Business · India Bureau
Sebi permits digital power of attorney to streamline FPI onboarding
India's markets regulator has approved the use of digitally signed powers of attorney to simplify the process for foreign portfolio investors entering the Indian market. The move is expected to reduce procedural delays and lower compliance costs for international investors.
LSN India ·
The Securities and Exchange Board of India (Sebi) has given the green light for foreign portfolio investors to use digitally signed powers of attorney during the onboarding process, marking a significant step toward digitalization of market entry procedures.
The regulatory approval eliminates the requirement for investors to obtain physical or wet-signed powers of attorney, streamlining what has traditionally been a time-consuming documentation process. Digital signatures, which carry legal validity under Indian law, are now recognized as equivalent to traditional signatures for this purpose, reducing friction in investor onboarding workflows.
The measure is likely to accelerate FPI participation in Indian capital markets by lowering administrative barriers and associated compliance costs. Foreign investors have long cited documentation requirements as a source of friction when entering emerging markets, and the digitalization of this process aligns with global trends toward paperless financial operations.
The development comes as India's securities markets continue to attract growing international interest, with policymakers seeking to enhance the ease of market access for offshore investors. Sebi's move reflects broader efforts to modernize market infrastructure and reduce unnecessary friction in investor participation.