SEBI Raises Minimum Net Worth Requirement for Custodians to Rs 75 Crore via 2025 Amendment.

In September 2025, the Securities and Exchange Board of India (SEBI) amended the SEBI (Custodian) Regulations, 1996, increasing the minimum net worth requirement for custodians from Rs 50 crore to Rs 75 crore. The move aims to strengthen risk management systems and enhance the governance and operational standards of custodians in India.

      - The amended regulations are now known as the ‘SEBI (Custodian) (Amendment) Regulations, 2025.’ SEBI has stated that the provisions will come into effect six months from their publication in the official gazette, giving custodians a structured timeline to comply with the new norms.

      - Existing custodians are required to meet the revised net worth requirement of Rs 75 crore within three years from the commencement of the new regulations. SEBI has clarified that this capital must be maintained separately from other business requirements to ensure dedicated financial stability for custodian operations.

Main Point :-   (i) Under the new regulations, custodians are expected to maintain a robust governance structure, implement comprehensive risk management policies, and ensure scalable infrastructure along with adequate technical capacity.

      (ii) The amended regulations prohibit custodians from making exaggerated statements—oral or written—about their qualifications, capabilities, or achievements.

(iii) Additionally, custodians must implement internal controls and financial and operational measures to prevent financial loss arising from theft, fraud, professional misconduct, or other operational risks.
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