🟢 FINAL CIRCULAR — IN FORCE
Issued by SEBI on August 20, 2026 | Effective immediately, from August 20, 2026
SEBI Permits Digitally Signed Power of Attorney for FPI Onboarding (2026)
An FPI setting up a Custodian relationship in India has, until now, had to get a Power of Attorney notarised, apostilled, or consularised before it could be used — a process that routinely eats up days or weeks depending on where the FPI is based. SEBI's circular dated August 20, 2026 removes that bottleneck for one specific document: it now permits FPIs to execute the Power of Attorney (PoA) given to their Custodian using a digital signature under the Information Technology Act, 2000, instead of relying solely on physical attestation.
⚡ At a Glance
One document, one new option: the Custodian PoA can now be digitally signed under the IT Act, 2000, instead of notarised, apostilled, or consularised.
This is not a standalone rule — it is a targeted amendment to Para 9(B)(iv) of Part B of the FPI Master Circular (SEBI/HO/AFD/AFD-PoD2/P/CIR/P/2024/70 dated May 30, 2024), the consolidated rulebook that governs FPI KYC, registration, and onboarding requirements. SEBI has been chipping away at paper-based friction in FPI registration for several years — this circular is the latest, and a fairly narrow, addition to that list.
For custodians, DDPs, and compliance teams handling FPI onboarding, the practical takeaway is simple: a new, faster route now exists for one specific document, and it sits alongside — not instead of — the existing notarisation/apostille/consularisation route.
Why Did SEBI Decide to Accept Digitally Signed Power of Attorney?
The circular frames this change as part of a multi-year effort to digitalise the FPI registration and onboarding process. SEBI's own recital traces the sequence of steps that led here — each one removing a paper-based or physical-presence requirement from FPI onboarding.
SEBI's FPI Digitalisation Timeline
Common Application Form (CAF)
Introduced as a single form for FPI registration, PAN, bank, and
demat account opening.
Digital signatures enabled for CAF execution
Indian digital signatures permitted for executing the CAF and other registration documents.
Digital signature functionality built into the CAF portal
Seamless digital signature capability integrated directly within the CAF portal itself.
Registration based on scanned copies
FPIs no longer needed to submit originals for grant of registration in many cases.
Aug 20, 2026 — Digitally signed Power of Attorney to Custodians permitted
The latest step: notarisation, apostillisation, and consularisation of the PoA is no longer the only compliant route.
📝 In Plain English — Notarisation, Apostillisation, Consularisation
These are three different ways a foreign document gets "certified" as genuine before it can be relied on in another country — think of them as different tiers of an official stamp of authenticity. Notarisation is done by a local notary; apostillisation is a simplified international certification used between countries that are part of the Hague Apostille Convention; consularisation (needed where apostille isn't available) means getting the document verified by an embassy or consulate. All three typically involve physical paperwork, in-person visits, and real turnaround time — which is exactly what a valid digital signature can now substitute for, in this one specific case.
What Exactly Has Changed in Para 9(B)(iv) of the FPI Master Circular?
Para 9(B) of Part B of the FPI Master Circular lists the documents an FPI can submit as Proof of Address and related supporting documentation for KYC purposes. Sub-clause (iv) of that list specifically deals with a Power of Attorney that an FPI gives to its Custodian, where that PoA also specifies the FPI's address.
📝 In Plain English — What is this Power of Attorney for?
An FPI investing in India typically authorises its Custodian to act on its behalf for certain administrative and operational matters through a Power of Attorney (PoA). Where that PoA also states the FPI's registered address, it doubles up as a KYC document — which is why SEBI treats it as admissible Proof of Address, and why the format in which it's executed matters.
Before this circular, Para 9(B)(iv) recognised only one route: a PoA that was notarised and/or apostilled or consularised. The August 20, 2026 circular adds a second, parallel route — a PoA executed using a digital signature that complies with the Information Technology Act, 2000, is now equally admissible.
⚠️ Important — This Is an Addition, Not a Replacement
The circular does not withdraw the notarisation/apostille/consularisation option. FPIs and Custodians can still use that route if they prefer — the digital signature method is simply a new, optional alternative sitting alongside it.
📝 In Plain English — Digital Signature under the IT Act, 2000
A digital signature under the Information Technology Act, 2000 is a legally recognised, cryptographically secured electronic signature — not just a scanned image of a handwritten signature. It's the same underlying technology that already authenticates the CAF and other FPI registration documents on SEBI's own portal, which is why extending it to the Custodian PoA is a natural next step rather than a new concept for the FPI ecosystem.
Who Does SEBI's Digitally Signed PoA Circular Apply To?
The circular is addressed to six categories of market participants, and every one of them touches the FPI onboarding chain at some point:
🌐 FPIsExecute the PoA in favour of their Custodian.
🏦 DDPs & CustodiansAccept and verify the digitally signed PoA during onboarding.
📋 RTAs / Share Transfer AgentsRely on the PoA for records tied to FPI holdings.
🗃️ DepositoriesReflect the updated admissible document format in their processes.
📈 Stock Exchanges & Clearing CorpsNote the change as part of the broader FPI compliance framework.
🏛️ SEBI-Registered IntermediariesAll Section 12 intermediaries interfacing with FPI clients.
