The Securities and Exchange Board of India (SEBI) has announced a regulatory update allowing foreign portfolio investors (FPIs) to submit digitally signed Power of Attorney (PoA) documents. The new provision, set to come into effect from August 20, 2026, removes the requirement for notarisation, apostillisation, or consularisation, according to a circular issued by the market regulator.
The capital markets regulator stated that the move is part of its ongoing efforts to digitalise and streamline the FPI registration and onboarding process. The policy change is intended to improve the ease of doing business for foreign investors looking to access Indian capital markets by reducing documentation-related friction.
Under the updated framework, FPIs can now submit a Power of Attorney given to custodians specifying the address and executed using a digital signature in accordance with the provisions of the Information Technology Act, 2000. This digital execution option will be available alongside the existing requirement of submitting a duly notarised, apostilled, or consularised PoA.
SEBI noted that over the years, it has introduced several measures to digitalise the FPI registration process. These include the Common Application Form (CAF) for registration, obtaining PAN, bank and demat accounts, and permitting the use of Indian digital signatures for executing CAF and other registration documents. The regulator has also previously facilitated digital signature functionality within the CAF portal and allowed registration based on scanned copies.
According to the market regulator, eliminating physical authentication procedures such as notarisation or consularisation is expected to reduce the overall time taken for onboarding FPIs and make the registration process more efficient. Overseas investors will be able to complete and submit documents without going through multiple physical authentication steps.
The circular has been issued under SEBI’s powers under the Securities and Exchange Board of India Act, 1992, read with the SEBI (Foreign Portfolio Investors) Regulations, 2019. The regulator stated that the measure is intended to protect investor interests while promoting the development and regulation of the securities market. The change modifies the relevant provision under SEBI’s Master Circular for Foreign Portfolio Investors, Designated Depository Participants, and Eligible Foreign Investors.
"SEBI's decision to accept digitally signed Power of Attorney documents is a practical step toward reducing administrative delays for foreign institutional participants. By eliminating physical notarisation and apostillisation requirements, the regulator is directly addressing friction points in cross-border capital flows. This move will significantly lower compliance overheads and accelerate the operational onboarding timeline for foreign portfolio investors entering the Indian market." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
