(1) These regulations may be called the 2[Securities and Exchange Board of India (Custodian) Regulations, 1996].
(2) They shall come into force on the date of their publication in the Official Gazette.
Definitions.
2. In these regulations unless the context otherwise requires:—
(a) "Act" means the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(b) "certificate" means a certificate of registration granted by the Board under these regulations;
(c) "client" means any person who has entered into an agreement with a 3[custodian] to avail of custodial services provided by the 4[custodian];
(d) "5[custodian]" means any person who carries on or proposes to carry on the business of providing custodial services;
6[(e)"custodial services" in relation to securities 7[or goods] of a client or gold or gold related instruments held by a mutual fund or title deeds of real estate assets 2 Substituted for the title “Securities and Exchange Board of India (Custodian of Securities) Regulations, 1996” by the Securities and Exchange Board of India (Custodian of Securities) (Amendment) Regulations, 2018, w.e.f. 1-1-2019.
3 Substituted ibid for the words “custodian of securities”.
4 Substituted for the words “custodian of securities”by the Securities and Exchange Board of India (Custodian of Securities) (Amendment) Regulations, 2018, w.e.f. 1-1-2019.
5 Substituted for the words “custodian of securities” by the Securities and Exchange Board of India (Custodian of Securities) (Amendment) Regulations, 2018, w.e.f. 1-1-2019.
6Substituted by the SEBI (Custodian of Securities) (Amendment) Regulations, 2008, w.e.f. 4-7- 2008. Prior to substitution, clause (e), as amended by SEBI (Custodian of Securities) (Amendment) Regulations, 2006, w.e.f. 12-1- 2006, read as under:
"(e) "custodial services" in relation to securities of a client or gold or gold related instruments held by a mutual fund or title deeds of real estate assets held by a real estate mutual fund in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 means, safe keeping of such securities or gold or gold related instruments and providing services incidental thereto, and includes—
(i) maintaining accounts of securities or gold or gold related instruments of a client;
(ii) collecting the benefits or rights accruing to the client in respect of securities or gold or gold related instruments;
(iii) keeping the client informed of the actions taken or to be taken by the issuer of securities, having a bearing on the benefits or rights accruing to the client; and
(iv) maintaining and reconciling records of the services referred to in sub-clause (i) to (iii);
Prior to this amendment, clause (e) read as under:
held by a real estate mutual fund scheme in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 means, 8[the] safekeeping of such securities 9[or goods] or gold or gold related instruments or title deeds of real estate assets and providing services incidental thereto, and includes—
(i) maintaining accounts of securities 10[or goods] or gold or gold related instruments or title deeds of real estate assets of a client;
11[(ia) undertaking activities as a Domestic Depository in terms of the Companies (Issue of Indian Depository Receipts) Rules, 2004;]
(ii) collecting the benefits or rights accruing to the client in respect of securities 12[or goods] or gold or gold related instruments or title deeds of real estate assets;
(iii) keeping the client informed of the actions taken or to be taken by the issuer of securities, having a bearing on the benefits or rights accruing to the client;
13[(iiia) keeping the client informed of the actions taken or to be taken with respect to the goods held on its behalf;] and
(iv) maintaining and reconciling records of the services referred to in subclauses (i) to 14[(iiia)];]
(f) "custody account" means an account of a client maintained by a 15[custodian] in respect of securities;
(g) 16[* * *]
(e) "custodial services" in relation to securities means, safe keeping of securities of a client and providing services incidental thereto, and includes—
(i) maintaining accounts of securities of a client;
(ii) collecting the benefits or rights accruing to the client in respect of securities;
(iii) keeping the client informed of the actions taken or to be taken by the issuer of securities, having a bearing on the benefits or rights accruing to the client; and (v) maintaining and reconciling records of the services referred to in sub-clause (i) to (iii);"
7 Inserted by the Securities and Exchange Board of India (Custodian of Securities) (Amendment) Regulations, 2018, w.e.f. 1-1-2019.
8 Inserted ibid.
9 Inserted by the Securities and Exchange Board of India (Custodian of Securities) (Amendment) Regulations, 2018, w.e.f. 1-1-2019.
10 Inserted ibid.
11 Inserted by the SEBI (Facilitation of Issuance of Indian Depository Receipts) (Amendment) Regulations, 2009 with effect from 19-6-2009.
12 Inserted by the Securities and Exchange Board of India (Custodian of Securities) (Amendment) Regulations, 2018, w.e.f. 1-1-2019.
13 Inserted ibid.
14 Substituted for “(iii)” by the Securities and Exchange Board of India (Custodian of Securities) (Amendment) Regulations, 2018, w.e.f. 1-1-2019.
15 Substituted ibid for the words “custodian of securities”.
16 Omitted by the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, w.e.f. 27-9-2002. Prior to its omission, clause (g) read as under, ‘(g) “enquiry officer” means an enquiry officer appointed by the Board, under regulation 29;”
(h) "Form" means any of the forms set out in the First Schedule;
17[(ha) ‘goods’ means the goods notified by the Central Government under clause
(bc) of section 2 of the Securities contracts (Regulation) Act, 1956 and forming the underlying of any commodity derivative contract;]
(i) "inspecting officer" means an inspecting officer appointed by the Board under regulation 21;
(j) "Schedule" means a Schedule annexed to these regulations;
18[(k) "securities" shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956.]
CHAPTER II REGISTRATION OF CUSTODIANS OF SECURITIES Application for grant of certificate