3. Who is a custodian?

A Custodian is an independent agency who holds the physical custody of the Financial Securities owned by a client. SEBI has registered a few agencies as Custodians who can provide these services. SEBI also requires that Mutual Funds appoint such registered Custodian for maintaining their securities.

The Custodian ensures that:

• all Securities are maintained systematically
• the Sales and Purchases are carried out properly
• Bad deliveries are cleared by the broker
• Dividends or Interest or Redemption proceeds are collected on the due date
• Any benefits, such as Bonus or Rights are accrued