Motilal Oswal gets SEBI nod to launch custodian service
This will allow the company to offer securities safekeeping, trade settlement, corporate action processing and regulatory reporting for institutional clients
Motilal Oswal Financial Services Ltd, a leading player in the Indian financial sector, has secured SEBI approval to establish a custodial services firm, Motilal Oswal Custodial Services Private Ltd (MOCSPL). This marks MOCSPL's entry into a highly regulated industry that safeguards securities and facilitates trade settlement, corporate action processing, and regulatory reporting for a wide array of clients including alternative investment funds, portfolio management services, mutual funds and pension funds.
SEBI's nod makes MOCSPL one of the select few institutions authorized to hold and service institutional assets in India.
The decision to venture into custodial services comes amid the burgeoning growth of institutional asset pools in India, driven by alternative investment funds, portfolio managers and foreign investors. Motilal Oswal, the Group CEO & Co-founder of Motilal Oswal Financial Services, emphasized the importance of a robust domestic market infrastructure that adheres to stringent global standards. This infrastructure would underpin the rapid expansion of institutional capital in the Indian market.
To stay ahead in the competitive landscape, MOCSPL plans to emphasize technology-driven operational excellence and tailor services to the unique needs of its diverse clientele. The company anticipates commencing operations by the end of 2026, pending the fulfillment of operational readiness criteria.
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