The circular is issued under Section 11(1) of the SEBI Act, 1992, read with Regulation 44 of the SEBI (Foreign Portfolio Investors) Regulations, 2019 — SEBI's general investor-protection and market-development powers. The circular is self-effective from its date of issue, as stated in Para 5.
Before vs After: Para 9(B)(iv) of the FPI Master Circular
Compliance Checklist
☑ Update onboarding SOPs — Custodians and DDPs should update internal checklists to recognise digitally signed PoAs as admissible alongside notarised/apostilled/consularised ones.
☑ Verify digital signature compliance — Confirm any digitally signed PoA received meets the requirements of the Information Technology Act, 2000, before accepting it in lieu of physical attestation.
☑ Brief FPI clients — Inform onboarding FPIs that a faster digital signature route now exists for the Custodian PoA, potentially shortening onboarding timelines.
☑ Retain the notarised/apostille route as fallback — Ensure existing processes for the traditional attestation method remain intact for FPIs that cannot or do not wish to use digital signatures.
☑ Cross-reference the FPI Master Circular — Note the amendment against Para 9(B)(iv), Part B of the FPI Master Circular dated May 30, 2024, in internal compliance manuals.
☑ No transition period to track — The change is effective immediately from August 20, 2026; there is no phased timeline to build into a compliance calendar.
Frequently Asked Questions
What does SEBI's August 20, 2026 circular on FPI Power of Attorney change?
It permits FPIs to execute a Power of Attorney (PoA) in favour of their Custodian, specifying address, using a digital signature under the Information Technology Act, 2000, as an alternative to the earlier requirement of notarisation, apostillisation, or consularisation.
Which SEBI provision has been amended?
Para 9(B)(iv) of Part B of the "Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors" (SEBI/HO/AFD/AFD-PoD2/P/CIR/P/2024/70 dated May 30, 2024) has been modified.
Is notarisation of the Power of Attorney still allowed?
Yes. The circular adds digital signature as an additional route; it does not withdraw the option of a notarised, apostilled, or consularised PoA. FPIs and Custodians can choose either method.
When does this circular take effect?
The circular takes effect immediately, from August 20, 2026 — the same date it was issued.
Who is affected by this circular?
FPIs, Designated Depository Participants (DDPs), Custodians, Registrars to an Issue and Share Transfer Agents, Depositories, recognized Stock Exchanges and Clearing Corporations, and all SEBI-registered intermediaries under Section 12 of the SEBI Act, 1992.
Why did SEBI make this change?
It is part of SEBI's ongoing effort to digitalise FPI onboarding. Accepting a digitally signed PoA removes the time and cost of notarisation, apostillisation, or consularisation, steps that often involve foreign jurisdictions and can meaningfully delay FPI registration.
Under what legal authority was this circular issued?
SEBI issued the circular under Section 11(1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 44 of the SEBI (Foreign Portfolio Investors) Regulations, 2019.
What should Custodians and DDPs do now?
Update internal onboarding checklists and KYC verification processes to accept digitally signed PoAs executed in accordance with the IT Act, 2000, alongside the existing notarised/apostilled/consularised format.
CorpLawUpdates Analysis
On paper this is a one-clause amendment, but it closes a genuine friction point in FPI onboarding. Notarisation, apostillisation, and consularisation are not quick administrative formalities — they typically require a physical visit to a notary or consulate in the FPI's home jurisdiction, and turnaround time varies considerably by jurisdiction. By making digital signature an equally valid route for just this one document, SEBI has removed a comparatively slow step relative to how simple the underlying document actually is.
The compliance challenge here is less about interpreting the rule and more about operational readiness. Custodians and DDPs will need to satisfy themselves, document by document, that a digital signature genuinely meets Information Technology Act, 2000 standards before treating a PoA as compliant — this is a verification exercise, not a rubber stamp, and firms that haven't already built digital-signature verification into their KYC workflows (for other CAF-related documents) will need to extend that capability here too.
📝 Key Takeaway
This is a document-format fix, not a policy change — no FPI category, investment limit, or reporting requirement is affected.
It's also worth noting what this circular does not do. It doesn't touch any other document category under Para 9(B) of the FPI Master Circular, and it doesn't change any FPI category, investment limit, or reporting requirement. Practitioners should resist reading this as a broader liberalisation signal beyond what the text supports — it's a precise, single-clause fix.
Looking ahead, this fits a pattern visible in the circular's own recital: SEBI has been digitalising discrete pieces of the FPI onboarding stack — CAF, digital signatures for CAF execution, scanned-copy registration, and now the Custodian PoA — one document category at a time rather than through a single sweeping framework. Whether that pattern continues with other physically-attested KYC documents remains to be seen, but it is a trend worth watching for FPI compliance teams.
Source: SEBI Circular "Acceptance of digitally signed Power of Attorney from FPIs," Ref. No. HO/19/34/14(8)2026-AFD-POD2/I/19251/2026, dated August 20, 2026. Signed by Siddharth K Dachalwal, Deputy General Manager, SEBI. Available at www.sebi.gov.in under "Legal — Circulars." Contact: Tel 022-2644 9123, Email
[email protected].
This article is for informational and educational purposes only and does not constitute legal or regulatory advice. Verify with primary regulatory sources before acting.
