Sebi Eases FPI Onboarding With Digital Power of Attorney

India's Securities and Exchange Board (Sebi) has introduced regulatory changes designed to simplify foreign portfolio investor (FPI) onboarding procedures. According to the announcement, the regulator now permits foreign investors to utilise digital signatures for power of attorney documentation, removing the need for notarisation and apostillisation processes. This streamlined approach represents an effort to reduce administrative friction in the FPI registration workflow, potentially shortening approval timelines and improving the overall investor experience.

The regulatory modification underscores Sebi's commitment to modernising market access mechanisms. By adopting digital authentication methods, the regulator aligns with global best practices in investor onboarding while maintaining regulatory oversight standards. The elimination of notarisation and apostillisation steps—traditionally time-consuming procedures requiring official verification—signals the capital markets authority's intent to leverage technology for operational efficiency.

From a market perspective, streamlined FPI onboarding procedures carry significance for capital inflows into Indian equity and debt markets. Reduced administrative barriers typically correlate with improved market accessibility for international investors, potentially increasing foreign participation in Indian securities. Enhanced FPI inflows can support rupee stability, provide liquidity to domestic markets, and strengthen the overall investment ecosystem. This regulatory move reflects broader government efforts to position India as an attractive destination for global capital amid intensifying competition for international investment flows across emerging markets. The initiative may particularly benefit smaller and mid-sized foreign investors for whom administrative complexity previously posed entry barriers.

Source: Markets-Economic Times