SEBI Circular dated August 20, 2026
SEBI has taken another step towards simplifying and digitising the onboarding of Foreign Portfolio Investors (FPIs).
Through its circular dated August 20, 2026, SEBI has permitted FPIs to execute a Power of Attorney (PoA) in favour of their custodians using a digital signature, in accordance with the Information Technology Act, 2000.
The change removes the requirement for such digitally executed PoAs to undergo notarisation, apostillisation or consularisation.
What has changed?
Under the earlier requirement, the Power of Attorney given by an FPI to its custodian, specifying the address, was required to be duly notarised and/or apostilled or consularised.
SEBI has now modified this requirement to provide an additional route:
A Power of Attorney given by an FPI to its custodian specifying the address may be executed using a digital signature in accordance with the Information Technology Act, 2000.
The existing notarised/apostilled/consularised route continues to be available. The new digitally signed route is therefore an additional option, rather than a replacement of the existing process.
Why is this important?
The change is aimed at making FPI onboarding faster and more digital.
Cross-border execution of legal documents can often involve additional steps such as:
Notarisation
Apostillisation
Consularisation
Physical document movement
Coordination with overseas legal professionals
SEBI has specifically stated that the change will eliminate the need for notarisation, apostillisation or consularisation of the Power of Attorney, thereby reducing the overall time involved in FPI onboarding and improving ease of doing business for FPI applicants.
Part of SEBI’s broader FPI digitisation journey
The circular places this change within SEBI’s broader effort to streamline and digitise the FPI registration process.
SEBI has previously introduced measures including:
The Common Application Form (CAF) for FPI registration
PAN, bank and demat account processes
Use of Indian digital signatures for CAF and other registration documents
Digital signature functionality within the CAF portal
Registration based on scanned copies of documents
The digitally signed PoA is another step in that progression.
Effective from August 20, 2026
The circular is effective immediately from August 20, 2026.
It modifies Para 9(B)(iv) of Part B of the FPI Master Circular relating to the Power of Attorney given by an FPI to its custodian.
What does this mean for FPI onboarding?
For an FPI choosing to use the digital route, the process can now be significantly more streamlined:
FPI → Digitally signs PoA → Custodian → FPI onboarding
Instead of:
FPI → Notarisation → Apostille/Consularisation → Physical/document processing → Custodian
This should be particularly relevant for overseas investors seeking to enter the Indian securities market without the administrative delays associated with execution and legalisation of physical documents.
What intermediaries should note
The circular is addressed not only to FPIs but also to:
Designated Depository Participants (DDPs)
Custodians
Registrars and Transfer Agents
Depositories
Stock Exchanges and Clearing Corporations
SEBI-registered intermediaries
Accordingly, onboarding workflows and document checklists maintained by relevant intermediaries should account for the newly permitted digitally signed PoA route.
A small regulatory change with a meaningful operational impact
The circular is only two pages long, but its operational impact is straightforward: SEBI is continuing to move FPI onboarding away from physical and jurisdiction-specific document formalities towards digitally executable documentation.
For global investors, this can reduce turnaround time and administrative friction.
For custodians and onboarding platforms, it also means that digital signature verification and document workflow capabilities become increasingly important components of the FPI onboarding stack.
Key takeaway
SEBI has not abolished the traditional notarisation/apostille route. It has added a digitally signed PoA route as an alternative.
Effective August 20, 2026, an FPI can provide a Power of Attorney to its custodian, specifying the address, executed using a digital signature compliant with the Information Technology Act, 2000.
This is another incremental but important step towards fully digital, faster and more frictionless foreign investor onboarding in India.
Source: SEBI Circular HO/19/34/14(8)2026-AFD-POD2/I/19251/2026 dated August 20, 2026.