SEBI Sets Criteria for Custodian Certificates Under Custodian Regulations, 1996: Capital, Infrastructure, Staff, and Legal Standards

The Securities and Exchange Board of India (SEBI) outlines criteria for granting certificates to custodians under the Custodian Regulations, 1996. The Board evaluates whether applicants meet capital requirements, possess necessary infrastructure, and have competent staff. Applicants must also have prepared operational manuals and maintain arm's length relationships with other businesses. Consideration is given to the applicant's legal history, including any past certificate refusals, involvement in securities market litigation, or convictions for offenses. The applicant must be deemed fit and proper, and the certificate's issuance should benefit investors. Only corporate bodies are eligible to apply.