Scribd Logo
Upload

Welcome to Scribd!

  • 8 views

    202005142154043155geeta CUSTODIAN

    Uploaded by

    Rishita Singh
    The document discusses custodial services in the Indian financial system. It defines custodians as financial institutions that hold and manage a client's securities and assets on their behalf. It then describes some of India's major custodians like Stock Holding Corporation of India and services provided by Kotak Mahindra Bank. Finally, it lists several custodians registered with SEBI and distinguishes between the roles of a custodian and depository.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    202005142154043155geeta CUSTODIAN

    Uploaded by

    Rishita Singh
    8 views16 pages
    The document discusses custodial services in the Indian financial system. It defines custodians as financial institutions that hold and manage a client's securities and assets on their behalf. It then describes some of India's major custodians like Stock Holding Corporation of India and services provided by Kotak Mahindra Bank. Finally, it lists several custodians registered with SEBI and distinguishes between the roles of a custodian and depository.

    Original Title

    202005142154043155geeta-CUSTODIAN

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses custodial services in the Indian financial system. It defines custodians as financial institutions that hold and manage a client's securities and assets on their behalf. It then describes some of India's major custodians like Stock Holding Corporation of India and services provided by Kotak Mahindra Bank. Finally, it lists several custodians registered with SEBI and distinguishes between the roles of a custodian and depository.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    8 views16 pages

    202005142154043155geeta CUSTODIAN

    Uploaded by

    Rishita Singh
    The document discusses custodial services in the Indian financial system. It defines custodians as financial institutions that hold and manage a client's securities and assets on their behalf. It then describes some of India's major custodians like Stock Holding Corporation of India and services provided by Kotak Mahindra Bank. Finally, it lists several custodians registered with SEBI and distinguishes between the roles of a custodian and depository.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 16

    INDIAN FINANCIAL SYSTEM

    M.COM SEMESTER II

    CUSTODIAN

    Dr. GEETIKA T. KAPOOR


    Department Of Commerce
    CUSTODIANS /CUSTODIAL
    SERVICES
    MEANING OF CUSTODIAN
    It is one of the financial services in which a brokerage or
    other financial institution holds and manages a client's
    securities or other assets on their behalf.
    A custodian provides an investor a place to store assets with
    little risk. This reduces the risk of the client losing their
    assets or having them stolen. They are also available to sell
    through the brokerage at the client's demand.
    The custody business provides a range of security services,
    like safekeeping and settlement, dividends collection and
    distribution, proxy voting, tax reclaim services, fund
    administration and providing market news
    Stock Holding Corporation of India Limited
    • SHCIL is India's largest custodian and depository participant, based
    in Mumbai, Maharashtra.
    • SHCIL was established in 1986 as a Public Limited Company and is a subsidiary of IFCI.
    • SHCIL is known for its online trading portal, with investors and traders. It is also
    responsible for e-stamping system around India.
    • It is also authorised by Reserve Bank of India as Agency Bank to distribute and receive
    Govt. of India savings/relief bond 2003 along with nationalized banks.

    • The Stock Holding Corporation is mainly split into two separate entities under the SHCIL
    umbrella:
    • SHCIL Services Ltd (stock brokering services)
    • StockHolding Document Management Services Limited (provides end-to-end document
    storage and digitization services)
    SSL and StockHolding DMS
    • SHCIL Services Ltd (SSL) is a SEBI registered Corporate Stock Broker providing safe and
    reliable services to all institutional and retail clients across length and breadth of the
    country. SSL offers services in both Cash and F&O segment of BSE & NSE and Currency
    Derivatives segment of NSE. SSL started broking operations in July 2006.
    • StockHolding Document Management Sevices Limited (StockHolding DMS) is a wholly
    owned subsidiary of Stock Holding Corporation of India Limited (StockHolding), which is a
    single window provider to the financial services sector in India.
    • StockHolding DMS has been incorporated in the year 2006 with the objectives:

    • To provide End to End Document Management Solutions.


