Regulator updates custodian rules: adds "physical" custody, raises net-worth to 75 crore, strengthens governance, risk, reporting obligations

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....The regulator amends custodian regulations to take effect six months after Gazette notification, inserting "physical" custody, raising the net-worth threshold from fifty to seventy-five crore rupees (with a three-year transition for existing registrants) and requiring net worth to be maintained separately from activity-specific capital adequacy. Custodians may also offer other financial services subject to conditions if not tied to a banking group. New provisions impose specified obligations on governance, risk management, scalable infrastructure, orderly wind-down planning and cooperation with the regulator, and expand conduct, disclosure, internal controls, client grievance, fitness-and-proper and reporting duties in the schedule.....