SEBI Eases FPI Onboarding With Digitally Signed Power of Attorney

SEBI eases FPI onboarding, allows digitally signed power of attorney to custodians

New Delhi, Aug 20

Under the revised framework, an FPI can issue a PoA to its custodian by specifying its address and execute the document using a digital signature in accordance with the Information Technology Act, 2000, SEBI said.

"Towards SEBI's continued digitalisation efforts, FPIs are now permitted to execute a Power of Attorney (PoA) through digital signatures in accordance with the Information Technology Act, 2000," the market regulator said.

A PoA authorises an FPI's custodian to act on its behalf. Custodians are financial institutions responsible for holding and managing investors' securities and assets, while also performing functions such as processing FPI registrations, clearing trades, managing settlements and reporting compliance to regulators.

"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," it added.

SEBI said the revised process will eliminate the requirement for notarisation, apostillisation or consularisation of the PoA. This is expected to reduce the time required for FPI onboarding and further improve ease of doing business for foreign investors.

The capital markets regulator said the move is part of its continued efforts to digitalise and simplify the FPI onboarding process.

Over the years, SEBI has introduced several measures to streamline the registration process, including a Common Application Form for FPI registration, PAN, bank and demat accounts. 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.

The latest provisions will come into force with effect from August 20, 2026, SEBI said.

— IANS