Schedule - III - Code of Conduct

Custodian must ensure integrity, fairness, client confidentiality, proper asset safekeeping, transparent accounting, governance and regulatory compliance

The provisions require a custodian to maintain high standards of integrity, fairness and professionalism; promptly distribute income to clients; account for movements of securities, cash and goods with full audit trails; maintain adequate infrastructure, documented procedures and electronic backups; preserve client confidentiality; facilitate tracing or duplication of title documents; cooperate with other market entities; keep arm's-length relations with other businesses; exercise due diligence in safekeeping assets; avoid undisclosed investment advice; comply with applicable laws, depository and clearing rules; refrain from unfair competition or misstatements; implement corporate governance, client grievance redressal, internal controls, fit-and-proper personnel, cooperation with the regulator, and empower the compliance officer.