    • To provide Information Technology Enabled Services (ITeS).
    PERSONAL,CORPORATE AND CUSTODIAL
    SERVICES
    Personal services: Custodial services include any safekeeping,
    administration, transaction and further activities
    • Demat Account done on behalf of a company by its custodian,
    and include:
    • Insurance
    • Fund accounting
    • Mutual Funds
    • FDI (Foreign Direct Investment)
    • NPS (Retirement)
    • Company Valuation
    • GOI Bonds (Government of India)
    • Vaults
    • IPOs
    • Customized Reporting
    • Stock Holding
    • Electronic and Physical Safekeeping Services
    GoldRush
    • Clearing and Settlement Services
    • A platform that allows users to buy gold online
    and is one of the only two ways to do so in
    India.
    Corporate services
    • Demat services for business
    • CSGL services (government bonds)
    • Trading accounts
    • NPS accounts
    • Bullion (gold and silver)
    Name of the Kotak Mahindra
    Company Finance Limited
    Year of 1985
    Establishment
    Headquarters Mumbai, India
    CEO Mr. Uday Kotak
    Industry Financial Service
    Sector Public
    Kotak Group, a premier financial services provider and
    one of the leading private sector banks in India,
    proudly launches Custody Services as part of its
    diversified services portfolio in capital markets
    industry. A dedicated team of experienced
    professionals and emphasis on the latest state of the
    technologies have made Kotak Group being at the
    forefront of financial products and services in Indian
    capital markets for overseas and domestic investors.
    Custody Services division at Kotak Mahindra Bank Ltd.,
    (KMBL) is committed to delivering top of the securities
    services to institutional investors, both foreign and domestic,
    that would be investing in the Indian capital markets
    across debt and equity instruments, derivatives,
    Depository Receipts and mutual fund units.
    Key Features
    Custody and Settlement Services
    Depository Receipts
    Escrow Accounts
    Foreign Direct Investment
    Internet Interface for Clients
    CUSTODIAN SERVICES PROVIDED BY KMBL
    1. Account Opening: Kotak Mahindra Bank would assist
    clients for the custody account opening documentation
    requirements and facilitate clients during the SEBI
    registration process.
    2. Securities Safekeeping: Provides safekeeping services for
    securities held - both in electronic as well as physical
    forms
    3. Corporate Actions: KMBL custody tracks for corporate
    actions processing on behalf of its clients. This involves
    application made to issuers on behalf of clients, income
    collection and following-up for corporate action events like
    dividend, interest, redemption, bonus, rights, etc.
    4. Foreign Exchange Services: KMBL has a dedicated foreign
    exchange desk that takes care of client needs for currency
    conversions and risk management products.

    5. Proxy Services: KMBL would act on client instructions and


    participate and vote on their behalf in shareholders' meetings
    of companies.

    6. Compliance Monitoring and Regulatory Reporting: KMBL


    would monitor compliance to existing guidelines by investors
    and facilitate reporting to regulators and local authorities on
    behalf of the client.

    7. Transaction Settlement: As a Clearing Member with the


    clearing houses of leading Indian Stock Exchanges (NSE &
    BSE), KMBL
    8.Standardized and Customized Reporting: Investors need
    meaningful information that offers insight to their
    investment portfolios. It also provides customized reports to
    clients at various frequencies to enable clients to efficiently
    manage their securities portfolio, cash balances and take
    more informed investment decisions.
    CUSTODIANS IN INDIA
    • – ICICI bank
    – SBI (State bank of India)
    – HDFC Bank
    – Standard Chartered Bank
    – Stock Holding Corporation of India Limited
    – IL&FS Securities Services Ltd.
    – Axis Bank Limited
    BNP Paribas, CitiBank NA etc..

    • 19 Custodians registered with SEBI


    Difference between Custodian and Depository
    • Custody is a function of depository and so each depository is a
    custodian, but custodian is not a depository.
    * Custodian = custody only
    * Depositary = custody (frequent delegation) + control and legal
    ownership of securities
    • So, basically the main difference is that the legal ownership of assets
    lie with Depository and not with custodian.

    You might also like