SEBI Allows Digitally Signed Power of Attorney for FPIs in Fresh Onboarding Ease Measure
The Securities and Exchange Board of India (SEBI) now allows Foreign Portfolio Investors (FPIs) to give custodians a digitally signed Power of Attorney (PoA) for their address, without notarisation, apostille or consularisation. The change is made by SEBI Circular No. HO/19/34/14(8)2026-AFD-POD2/I/19251/2026 dated 20 August 2026, titled "Acceptance of digitally signed Power of Attorney from FPIs", and took effect on the date of issue. SEBI also issued Press Release No. 49/2026 on the same day on ease of onboarding for FPIs.
What the circular changes
The change is in para 9(B)(iv) of the Master Circular for FPIs (SEBI/HO/AFD/AFD-PoD2/P/CIR/P/2024/70 dated 30 May 2024). That paragraph lists the documents an FPI may give its custodian as proof of address for KYC. One option is a Power of Attorney given by the FPI to the custodian specifying the address.
| Before | From 20 August 2026 |
|---|---|
| PoA given by the FPI to the custodian specifying the address, duly notarised and/or apostilled or consularised | Either the same notarised/apostilled/consularised PoA, or a PoA specifying the address executed using a digital signature in accordance with the Information Technology Act, 2000 |
The physical route has not been removed. The digital route is an alternative, and it removes the need for notarisation, apostille or consularisation where the PoA is signed digitally under the IT Act, 2000.
Legal basis and who it applies to
The circular (PDF) is issued under section 11(1) of the SEBI Act, 1992 read with regulation 44 of the SEBI (Foreign Portfolio Investors) Regulations, 2019. It is addressed to FPIs, designated depository participants (DDPs), custodians, registrars, depositories, stock exchanges and other SEBI-registered intermediaries. It is signed by a Deputy General Manager of SEBI.
Part of a wider digital onboarding effort
The circular places the change alongside earlier FPI onboarding reforms. These include the Common Application Form (CAF) for registration, PAN, bank and demat accounts; permission to use Indian digital signatures to execute the CAF and other registration documents; digital signature functionality within the CAF portal; and grant of registration based on scanned copies. Accepting a digitally signed address PoA extends the same approach to KYC documentation held by custodians.
What intermediaries should review now
A digital PoA still has to be verified. The circular does not remove the custodian's KYC responsibility; it changes only the form in which the PoA may be executed. Custodians, DDPs and operations teams should review:
- FPI onboarding checklists that still assume a wet-signed, notarised or apostilled PoA;
- procedures to validate digital signatures under the Information Technology Act, 2000;
- client communication templates and document lists sent to prospective FPIs; and
- escalation rules used by operations, custody and compliance teams when a PoA is received in digital form.
For FPIs and their global custodians, the practical gain is time. A cross-border PoA that previously needed a notary and an apostille or consular stamp can now be executed digitally, provided the signature meets the IT Act, 2000 standard.
Updated on 27 September 2026: expanded with the para 9(B)(iv) change to the FPI Master Circular, the IT Act, 2000 condition, the legal basis, addressees and earlier digital onboarding measures, verified against the SEBI circular.
