eMudhra Streamlines Digital Signatures for Foreign Investors in India

2026-02-09 economy

New Delhi, Monday, 9 February 2026.
eMudhra launched digital signatures for Foreign Portfolio Investors (FPIs) on February 9th, 2026, to expedite access to India’s capital markets. This could revolutionize how quickly foreign investors can enter the Indian market.

Simplifying Market Entry

eMudhra’s Digital Signature Certificates (DSCs) are designed to tackle the difficulties FPIs encounter concerning regulatory onboarding, authorization, and execution processes [1]. This aligns with India’s regulatory structure, promoting smooth digital workflows between custodians, brokers, fund administrators, and market infrastructure [1]. Kaushik Srinivasan, EVP at eMudhra, stated that digital trust is becoming essential for large-scale participation as India’s capital markets grow [1]. By providing FPIs with specialized DSCs, eMudhra aims to improve the efficiency and regulatory certainty for global investors entering and operating in the Indian market [1].

Broader Economic Impact

The introduction of DSCs by eMudhra is expected to foster digital transformation throughout India’s capital market value chain [1]. This aligns with efforts to improve market access and reduce geopolitical uncertainty, potentially fueling market rallies [4]. Foreign exchange traders are closely monitoring foreign portfolio inflows to determine if the rupee’s rise, which began with the U.S.-India trade deal announcement on February 3, 2026, will continue [3]. The rupee closed at 90.6550 on February 7, 2026, marking a 1% weekly increase [3].

Recent FPI Trends

After a period of significant selling, FPIs have turned into net buyers in the first week of February, injecting over ₹8,100 crore into Indian equities [4]. This shift is attributed to improved risk sentiment and a trade deal with the U.S. [4]. This contrasts with January’s figures, where FPIs withdrew ₹35,962 crore, following pullouts of ₹22,611 crore in December and ₹3,765 crore in November [4]. Despite these fluctuations, the share of US-based FPIs in India’s total foreign holdings increased to 41% in January 2026, up from 39.7% in January 2025 [8].

Market Outlook and Expert Opinions

Himanshu Srivastava from Morningstar Investment Research India noted that the recent buying indicates a growing risk appetite and renewed confidence in India’s growth prospects, supported by easing global uncertainties and optimism around India-US trade [4][5]. Vaqarjaved Khan, a senior analyst at Angel One, added that advancements in India-US trade talks and supportive measures in the Union Budget for FY26 have helped to mitigate geopolitical uncertainty and stimulate market activity [4][5]. V K Vijayakumar from Geojit Investments anticipates the rupee to stabilize and potentially appreciate to below 90 per dollar by the end of March 2026, which could further encourage FPI inflows [4][5].

Sources

digital signatures foreign investment