Source: BS
Context:
In February 2026, Kotak Mahindra Bank Limited (KMBL) became the first custodian in India to issue a Foreign Portfolio Investor (FPI) licence and complete the entire onboarding process digitally using e-signatures.
What is the significance?
This marks a major step in:
- Digitisation of capital market processes
- Ease of doing business for foreign investors
- Faster, paperless regulatory compliance
It reflects India’s shift towards end-to-end digital financial infrastructure.
Key Details of the Digital FPI Process
1. SEBI’s Unified Digital Workflow
- Implemented by Securities and Exchange Board of India in January 2026
- Enables:
- Digital Signature Certificates (DSCs)
- Electronic signatures (e-signatures)
- Operates through the FPI Common Application Form (CAF) portal
2. Legal Compliance
- As per SEBI directions:
- DSCs must be issued by Indian certifying authorities
- Must comply with the Information Technology Act, 2000
3. Kotak Mahindra Bank’s Milestone
- Issued its first two FPI licences using:
- Fully digitally signed documents
- Eliminated:
- Physical paperwork
- Wet signatures
- Reduced onboarding time and operational friction
