<p>Markets regulator Securities and Exchange Board of India (SEBI) on Wednesday proposed changes to the regulatory framework for custodians, including doubling their minimum net worth requirement.</p><p>Custodians provide services such as safekeeping of assets and maintenance of securities accounts for clients like foreign portfolio investors, mutual funds, and portfolio managers. </p><p>Currently, India has 17 registered custodians.</p>.SEBI issues Rs 52 cr demand notice to two entities in RHFL illegal fund diversion case.<p>Assets under their custody jumped to 278.5 trillion rupees by September 2024 from 2.7 trillion rupees in 2002.</p><p>Given the substantial growth, the SEBI has proposed to bring regulations in line with those for stock brokers.</p><p>It has proposed that custodians should have a minimum net worth of 1 billion rupees ($11.9 million) against 500 million rupees currently.</p><p>SEBI has also proposed a framework for orderly winding down of these firms, in line with that for stock brokers.</p><p>It has suggested new frameworks for business continuity planning and disaster recovery for custodians.</p><p>Other proposals include doing away with the requirement for vaults for custodians who do not hold physical assets.</p><p>The regulator has sought public comments on the proposals by November 28.</p>
<p>Markets regulator Securities and Exchange Board of India (SEBI) on Wednesday proposed changes to the regulatory framework for custodians, including doubling their minimum net worth requirement.</p><p>Custodians provide services such as safekeeping of assets and maintenance of securities accounts for clients like foreign portfolio investors, mutual funds, and portfolio managers. </p><p>Currently, India has 17 registered custodians.</p>.SEBI issues Rs 52 cr demand notice to two entities in RHFL illegal fund diversion case.<p>Assets under their custody jumped to 278.5 trillion rupees by September 2024 from 2.7 trillion rupees in 2002.</p><p>Given the substantial growth, the SEBI has proposed to bring regulations in line with those for stock brokers.</p><p>It has proposed that custodians should have a minimum net worth of 1 billion rupees ($11.9 million) against 500 million rupees currently.</p><p>SEBI has also proposed a framework for orderly winding down of these firms, in line with that for stock brokers.</p><p>It has suggested new frameworks for business continuity planning and disaster recovery for custodians.</p><p>Other proposals include doing away with the requirement for vaults for custodians who do not hold physical assets.</p><p>The regulator has sought public comments on the proposals by November 28.</p>