A New Era for Foreign Portfolio Investors in India
The Securities and Exchange Board of India (SEBI) has announced a significant policy shift aimed at modernizing the onboarding process for Foreign Portfolio Investors (FPIs). Effective August 20, 2026, FPIs will be permitted to submit digitally signed Powers of Attorney (PoA) to custodians, marking a pivotal step towards a more efficient and investor-friendly regulatory environment.
Streamlining the Onboarding Process
This new provision eliminates the previous requirement for physical authentication methods, such as notarisation, apostillisation, or consularisation, which often introduced delays and administrative burdens for foreign entities. By accepting digital PoAs, SEBI intends to significantly accelerate the FPI onboarding timeline, making it easier for foreign capital to flow into Indian markets.
The move is a direct response to calls for improved ease of doing business, particularly for international investors navigating India's financial landscape. It reflects a broader commitment to leveraging technology to create a more accessible and agile investment ecosystem.
Legal Framework and Broader Digitalization
The acceptance of digitally signed PoAs will be in accordance with the provisions of India's Information Technology Act, 2000, ensuring legal validity and security for these electronic documents. This change is not an isolated measure but forms an integral part of SEBI's ongoing efforts to digitalize the entire registration and onboarding process for FPIs.
Ultimately, this regulatory update is expected to enhance India's appeal as an investment destination, fostering greater participation from foreign portfolio investors by simplifying compliance procedures and reducing operational friction.