India's first fully digital FPI licence has been issued by Kotak Mahindra Bank

February 09, 2026
Current Context: On 6 February 2026, Kotak Mahindra Bank became the first custodian to issue India’s fully digital Foreign Portfolio Investor (FPI) licence.
India's first fully digital FPI licence has been issued by Kotak Mahindra Bank
  • This breakthrough was enabled by SEBI’s unified digital workflow, operational since January 2026, which allows end‑to‑end online processing with e‑signatures and eliminates physical paperwork.
  • The digital licence ensures faster onboarding, transparency, and reduced compliance costs for overseas investors.
  • It also aligns with India’s broader push for ease of doing business and capital market reforms.
  • By streamlining foreign investment entry, the move is expected to boost investor confidence, attract more global capital, and strengthen India’s position as a modern financial hub.

Question:

Q.1 Which bank became the first custodian to issue India’s fully digital Foreign Portfolio Investor (FPI) licence in February 2026?
a) HDFC Bank
b) ICICI Bank
c) State Bank of India
d) Kotak Mahindra Bank

Answer: d) On 6 February 2026, Kotak Mahindra Bank became the first custodian to issue India’s fully digital FPI licence, marking a milestone in capital market digitization.

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