SEBI Eases FPI Onboarding via Digitally Signed Power of Attorney Mandate

The Securities and Exchange Board of India (SEBI) issued a circular allowing Foreign Portfolio Investors (FPIs) to submit digitally signed Power of Attorney (PoA) documents during their onboarding process. This regulatory shift aims to reduce operational friction and accelerate capital entry into Indian capital markets.

Previously, foreign institutional investors faced lengthy administrative delays due to mandates requiring physical ink signatures, consularization, or physical apostillation of legal documents. By modernizing these procedural requirements, SEBI continues its drive toward digitalization in market infrastructure.

The framework leverages secure electronic signature mechanisms compliant with global standards and India's Information Technology Act, 2000. Designated Depository Participants (DDPs) and Custodians can now verify and process FPI registration applications digitally, cutting down onboarding timelines from weeks to days.

This move enhances India’s Ease of Doing Business ranking in financial markets and attracts foreign indirect investment (FII/FPI). It serves as an important update for financial regulatory topics in UPSC GS-III and specialized banking/SEBI Grade A examinations.