Sebi eases FPI onboarding; permits digitally signed power of attorney

The Securities and Exchange Board of India (Sebi) on Thursday introduced a measure to ease the onboarding process for foreign portfolio investors (FPIs), allowing them to execute power of attorney (PoA) documents using digital signatures.

The move, effective August 20, 2026, is part of the capital markets regulator’s broader push towards digitalisation and reducing documentation-related hurdles for foreign investors.

“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 capital market regulator notified today.

Under the new framework, FPIs can execute PoAs through digital signatures in accordance with the Information Technology Act, 2000. The key change is that digitally signed PoAs will no longer require the traditional processes of notarisation, apostillisation or consularisation.

As per the Sebi, the change follows feedback received during its interactions with foreign investors, who had highlighted that these procedures often take considerable time and can delay the onboarding process.

“The above measure forms part of Sebi’s broader endeavour to leverage technology and provide a seamless, transparent and investor-friendly onboarding ecosystem for FPIs,” it said.

The regulator said the move is aimed at making the FPI onboarding ecosystem more seamless, transparent and investor-friendly by reducing reliance on physical documentation.

“By reducing physical documentation and procedural requirements and enabling greater use of digital processes, Sebi aims to further reduce the overall time taken for FPI onboarding,” the regulator said.

The latest measure comes as Sebi has been increasingly focusing on simplifying market-access procedures and using technology to reduce compliance friction for investors.

The regulator said the digitally signed PoA framework forms part of its “broader endeavour to leverage technology” and create a more efficient FPI onboarding ecosystem.

For FPIs, faster onboarding can be particularly important when investment decisions are time-sensitive. Delays in documentation and verification can add to operational costs and create friction for global funds seeking exposure to Indian equities and other securities.

In the past 12 months, foreign institutional investors (FIIs) have withdrawn ₹4.53 lakh crore from the secondary market, while infused ₹72,800 crore into the primary market during the same period.

The sharp divergence comes at a time when India's secondary market has faced multiple headwinds, with benchmark indices Sensex and Nifty50 declining over 6% and 4%, respectively, in the past one year. The sell-off has been driven by sustained foreign outflows, slowing corporate earnings, elevated valuations and global geopolitical uncertainties.