WHAT IS CUSTODIAN AND ELIGIBILITY OF CUSTODIAN

"    custodian of securities" means any person who carries on or proposes to carry on the business of providing             custodial services;

    custodial services" in relation to securities of a client or gold or gold-related instruments held by a mutual fund or      title deeds of real estate assets held by a real estate mutual fund scheme in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 means, safekeeping of such securities or gold or gold-       related instruments or title deeds of real estate assets and providing services incidental thereto, and includes—            

    maintaining accounts of securities or gold or gold-related instruments or title deeds of real estate assets of a              client; undertaking activities as a Domestic Depository, collecting the benefits or rights accruing to the client in          respect of securities or gold or gold-related instruments or title deeds of real estate assets; keeping the                     client informed of the actions taken or to be taken by the issuer of securities, having a bearing on the benefits             or rights accruing to the client; and maintaining and reconciling records of the services.

Any person proposing to carry on business as custodian of securities shall make an application to the Board for grant of certificate in form A

(I) Application fee Rs. [5, 00,000]

(ii) Registration fee Rs. [50, 00,000]

(iii) Annual fee Rs.10, 00,000 or [0.0005] per cent] of the "assets

Capital requirement: shall be a net worth of a minimum of rupees fifty crores

"Net worth" means the paid-up capital and the free reserves as on the date of the application.

Renewal of certificate: A custodian of securities, desirous of having its certificate renewed shall make an application to the Board for renewal of the certificate in Form A, not less than three months before the expiry of its period of validity