SEBI eases FPI onboarding with digitally signed Power of Attorney from 20 August
Synopsis
SEBI has cut one of the most persistent paperwork bottlenecks for foreign investors: the physical Power of Attorney. By accepting digitally signed PoAs under the IT Act, 2000, the regulator eliminates notarisation and apostillisation — steps that have long delayed FPI entry into Indian markets. Effective 20 August 2026, the change is the sharpest single friction-reduction in the FPI onboarding chain in recent years.
Key Takeaways
SEBI has permitted foreign portfolio investors (FPIs) to execute a digitally signed Power of Attorney (PoA) to their custodians, effective 20 August 2026 .
The revised framework eliminates the requirement for notarisation, apostillisation, or consularisation of the PoA.
Digital signatures must comply with the Information Technology Act, 2000 .
The change is expected to significantly reduce FPI onboarding time and lower administrative costs for overseas investors.
It builds on earlier SEBI measures including the Common Application Form (CAF) , digital signatures for registration documents, and scanned-copy-based registration.
The Securities and Exchange Board of India (SEBI) on Thursday, 20 August 2026, simplified the onboarding process for foreign portfolio investors (FPIs) by permitting them to submit a digitally signed Power of Attorney (PoA) to their custodians — eliminating the need for notarisation, apostillisation, or consularisation. The revised framework takes effect immediately from 20 August 2026.
What Has Changed
Under the updated rules, an FPI can now issue a PoA to its custodian by specifying its address and executing the document using a digital signature compliant with the Information Technology Act, 2000. Previously, the process required physical documentation with notarisation or apostillisation — steps that added significant time and administrative burden, particularly for overseas investors.
'Digitally signed PoA is envisaged to bring down the time taken in onboarding considerably as it eliminates the need for notarisation, apostillisation or consularisation of PoA,' SEBI stated in its official communication.
Role of Custodians and Why This Matters
A PoA authorises an FPI's custodian to act on its behalf across a range of critical functions. Custodians are financial institutions responsible for holding and managing investors' securities and assets; they also process FPI registrations, clear trades, manage settlements, and report compliance to regulators. Faster PoA execution directly accelerates the entire onboarding chain.
This is a meaningful friction-reduction for foreign funds looking to enter Indian capital markets, where multi-week onboarding timelines have historically been cited as a barrier to entry.
Part of a Broader Digitalisation Drive
The move is the latest in a series of regulatory upgrades SEBI has introduced to streamline FPI access. Over the years, the market regulator has rolled out a Common Application Form (CAF) covering FPI registration, PAN, bank, and demat accounts in a single workflow. It has also permitted the use of Indian digital signatures for executing the CAF and other registration documents, introduced digital signature functionality within the CAF portal, and allowed registration based on scanned copies.
Notably, Thursday's circular builds directly on these earlier layers — extending digital-first principles to the PoA, which had remained a paper-bound requirement even as other documents went digital.
Ease of Doing Business Impact
SEBI has framed the change explicitly as an ease-of-doing-business measure aimed at attracting and retaining foreign capital. By removing the consular and notarial steps — which often require coordination across multiple jurisdictions — the regulator is reducing both cost and calendar time for FPIs domiciled in countries with complex apostille procedures.
With global capital flows increasingly sensitive to regulatory friction, the reform positions India's market infrastructure as more competitive relative to peer emerging markets. Industry observers will watch whether this translates into a measurable uptick in new FPI registrations in the quarters ahead.
Point of View
The PoA remained stubbornly paper-bound, often requiring coordination with foreign notaries and consulates that added weeks to timelines. The real question is whether custodians and FPI administrators update their internal workflows fast enough to realise the promised speed gains. Regulatory intent and operational reality in Indian financial plumbing do not always move in lockstep. If adoption is swift, this could become a visible data point in India's next World Bank Ease of Doing Business assessment.
NationPress
20 Aug 2026
Frequently Asked Questions
What has SEBI changed about FPI onboarding?
SEBI now allows foreign portfolio investors to submit a digitally signed Power of Attorney to their custodians instead of a physically notarised or apostillised document. The change takes effect from 20 August 2026 and is intended to significantly cut onboarding time.
What is a Power of Attorney in the context of FPI registration?
A Power of Attorney authorises an FPI's custodian to act on its behalf for functions such as processing registrations, clearing trades, managing settlements, and reporting compliance to regulators. It is a foundational document in the FPI onboarding process.
Why does eliminating notarisation matter for foreign investors?
Notarisation, apostillisation, and consularisation require coordination across multiple jurisdictions and can add weeks to the onboarding timeline. Removing these steps reduces both cost and calendar time, particularly for FPIs domiciled in countries with complex apostille procedures.
When do the new SEBI FPI PoA rules come into effect?
The revised provisions came into force on 20 August 2026, the same day SEBI issued the circular.
How does this fit into SEBI's broader digitalisation efforts?
SEBI has progressively digitised the FPI registration chain, introducing a Common Application Form covering PAN, bank, and demat accounts, permitting Indian digital signatures on registration documents, and allowing scanned-copy-based registration. The digital PoA is the latest addition to this framework.
