Sebi Eases FPI Onboarding With Digital Power of Attorney

Sebi has announced a significant simplification to its foreign portfolio investor onboarding procedures. According to the announcement, the regulator now permits the use of digitally signed power of attorney documents, removing the previous necessity for notarization and consularization. This regulatory adjustment streamlines administrative requirements that previously created friction in the investor registration process. The new framework is scheduled to come into effect on August 20, 2026, giving market participants time to adapt to the updated procedures.

This development reflects Sebi's broader commitment to digital transformation and modernizing India's capital markets infrastructure. By reducing documentation burdens and eliminating intermediary authentication steps, the regulator aims to enhance the ease of doing business for foreign investors seeking exposure to Indian equities and securities. Simplified FPI onboarding procedures can lower operational costs and reduce time-to-market for international capital, potentially making India's markets more competitive for cross-border investment flows. The change signals regulatory intent to attract overseas portfolio inflows at a time when emerging markets competition for foreign capital remains intense. For institutional investors and custodians managing international allocations to India, these procedural efficiencies reduce compliance complexity and associated costs, which may marginally improve return economics on Indian investments. Market participants should update their compliance frameworks ahead of the August 2026 implementation date to ensure smooth transition to digitally authenticated documentation standards.

Source: Markets-Economic Times