Skip to content

Kotak Mahindra Bank Issues India’s First Fully Digital FPI Licence

9 February 20261 min read
BANKING & FINANCEKotak MahindraBank IssuesIndia’s First FullyDigital FPI Licence9 February 2026safalsetu.com

Why in the news

In February 2026 Kotak Mahindra Bank (KMBL) onboarded a foreign portfolio investor with no paper and no wet signatures.

Key facts

  • Milestone: first custodian issuing an FPI licence through e-signature onboarding.
  • Count: its first two FPI licences were issued this way.
  • Framework: SEBI’s unified digital workflow, in place since January 2026.
  • Channel: the FPI Common Application Form (CAF) portal.
  • Legal condition: DSCs from Indian certifying authorities, per the IT Act, 2000.

Significance

  • Easier business for overseas investors and paperless compliance.

Exam angle

  • Regulator behind the workflow: SEBI.
  • Abbreviations: FPI, DSC, CAF.

Test yourself

1. Which bank became India's first custodian to complete FPI onboarding entirely through e-signatures in February 2026?

Kotak Mahindra Bank is named as the first custodian.

2. Through which portal does SEBI's unified digital FPI workflow operate?

The workflow runs through the FPI CAF portal.

3. Under SEBI's directions, DSCs used in the digital FPI process must comply with which Act?

DSCs must follow the Information Technology Act, 2000.