Write short notes on the following: (a) Custodial services

Custodial Services: Custodial services refer to the safekeeping of securities, goods, or other assets of a client, along with providing services incidental thereto. A custodian, holding a certificate of registration from SEBI, acts as a trustee for the client's assets, ensuring their safety and proper management. As per the SEBI (Custodian) (Amendment) Regulations, 2022, a custodian may provide services for silver or silver-related instruments held by a mutual fund only after obtaining prior approval from SEBI. The scope of 'Custodial Services' typically includes: Maintaining Accounts: Keeping accurate records of securities, goods, gold/gold-related instruments, silver/silver-related instruments, or title deeds of real estate assets belonging to a client. Domestic Depository Activities: Undertaking activities as a Domestic Depository as per the Companies (Issue of Indian Depository Receipts) Rules, 2004. Collecting Benefits/Rights: Collecting benefits or rights accruing to the client in respect of their held assets (e.g., dividends, interest, bonus shares, rights issues). Informing Clients (Securities): Keeping clients informed about actions taken or to be taken by the issuer of securities that affect the benefits or rights accruing to the client. Informing Clients (Goods): Keeping clients informed about actions taken or to be taken concerning goods held on their behalf. Record Maintenance and Reconciliation: Maintaining and reconciling records of all the above-mentioned services. Custodians play a crucial role in the financial market by reducing operational risks for investors and ensuring the integrity of asset holdings.