Net worth requirement increase for custodians mandates higher capitalization and separate compliance from capital adequacy rules. Amendments raise the custodian net worth requirement to a new minimum of seventy-five crore rupees, require that net worth be maintained separately and independently of any capital adequacy requirements for each activity, and provide a three year transition for existing registrants. They add a proviso allowing custodians to render financial services subject to Board conditions, introduce Reg. 19B imposing obligations on governance, risk management, infrastructure, and winding down frameworks, and expand the Third Schedule with detailed conduct, compliance and client protection duties.
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Net worth requirement increase for custodians mandates higher capitalization and separate compliance from capital adequacy rules.
Amendments raise the custodian net worth requirement to a new minimum of seventy-five crore rupees, require that net worth be maintained separately and independently of any capital adequacy requirements for each activity, and provide a three year transition for existing registrants. They add a proviso allowing custodians to render financial services subject to Board conditions, introduce Reg. 19B imposing obligations on governance, risk management, infrastructure, and winding down frameworks, and expand the Third Schedule with detailed conduct, compliance and client protection duties.
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