Question

The capital adequacy requirement for a custodian of securities is

Answer 1

Only big registered firms with good market reputation can be the custodian of securities.  

These firms have to be cash rich and according to the 7 of SEBI (Custodian of Securities) Regulations, 1996, all custodians are obligated to fulfill the capital requirements by having a net worth of Rs.50 crores.

This fee has to be paid for each twelve-month-period starting from the day of registration of the said custodian.