SEBI Raised Custodian Net Worth Requirement to Rs 75 Crore for Risk Management

Current Context: On 18 September 2025, the Securities and Exchange Board of India (SEBI) issued a notification amending the SEBI (Custodian) Regulations, 1996.

• It raised the minimum net worth requirement for custodians from ₹50 crore to ₹75 crore.
• The move aims to strengthen risk management systems and enhance investor protection.
• Existing custodians have been given a 3‑year compliance window to meet the new threshold.
• They must maintain robust governance structures, risk management policies, scalable infrastructure, and internal controls. 
• Custodians are barred from unfair competition or making exaggerated claims of capability.
• They safeguard assets of Foreign Portfolio Investors (FPIs), Mutual Funds, Portfolio Managers, and Alternative Investment Funds (AIFs).

Question:

Q.1 What is the new minimum net worth requirement for custodians as per the SEBI amendment notified on September 18, 2025?
a) ₹50 crore
b) ₹25 crore
c) ₹100 crore
d) ₹75 crore

Answer: d) The amendment explicitly raises the minimum net worth from the previous ₹50 crore to ₹75 crore.