New Age Limited, a listed company with National Stock Exchange, is in the process of appointing a 'Custodian'. One of its Board members raised following questions in the meeting and suggest you to respond as their Compan

The term "Custodian" is a person who carries on or propose to carry on the business of providing custodial services to the client. The custodian keeps the custody of the securities of the client. The custodian also provides incidental services such as maintaining the accounts of securities of the client, collecting the benefits or rights accruing to the client in respect of securities. Specific responsibilities of the custodian are as follows: Administrate and protect the assets of the clients, Open a separate custody account and deposit account in the name of each client, Record assets, Conduct registration of securities. Minimum net worth requirement of custodian is ₹ 50 crores. The SEBI (Custodian) Regulations, 1996