled or consularised.
## Why it matters The move is significant as it will improve the ease of doing business for foreign investors in India. By allowing digitally signed PoA, SEBI is reducing the regulatory burden on FPIs and making it easier for them to invest in the Indian market. This is expected to attract more foreign investment into the country and boost the economy.
The SEBI's decision is part of its continued efforts to digitalise the FPI onboarding process and reduce the overall time taken for registration. The regulator has taken several measures to streamline and digitalise the FPI registration process, including the introduction of 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.
