The license will assist the bank to vie with its arch rivals including Goldman Sachs and Bank of America Merrill Lynch in advisory and wealth management businesses, reports the Economic Times.
The newspaper said citing the sources familiar that the bank has received in-principle approval. To become a full-fledged bank, the firm will have to bring all Para-banking activities, including private banking, under the bank.
A Morgan Stanley spokesman confirmed that it has got the license, but refused to provide details of its India plans, although the bank may not venture into locally popular banking activities such as corporate or retail loans.
During the financial crisis of 2008, Morgan Stanley, along with Goldman, converted into a bank holding company in the US, which helped them to survive the crisis with funds from the US Federal Reserve, but reduced risk and leverage.
Due to strong competition in India, most global banks, such as JPMorgan and Bank of America remained away from consumer banking in India.
