SEBI Cuts FPI Paperwork, Permits Digitally Signed Power Of Attorney
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SEBI has allowed FPIs to use digitally signed Power of Attorney documents from 20 August 2026, cutting authentication steps as foreign investors withdrew ₹4.53 lakh crore from the secondary market over the past year.
The Securities and Exchange Board of India (SEBI) has opened up a digital route for Foreign Portfolio Investors (FPIs) to complete their Power of Attorney (PoA) paperwork. The new rule takes effect from 20 August 2026.
Under the change, foreign investors can use digitally signed PoA documents. SEBI is looking to cut down the paperwork involved in FPI onboarding and make the process quicker.
What Has SEBI Changed For FPI Onboarding?
The key change concerns the way FPIs execute their PoA documents. Instead of relying on physical documentation and the related authentication procedures, investors can now use a digital signature in line with the Information Technology Act, 2000.
The change follows feedback from foreign investors during SEBI's interactions with market participants. Investors had pointed to notarisation, apostillisation and consularisation as processes that could take considerable time and hold up onboarding.
SEBI said the digital PoA facility is intended to reduce the time involved in bringing FPIs into the Indian market. The regulator also wants to reduce reliance on physical documents as more parts of the onboarding process move online.
Why Is SEBI Allowing Digitally Signed Power Of Attorney?
The regulator's broader objective is to make the FPI onboarding process more seamless and easier to navigate. Removing multiple document-authentication steps is expected to cut some of the procedural work involved before a foreign investor can begin investing in India.
The change can be particularly relevant when investment decisions are time-sensitive. Delays in document verification can add to operational work for overseas funds looking to invest in Indian equities and other securities.
SEBI said the measure forms part of its wider digitalisation efforts and is intended to create a more transparent and investor-friendly onboarding system.
What Does The Move Mean For Foreign Investors?
For FPIs, the change reduces the number of physical and authentication steps required for PoA. The digitally signed document can be executed under the new framework without the need for earlier notarisation, apostillisation or consularisation procedures.
The move comes against a backdrop of substantial foreign investor flows in Indian markets. Over the past 12 months, FPIs have withdrawn ₹4.53 lakh crore from the secondary market while putting ₹72,800 crore into the primary market.
The secondary market has also faced pressure during the period. The Sensex declined more than 6%, while the Nifty 50 fell over 4% over the past year, amid foreign outflows, slower corporate earnings, elevated valuations and global geopolitical uncertainties.
SEBI's latest measure does not change the investment process itself. Instead, it removes specific documentation hurdles around PoA and gives FPIs a digital route for completing that part of onboarding.
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Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
