- SEBI allows FPIs to submit digitally signed Powers of Attorney for onboarding
- PoAs can be digitally signed under the Information Technology Act, 2000
- Physical notarisation and apostillisation of PoAs are no longer mandatory
The Securities and Exchange Board of India (SEBI) on Thursday allowed Foreign Portfolio Investors (FPIs) to submit digitally signed Powers of Attorney (PoAs), in a move aimed at improving ease of doing business and speeding up the onboarding of foreign investors.
Under the new framework, a PoA executed by an FPI in favour of its custodian can now be digitally signed in accordance with the Information Technology Act, 2000.
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The move removes the need for the document to necessarily undergo physical notarisation, apostillisation or consularisation, which was required under the earlier framework.
SEBI has amended Para 9(B)(iv) of Part B of its Master Circular for FPIs, Designated Depository Participants and Eligible Foreign Investors.
The regulator said the change is aimed at reducing the time taken to onboard FPI applicants and further digitalising the FPI registration process.
The amendment takes effect immediately from Aug. 20.
The circular has been issued under Section 11(1) of the SEBI Act, 1992, read with Regulation 44 of the SEBI (Foreign Portfolio Investors) Regulations, 2019.
The move is part of SEBI's broader efforts to streamline processes for foreign investors and facilitate ease of doing business in India's securities market.
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