SEBI Allows Digitally Signed Power of Attorney for FPIs in Fresh Onboarding Ease Measure

The Securities and Exchange Board of India has issued a fresh circular permitting acceptance of digitally signed Power of Attorney documents from Foreign Portfolio Investors. The measure was announced on 20 August 2026 as part of SEBI's continuing focus on easing onboarding and reducing avoidable friction in securities-market processes.

The circular is titled Acceptance of digitally signed Power of Attorney from FPIs and carries Circular No. HO/19/34/14(8)2026-AFD-POD2/I/19251/2026. SEBI also issued Press Release No. 49/2026 on the same date under the heading Ease of onboarding for FPIs – Acceptance of digitally signed Power of Attorney.

Digitally signed PoA now accepted for FPI onboarding

The operative change is straightforward: a Power of Attorney submitted in digitally signed form by an FPI can now be accepted under the updated SEBI framework. For market participants involved in FPI onboarding, documentation review and account-opening workflows, this removes the need to treat a digitally executed PoA as inherently unsuitable merely because it is not physically signed.

Onboarding impact for FPIs and intermediaries

Power of Attorney documentation is commonly used to authorise representatives or service providers to act for investors in defined operational matters. Allowing digital signatures can make cross-border onboarding more practical, particularly where investors, custodians, designated depository participants and other intermediaries are operating across jurisdictions and time zones.

The change is also relevant from a control perspective. Compliance teams should not read the circular as removing document-verification responsibilities. The practical task is to update internal onboarding checklists, standard operating procedures and document-review controls so that digitally signed PoAs are handled in line with the exact SEBI circular and any linked operational requirements.

What intermediaries should review now

- FPI onboarding checklists that currently assume a physical or wet-signature PoA.

- Internal validation procedures for digitally signed documents.

- Client communication templates and document requirement lists.

- Escalation rules used by operations, custody and compliance teams when reviewing PoA documentation.

Useful official links

SEBI Circular: Acceptance of digitally signed Power of Attorney from FPIs

Key takeaway

SEBI's 20 August 2026 circular introduces a targeted onboarding simplification for FPIs by recognising digitally signed Power of Attorney documentation. Securities-market intermediaries handling FPI accounts should align their documentation workflows with the new circular and ensure that digital-document verification controls are operationally ready.