Capital requirement: custodians must maintain prescribed net worth and meet separate capital adequacy obligations within transition periods. Custodians must maintain a net worth equal to the prescribed minimum-defined as paid-up capital plus free reserves-and must do so separately and independently of any activity-specific capital adequacy requirements. Transitional provisions allow previously approved custodians to continue operating despite shortfalls, provided they raise net worth to the required level within the Board-specified period (subject to extension). Applicants are permitted a short period after receipt of their registration certificate to meet capital adequacy obligations.