THEBUSINESSBYTES
BUREAU
MUMBAI,
SEPTEMBER 23, 2026
Motilal Oswal
Financial Services Limited (MOFSL) has strengthened its institutional financial
services franchise with its wholly owned subsidiary, Motilal Oswal Custodial
Services Private Limited (MOCSPL), securing approval from the Securities and
Exchange Board of India (SEBI) to operate as a Custodian of Securities under
the SEBI (Custodian) Regulations, 1996.
The regulatory
approval marks a significant expansion of the group’s institutional offerings,
enabling MOCSPL to provide a comprehensive suite of custody and post-trade
services, including securities safekeeping, trade settlement, corporate action
processing and regulatory reporting.
The new business will
cater to a broad institutional client base comprising foreign portfolio
investors, alternative investment funds, portfolio managers, mutual funds,
insurance companies, pension funds and other domestic institutional investors.
Custody services are
among the most closely regulated activities in India’s securities market,
requiring significant financial strength, robust technology infrastructure,
independent operating systems and stringent audited controls. With the SEBI
approval, MOCSPL joins the relatively limited group of institutions authorised
to provide custody and servicing of institutional assets in the Indian market.
The entry into the
custody business further broadens Motilal Oswal’s institutional ecosystem,
which already spans institutional equities, wealth management, asset
management, private wealth, investment banking, alternative investments and
home finance.
The move is expected
to enable institutional clients to access execution, custody and post-trade
services through a single relationship with the group, creating an integrated
institutional services proposition.
Commenting on the
development, Motilal Oswal, Group CEO and Co-founder of Motilal Oswal Financial
Services, said that India’s institutional asset pools are expanding rapidly,
with alternative investment funds, portfolio managers and foreign investors increasing
their participation in the country’s capital markets.
“Custody forms the backbone of this growth.
Our entry into this sector is driven by a strong belief that institutional
capital needs a solid domestic market infrastructure that meets the highest global
standards,” Oswal said.
He added that the new
business would build on the operational discipline and regulatory focus that
the group has developed over nearly four decades in the financial services
industry.
MOCSPL said it will
focus on deepening its service capabilities, with particular emphasis on
operational precision, responsiveness and transparency — key requirements for
institutional investors managing complex portfolios and transactions.
“We will build the business with technology at its core and with teams that understand the specific requirements of alternative funds, offshore investors and domestic institutions alike,” Oswal added.
The company plans to commence operations in the fourth quarter of calendar 2026, subject to completion of the requisite operational readiness requirements.
