SEBI lets FPIs use digital signatures for Power of Attorney

The Securities and Exchange Board of India (SEBI) has allowed foreign portfolio investors (FPIs) to submit a digitally signed Power of Attorney (PoA) to their custodians, eliminating the need for notarisation, apostillisation or consularisation. The move, announced on August 20, 2026, is part of the regulator's ongoing efforts to digitalise the FPI registration and onboarding process, making it faster and more efficient.

Under the revised rule, FPIs can execute the PoA using a digital signature compliant with the Information Technology Act, 2000. SEBI has also previously introduced measures such as a Common Application Form, use of Indian digital signatures, and registration based on scanned copies. The new provision will come into effect from August 20, 2026.

Separately, SEBI has also proposed changes to KYC rules for non-resident investors, including NRIs and OCIs, to allow fully digital onboarding from their country of residence. The proposal, currently under consultation, could reduce account activation time from weeks to days, according to Zerodha founder Nithin Kamath. The draft rule applies to investors from FATF-compliant countries.