SEBI Streamlines FPI Onboarding with Digital Power of Attorney

SEBI has introduced a regulatory update permitting Foreign Portfolio Investors to utilise digitally signed Power of Attorney documents as part of their submission requirements. According to the announcement, these digital documents must comply with India's Information Technology Act, 2000. The directive removes the previous requirement for notarisation and apostillisation—processes that added administrative complexity and extended onboarding timelines for international investors seeking exposure to Indian securities markets.

This regulatory change carries significance for India's capital markets infrastructure. FPIs represent a substantial source of foreign capital inflows into Indian equities, and streamlining their onboarding processes directly impacts market competitiveness. By reducing documentation hurdles, SEBI signals intent to enhance ease of doing business for international investors, potentially lowering entry barriers and transaction costs. The elimination of notarisation and apostillisation—typically time-consuming and geographically dependent procedures—addresses a known friction point in cross-border investment processes. For the broader Indian market, faster FPI onboarding could improve liquidity conditions in equity and debt segments, while reducing operational delays that previously discouraged marginal participants. The shift toward digital documentation aligns with global regulatory trends emphasising electronic processes and cost efficiency in financial market infrastructure.

Source: Markets-Economic Times