FPIs: no investor group details for those investing only in Government Securities, and a digitally signed Power of Attorney to custodians is now accepted
Two SEBI circulars ease compliance for Foreign Portfolio Investors. From 7 September 2026, FPIs investing only in Government Securities — by any route — need not furnish investor group details. From 20 August 2026, a Power of Attorney given by an FPI to its custodian may be executed with a digital signature under the Information Technology Act, 2000, without notarisation, apostille or consularisation.
Key facts
In 30 seconds
- Circular dated 7 September 2026: the exemption from furnishing investor group details now covers every FPI investing only in Government Securities.
- Earlier wording covered only FPIs investing exclusively in Government Securities under the Fully Accessible Route.
- Reason given: RBI’s circular of 5 June 2026 withdrew the concentration limit for FPIs investing in Government Securities through the General Route.
- Circular dated 20 August 2026: a digitally signed Power of Attorney from an FPI to its custodian is acceptable.
- The notarised and/or apostilled or consularised Power of Attorney remains an alternative.
- Depositories, custodians and DDPs are to change their systems.
हिंदी में सार
SEBI के दो सर्कुलर से FPI को राहत मिली है। 7 सितंबर 2026 से सिर्फ़ सरकारी प्रतिभूतियों में निवेश करने वाले सभी FPI को investor group का ब्योरा नहीं देना होगा — पहले यह छूट केवल Fully Accessible Route वालों को थी। 20 अगस्त 2026 से FPI अपने कस्टोडियन को Information Technology Act, 2000 के तहत डिजिटल हस्ताक्षर वाला Power of Attorney दे सकते हैं; नोटरी, apostille या consularisation ज़रूरी नहीं।
Before and now
FPIs that invest exclusively in Government Securities under the Fully Accessible Route.
All FPIs investing only in Government Securities.
Two changes to the FPI Master Circular
SEBI has amended its Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors (dated 30 May 2024) through two circulars — one on 20 August 2026 and one on 7 September 2026.
| Circular | Provision changed | Effect | In force |
|---|---|---|---|
| 7 September 2026 | Sub-para under Para 1 of Part A | FPIs investing only in Government Securities need not furnish investor group details | Immediate effect |
| 20 August 2026 | Para 9(B)(iv) of Part B | Power of Attorney to custodians may be executed using a digital signature | 20 August 2026 |
Investor group details
A SEBI circular of 10 September 2025 had inserted a line in the Master Circular: FPIs that invest exclusively in Government Securities under the Fully Accessible Route need not furnish investor group details.
The circular of 7 September 2026 explains what has changed since. The Reserve Bank of India, by a circular dated 5 June 2026, withdrew the requirement for FPIs investing in Government Securities through the General Route to comply with the prescribed concentration limit. SEBI says that, as a result, identifying the investor group of an FPI investing only in Government Securities is no longer relevant. The line now reads:
“FPIs investing only in Government Securities shall not be required to furnish investor group details.”
Depositories, custodians and Designated Depository Participants are advised to make the necessary changes in their systems.
Power of Attorney with a digital signature
The FPI Master Circular lists the KYC requirements for FPIs and the documents admissible as proof of address. One of them is the Power of Attorney given by the FPI to its custodian, specifying the address.
The circular of 20 August 2026 notes the steps SEBI has already taken to digitalise FPI registration: the Common Application Form, use of Indian digital signatures for the form and other registration documents, digital signing within the form’s portal, and registration on the basis of scanned copies. As a further step, SEBI has decided to permit a Power of Attorney digitally signed by an FPI in accordance with the Information Technology Act, 2000.
SEBI says this removes the need for notarisation, apostillisation or consularisation of the Power of Attorney, and cuts the overall time taken to on-board an FPI. Para 9(B)(iv) now accepts either of the following:
- a Power of Attorney given by the FPI to custodians specifying the address, duly notarized and/or apostilled or consularised; or
- a Power of Attorney given by the FPI to custodians specifying the address, executed using a digital signature under the Information Technology Act, 2000.
What FPIs and custodians should do
An FPI that invests only in Government Securities need not submit investor group details, whichever route it uses. An FPI applicant can execute the custodian’s Power of Attorney digitally; custodians and DDPs should accept it as proof of address.
Questions and answers
Which FPIs need not furnish investor group details?
FPIs investing only in Government Securities. The earlier wording limited this to FPIs investing exclusively in Government Securities under the Fully Accessible Route; the circular of 7 September 2026 removes that limitation.
Why did SEBI widen the exemption?
RBI, by a circular dated 5 June 2026, withdrew the requirement for FPIs investing in Government Securities through the General Route to comply with the prescribed concentration limit. SEBI says the requirement to identify the investor group is therefore no longer relevant.
Can an FPI sign the custodian’s Power of Attorney digitally?
Yes. From 20 August 2026, a Power of Attorney given by an FPI to custodians specifying the address may be executed using a digital signature in accordance with the Information Technology Act, 2000.
Is a notarised or apostilled Power of Attorney still accepted?
Yes. The modified para 9(B)(iv) keeps the Power of Attorney that is duly notarized and/or apostilled or consularised as one option, and adds the digitally signed Power of Attorney as the other.
Published 7 September 2026. Updated 7 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.