SEBI permits FPIs to execute Power of Attorney with digital signatures

SEBI issued Circular HO/19/34/14(8)2026-AFD-POD2/I/19251/2026 on August 20, 2026, permitting Foreign Portfolio Investors (FPIs) to execute Power of Attorney documents using digital signatures under the Information Technology Act, 2000, as an alternative to traditional notarization, apostillization, or consularization. This amendment modifies Para 9(B)(iv) of Part B of the FPI Master Circular and applies to all FPIs, Designated Depository Participants, custodians, stock exchanges, depositories, registrars, share transfer agents, and SEBI-registered intermediaries. Previously, FPIs were required to obtain notarized, apostillized, or consularized Power of Attorney documents, creating delays and operational friction in the onboarding process. The circular streamlines and digitalizes the FPI onboarding process, reducing overall time and improving ease of doing business for foreign investors. All intermediaries and market infrastructure entities must now recognize digitally signed POAs as valid authentication documents. The provisions came into force effective August 20, 2026, and affected entities must update their systems and procedures to accept digital signatures on FPI authorization documents.