Sebi Strengthens Custodian Regulations with New Directives
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Sebi Mandates Segregation for Non-Bank Custodians, Boosts Governance & Net Worth
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News18•05-03-2026, 15:45
Sebi Mandates Segregation for Non-Bank Custodians, Boosts Governance & Net Worth
•Non-bank custodians must segregate regulated and unregulated financial services into separate Strategic Business Units (SBUs).
•Separate accounts and independent net worth requirements are mandated for these distinct business units.
•Custodians must disclose unregulated services to clients and obtain acknowledgment that Sebi will not handle grievances related to them.
•Vault requirements are relaxed for custodians not holding physical securities; governance and risk management standards are strengthened with board committees.
•Minimum net worth for custodians was raised to Rs 75 crore from Rs 50 crore in September 2025 to enhance risk management systems.