New Delhi, August 20: The Securities and Exchange Board of India (SEBI) has made significant strides in simplifying the onboarding process for Foreign Portfolio Investors (FPIs). On Thursday, SEBI announced that FPIs can now submit a digital Power of Attorney (POA) to their custodians.
According to SEBI, under the revised framework, FPIs can issue a POA specifying their address and execute this document using digital signatures in accordance with the Information Technology Act, 2000.
The market regulator stated, “As part of SEBI’s ongoing digitalization efforts, FPIs are now permitted to execute the Power of Attorney (POA) using digital signatures as per the Information Technology Act, 2000.”
The POA grants custodians the authority to act on behalf of the FPIs. Custodians are financial institutions that hold and manage investors’ securities and assets. They also handle tasks such as the FPI registration process, trade clearance, settlement management, and compliance reporting to regulators.
SEBI anticipates that the use of digital signatures for the POA will significantly reduce the time required for onboarding, as it eliminates the need for notarization, apostillation, or consularization of the document.
The regulator noted that under the revised process, there will be no requirement for notarization, apostillation, or consularization of the POA. This change is expected to expedite the onboarding process for FPIs and make it easier for foreign investors to conduct business.
This initiative is part of SEBI’s continuous efforts to digitize and simplify the FPI onboarding process. In recent years, SEBI has implemented several measures to streamline the registration process, including a Common Application Form (CAF) for FPI registration, PAN, bank, and demat accounts. Additionally, the use of Indian digital signatures for executing the CAF and other registration documents has been permitted. The CAF portal now includes the facility for digital signatures, and registration based on scanned copies has also been allowed.
SEBI confirmed that these new provisions will come into effect on August 20, 2026.
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