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ARTICLE · 23 MARCH 2026

SEBI Issues Fresh Guidelines For Registered Custodians

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SEBI by way of circular dated 04.03.2026 (“Custodian Circular”), has issued updated guidelines for registered Custodians, following the amendment to the SEBI (Custodian) Regulations, 1996 (“Custodian Regulations”) issued by notification dated 18.09.2025.

IndiaFinance and Banking
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Sagus Legal LLP

SEBI by way of circular dated 04.03.20261 (“Custodian Circular”), has issued updated guidelines for registered Custodians, following the amendment to the SEBI (Custodian) Regulations, 1996 (“Custodian Regulations”) issued by notification dated 18.09.2025.

The Custodian Circular covers the following key areas:

(a) Segregation of Activities:

(i) Custodians are permitted to offer financial services beyond custody. Non-bank Custodians must operate SEBI-regulated and non-SEBI-regulated services through separate Strategic Business Units (SBUs), with separate accounts maintained on an armslength basis.

(ii) Non-bank Custodians offering unregulated financial services must disclose this to clients and obtain a written acknowledgement that SEBI recourse is not available for grievances arising from such services.

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