SEBI has permitted Foreign Portfolio Investors () to use digitally signed Power of Attorney (POA) for onboarding, streamlining the process. This regulatory change aims to make it easier and more efficient for foreign funds to invest in India's .
Digitally Signed POA
FPI Onboarding
⏳ Time Machine
How today’s news fits into the bigger picture
1992
SEBI Established
The Securities and Exchange Board of India (SEBI) was established as the statutory regulator for the securities market in India, bringing a structured regulatory framework to protect investors and develop the market.
1997
Depositories Act
The Depositories Act was enacted, paving the way for dematerialization of shares and electronic settlement of trades, a crucial step towards reducing physical paperwork in .
2014
FPI Regime Introduced
SEBI rationalized the foreign investment framework by merging various investor categories into a single 'Foreign Portfolio Investor' (FPI) regime, simplifying regulations but still requiring extensive documentation.
2017
KYC Norms Streamlined
SEBI streamlined Know Your Customer (KYC) norms by allowing Intermediaries to rely on KRAs (KYC Registration Agencies) for client verification, reducing redundant data submission for investors across different platforms.
Early 2026
IFSCA's Digital Push
The International Financial Services Centres Authority (IFSCA) intensified its digital-first approach for entities operating in GIFT City, encouraging paperless transactions and digital onboarding, setting a precedent for SEBI's latest move.
Today
SEBI permitted Foreign Portfolio Investors (FPIs) to use digitally signed Power of Attorney for onboarding.
What happens next?
Implementation is expected in the coming weeks, leading to more efficient FPI registrations and potentially increased foreign capital inflows over the next few months.
The Securities and Exchange Board of India (SEBI) yesterday introduced a significant regulatory change, allowing Foreign Portfolio Investors (FPIs) to utilize digitally signed Power of Attorney (POA) for their onboarding processes. This move is aimed at simplifying and expediting the entry of foreign capital into India's capital markets. Additionally, SEBI has permitted entities regulated by the International Financial Services Centres Authority (IFSCA) to access records from registered KYC Registration Agencies (KRAs). These measures collectively reduce paperwork and administrative hurdles, making India a more attractive destination for global investors and enhancing ease of doing business in the financial sector.
💭 If you're wondering…
The International Financial Services Centres Authority (IFSCA) is a unified regulatory body established by the Indian government to regulate all financial services in International Financial Services Centres (IFSCs) in India, such as GIFT City.
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