Motilal Oswal Group Gets SEBI Custodian Licence, Plans Operations in Q4 2026
Motilal Oswal Financial Services Ltd (MOFSL) has announced that its wholly owned subsidiary, Motilal Oswal Custodial Services Private Limited (MOCSPL), has received approval from the Securities and Exchange Board of India (SEBI) to act as a Custodian of Securities.
The approval was granted on September 23, 2026, under the SEBI (Custodian) Regulations, 1996.
The development expands MOFSL’s institutional financial-services offering into securities custody and post-trade servicing.
What Does the SEBI Approval Mean?
With the custodian licence, MOCSPL can provide services such as:
- Safekeeping of securities
- Trade settlement
- Corporate action processing
- Regulatory reporting
- Custody and related services for institutional clients
The company said its potential client base will include alternative investment funds (AIFs), portfolio managers, mutual funds, insurance companies, pension funds and other institutional investors.
Custody services form an important part of the institutional securities market because they involve the safekeeping and servicing of client assets after trades are executed.
Expands Motilal Oswal’s Institutional Services
The new business is expected to complement MOFSL’s existing institutional franchise, which includes institutional equities, investment banking, wealth management, asset management, private wealth and alternative investments.
With custody services added to the platform, the group aims to provide institutional clients with execution, custody and post-trade servicing through a broader institutional relationship.
The company said it plans to focus on technology, operational efficiency and servicing requirements of alternative funds, offshore investors and domestic institutions.
Operations Expected to Begin in Q4 2026
MOCSPL is expected to commence operations in the last quarter of calendar year 2026, subject to completion of the required operational-readiness processes.
The SEBI approval is valid continuously from the date of grant, subject to compliance with the applicable SEBI Custodian Regulations and ongoing regulatory requirements.
Management Commentary
Motilal Oswal, Group CEO & Co-founder of Motilal Oswal Financial Services, said the expansion into custody services is aimed at supporting the growing institutional asset pool in India.
He highlighted the importance of operational discipline, regulatory compliance and technology in building the custody business.
The company also said institutional clients require precision, responsiveness and transparency in their day-to-day operations and that it intends to build the business around these requirements.
Why This Matters for Investors
For MOFSL, the SEBI custodian approval represents an expansion of its institutional financial-services platform.
The key points investors may track going forward are:
- Launch of MOCSPL operations in Q4 2026
- Client acquisition in the institutional custody business
- Growth in assets under custody
- Revenue contribution from the new business
- Cross-selling opportunities with MOFSL’s existing institutional businesses
- Technology and operational investments required to scale the platform
The announcement itself does not disclose any immediate revenue or profit contribution from the new custody business. The financial impact will become clearer after the business becomes operational and begins onboarding clients.
About Motilal Oswal Financial Services
Motilal Oswal Financial Services operates across wealth management, capital markets, institutional broking, investment banking, asset management, alternatives, private wealth, housing finance and related financial services.
According to the company’s release, MOFSL has 12,400+ employees, serves 15.5 million+ clients through its distribution network across more than 550 cities, and has Assets Under Advice of approximately ₹6.6 lakh crore.
Key Takeaway
The SEBI custodian licence allows Motilal Oswal to add securities custody and post-trade services to its institutional offering. The next important milestones will be the operational launch, client onboarding, and the eventual financial contribution from the new business.
