In what could be defined as a move aimed at making it easier and faster for overseas investors to enter the Indian market, Securities and Exchange Board of India (SEBI) has allowed Foreign Portfolio Investors (FPIs) to use a digitally signed Power of Attorney (PoA).
As per the new framework, FPIs can issue a PoA in favour of their custodian by digitally signing the document as per the Information Technology Act, 2000.
A PoA allows an FPI to authorise its custodian to act on its behalf and includes details such as the investor’s address. Earlier, FPIs were often required to get these documents physically notarised, apostilled or consularised, making the onboarding process more cumbersome and time-consuming.
According to SEBI, the move will improve the ease of doing business for foreign investors and simplify their entry into Indian capital markets. The new rules will come into effect immediately from August 20, 2026.
