Custodian capital requirements mandate minimum net worth independent of other regulated activities, with transitional periods for existing custodians. Custodians must maintain a minimum net worth of seventy-five crore rupees, separately and independently from any capital adequacy requirements applicable ... Summary
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Custodian capital requirements mandate minimum net worth independent of other regulated activities, with transitional periods for existing custodians.
Custodians must maintain a minimum net worth of seventy-five crore rupees, separately and independently from any capital adequacy requirements applicable to each other activity they undertake. Net worth comprises paid-up capital and free reserves as of the application date. Custodians registered before commencement of the 2025 amendment have three years from commencement to reach the minimum, independently of those other requirements. Custodians previously approved under the specified mutual fund or foreign institutional investor frameworks may continue operating without the prescribed net worth, but must attain it within one year from commencement of the custodian regulations. The Board may extend that period to a maximum of five years.
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