Custodians must meet 50 crore net worth as per SEBI Regulation 7, with extensions available for compliance.

Regulation 7 of the SEBI (Custodian) Regulations, 1996, mandates that custodians must have a minimum net worth of fifty crores rupees, defined as paid-up capital and free reserves at the application date. Custodians approved under specific SEBI or government guidelines may continue operating without meeting this net worth initially but must comply within a year, extendable to five years by the Board. Additionally, custodians applying under regulation 3 must meet capital adequacy requirements within one month of receiving their certificate under regulation 8.