Sebi eases FPI onboarding with digital power of attorney
In a progressive move, the capital markets regulator has allowed foreign investors to adopt digital signatures, streamlining the onboarding experience. This change eliminates notarisation and apostillisation for power of attorney documents, thus accelerating onboarding times and enhancing regulatory processes. The goal is to invite more international capital into the Indian market landscape.
Mumbai: The Securities and Exchange Board of India (Sebi) has simplified the onboarding process for foreign portfolio investors (FPIs) by allowing them to use digitally signed power of attorney (PoA) documents, according to a report. Sebi's move aims to eliminate the need for notarisation, apostillisation or consularisation of these documents, thus significantly reducing the time taken to onboard FPIs.
During interactions with foreign investors, Sebi highlighted that notarisation and apostillisation take considerable time. This digital PoA measure is part of Sebi's broader effort to leverage technology to streamline regulatory processes across the capital markets. By adopting more digital processes, Sebi intends to bring down the overall time required for FPI onboarding.
The new rule, which came into effect immediately, is expected to provide significant operational relief to foreign investors and intermediaries, as Sebi seeks to make market access simpler and more efficient for global capital.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
