According to reports from The Economic Times, Motilal Oswal Custodial Services Private Ltd (MOCSPL), a wholly owned subsidiary of Motilal Oswal Financial Services Ltd (MOFSL), has received approval from the Securities and Exchange Board of India (SEBI) to act as a Custodian of Securities under the SEBI (Custodian) Regulations, 1996. This regulatory clearance represents a significant milestone for the financial services group's expansion into institutional custody services. The approval was officially communicated to the stock exchanges on September 23, 2026, as per the latest regulatory filing under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Custody is among the most stringently regulated activities in the Indian securities market, requiring substantial net worth, independent systems and audited operational controls, making this approval particularly significant for the company's institutional services expansion.
As reported by The Economic Times, the approval enables the company to offer comprehensive institutional services including safekeeping of securities, trade settlement, corporate action processing, and regulatory reporting. The licence specifically covers institutional clients across multiple sectors, including alternative investment funds (AIFs), portfolio management services (PMS), mutual funds, insurance companies and pension funds, among others. This broad scope positions the company to serve a diverse range of institutional investors requiring secure custody solutions. The approval places MOCSPL among a small set of institutions authorised to hold and service institutional assets in India, as custody represents one of the most stringently regulated activities in the Indian securities market.
According to The Economic Times, this regulatory approval represents a strategic expansion for Motilal Oswal Financial Services into the institutional custody segment. The licence under the SEBI (Custodian) Regulations, 1996 provides the necessary framework for the company to offer secure custody services to institutional clients, potentially strengthening its position in the competitive financial services market. The approval demonstrates SEBI's confidence in the group's operational capabilities and compliance standards for institutional custody operations. As per Motilal Oswal Financial Services, this approval enables the group to offer execution, custody and post-trade servicing within a single institutional relationship, extending their institutional franchise across institutional equities, wealth management, asset management, private wealth, investment banking, alternatives and home finance. The company plans to commence operations in the last quarter of 2026, subject to completion of operational readiness requirements.
Mr Motilal Oswal, Group CEO & Co-founder of Motilal Oswal Financial Services, emphasized the strategic importance of this development, stating that "India's institutional asset pools are rapidly expanding, with alternative investment funds, portfolio managers, and foreign investors all increasing their footprint in the markets. Custody forms the backbone of this growth." He highlighted that the entry is driven by a strong belief that "institutional capital needs a solid domestic market infrastructure that meets the highest global standards." The company plans to commence operations in the last quarter of 2026, subject to completion of regulatory requirements, with operations built on technology at its core and teams that understand the specific requirements of alternative funds, offshore investors and domestic institutions. As per The Economic Times, Oswal noted that "This is an infrastructure built on the operational discipline and regulatory rigor our group has maintained for almost 40 years in the industry."
This regulatory approval significantly strengthens Motilal Oswal Financial Services' institutional services value chain, enabling the group to offer comprehensive institutional services across their existing business segments. The company will prioritize deepening its service offerings to meet institutional clients' demands for precision, swift responsiveness, and transparency in daily operations. As per The Economic Times, the company will focus on operational excellence to clearly distinguish itself as a leading competitor in the institutional custody market. The approval is valid continuously from the date of grant, subject to compliance with the SEBI (Custodian) Regulations, 1996 and ongoing regulatory requirements, positioning the group to serve the rapidly expanding institutional asset management sector in India.
