SEBI has simplified the onboarding process for foreign portfolio investors (FPIs), allowing them to now submit a digitally signed power of attorney (POA) to their custodian.
The Securities and Exchange Board of India (SEBI) on Thursday eased the onboarding process of foreign portfolio investors (FPIs) by allowing them to submit digitally signed power of attorney (POA) to their custodian.
SEBI said that under the amended regime, FPIs can issue a POA to their custodian specifying its address and execute this document through digital signature as per the Information Technology Act, 2000.
“As part of SEBI’s ongoing digitalisation efforts, FPIs are now permitted to execute Power of Attorney (PoA) through digital signature as per the Information Technology Act, 2000,” the market regulator said.
The POA empowers the custodian of the FPI to act on its behalf. Custodians are financial institutions that hold and manage investors’ securities and assets. They also handle functions such as processing FPI registration, clearing trades, managing settlements and compliance reporting to regulators.
Sebi said digitally signed POAs are expected to significantly reduce the onboarding time as it eliminates the need for notarization, apostilization or consularization of the POA. SEBI said that under the revised process, there will be no need for notarization, apostilization or consularization of the POA. This is expected to reduce the onboarding time of FPIs and make it easier for foreign investors to do business.
The capital markets regulator said the move is part of its efforts to continuously digitalize and simplify the FPI onboarding process. Over the last few years, SEBI has taken several steps to streamline the registration process. These include Common Application Form (CAF) for FPI registration, PAN, bank and demat accounts.
Additionally, the use of Indian digital signatures has been permitted to execute CAF and other registration documents. Digital signature facility has been introduced within the CAF portal and registration based on scanned copies has also been allowed. SEBI said that the new provisions will be effective from August 20, 2026.
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