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TMI BlogMaster Circular for CustodiansX X X X Extracts X X X X X X X X Extracts X X X X ..... 9;Digital mode of payment', 'Information regarding Grievance Redressal Mechanism' and 'Guidelines on Outsourcing of Activities by Intermediaries', etc. 3. With respect to any other directions or guidance issued by SEBI, as specifically applicable to Custodians, the same shall continue to remain in force in addition to the provisions of this Master Circular or any other law for the time being in force. 4. This Master Circular shall come into force from the date of its issue. The circulars mentioned in Annexure A of the Master Circular shall stand rescinded with effect from the date of issuance of this Master Circular. 5. Notwithstanding such rescission, a. anything done or any action taken or purported to have been done or taken under the rescinded circulars, including registrations or approvals granted, fees collected, registration or approval suspended or cancelled, any inspection or investigation or enquiry or adjudication commenced or show-cause notice issued, prior to such rescission, shall be deemed to have been done or taken under the corresponding provisions of this Master Circular; b. any application made to SEBI under the rescinded circulars, pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of the market. Their role is crucial in the effective functioning of the securities clearing and settlement system. It is therefore, important that the custodians follow uniform norms and practices in their dealing with their clients, brokers, stock exchanges and depositories. ● Custodians must function as an integral part of the system and integrate with the system. Therefore, no custodians shall have such norms and practices as would result in their functioning in isolation of clearing and settlement systems. ● Custodians must be a member of the clearing houses/ clearing corporations of the stock exchange(s) and participate in the clearing and settlement process through the clearing house/clearing corporation for all securities of their clients. ● Custodians shall comply with the applicable rules of the exchanges where they have become members of the clearing house/clearing corporation. This would facilitate the operations of the clients, and also result in reduction of cost of service for the client. CHAPTER II FEES FOR CUSTODIANS Format of payment of annual fee at the end of the Financial Year (on or before 30th April) Payment of annual fee by C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FPI. The daily investment reports shall be submitted to SEBI by 3:00 p.m. Custodians are advised to strictly adhere to the above deadline of 3.00 p.m. as SEBI shall be imposing penalty on defaulting custodians. Section A: General instructions: These are general instructions to be followed by the custodians while compiling and submitting daily reports to SEBI. 1. The date format to be used for all reports submitted to SEBI would be DD-MM-YYYY. 2. Custodians must ensure that the data submitted is accurate and complete and does not contain any blank or incomplete records. 3. All transactions will have a unique transaction identification number (ID) which would be given by the custodians at their end. Custodians are free to give any ID as per their own system. It should however be ensured that the ID is not repeated. 4. To avoid any confusion regarding the name of the security, International Securities Identification Number (ISIN) codes should be used. The appropriate ISINs for scrips as applicable for the physical and demat form, etc. are to be used. Some of the sites where list of ISIN codes are available are mentioned below: www.sebi.gov.in., www.nsdl.co.in, www.rbi.org. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt. 11. Debenture Conversion: In case of debenture conversion into equity, the reduction in value of debenture should be shown as a sale transaction in debt report with transaction code (08). The acquisition of equity should be reported as a conversion transaction (which would be deemed as a purchase) in the equity report at conversion rate giving transaction code as (06). The net investment as on that date would generally be nil. Efforts should be made to report both legs of the transaction on the same day. However, in case any cash is either received or given, the same should be added to the rate field in sale and purchase trades appropriately. 12. Merger/Amalgamation cases: In a merger, the existing shares are exchanged for the shares of resulting entity after the merger. Thus, the first leg of the trade has to be a sale of the shares which have been surrendered to the company, where the price of shares would be nil, and the Nature of trade 16. In case cash is received by the client, the same should be incorporated in the price. The second leg of the trade would be the receipt of the new shares, again at a nil value and the Nature of Trade as 07. In case the client receives ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... each, the transaction of exercise of warrants should be reported under code 08 with value INR 100 and a corresponding purchase of equity shares @ INR 1000 under code 05. In case the warrant is not exercised and it lapses, it has to be reported under code 17 with zero value. Section C: Reporting of Debt transactions 1. The format for the debt 'Daily Debt Transaction Report' (DDR) and 'Daily Debt Transaction Summary' (DDS) would be the same as the formats for the equity DTR and DTS. 2. The operational guidelines are as under: a) Some instruments are traded just like equity i.e. price for each unit of debenture / bond is quoted. In such cases, the quantity may be quoted as "actual number of units" transacted. In such cases transactions may be reported in the same manner as in equity. The transaction quantity and transaction rate fields would contain the actual quantity and rate. b) Some instruments like government dated securities, Treasury bills, government loans etc. are quoted on a base of "Rs. 100". Instruments like Treasury Bills, Dated Government securities, Government loans, certain types of corporate / institutional bonds etc. are generally traded on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Type as: Amendment (the appropriate codes as given in the annexure are to be used in the soft copy of the report). 2. In case of deletion of a transaction, the transaction be reported with same Trade ID and Reporting Type as: Deletion. A statement may be submitted in case of amendment / cancellation of transactions mentioning the reasons therefor. 3. All amendments / deletions should be reported on the day when information about the same is received by the custodian. Delay in reporting would be viewed seriously. a. Sub-division of contracts is to be reported as two transactions as indicated below: i. First transaction would be amendment of original transaction, should generally contain the larger of the quantity divided and would contain A in the R_Type field and R_Change as 07 ii. The second transaction would be reported with a new ID, with the remainder quantity with N as the R_Type, but in the R_Change field the code would not be 00 but 07 again. Similarly, if there are three or more sub divisions, the same may be reported as per the above paras. b. Similarly, in case of consolidation of contracts, there would be two transactions as indicated below. i. First tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities 2. ISIN wise Assets under Custody (AUC) report Custodians shall report ISIN wise AUC details of FPIs, on a fortnightly basis by the 2nd working day of the end of each fortnight. Based on these reports, fortnightly Sector-wise FPI investment data is being disseminated on the websites of NSDL and CDSL. These reports are available on NSDL and CDSL on below weblink: NSDL: https://www.fpi.nsdl.co.in/web/Reports/FPI Fortnightly Selection.aspx CDSL : Fortnightly Sector-wise FII Investment data (cdslindia.com) The format of the ISIN wise AUC report to be submitted by custodians is enclosed as Annexure K. For fortnightly AUC for hybrid instruments and under VRR, custodians shall report as a separate excel file, via email only, to [email protected]. The format for reporting AUC remains the same. 3. Fortnightly debt trades reporting With a view to monitor the allocation and utilization of limits for Government and Corporate debt and Upper Tier II instruments, the custodians are advised to submit fortnightly reports to SEBI in the format enclosed in Annexure L. 4. Submission of Monthly Reports Custodians should provide the market value of the securities held in cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... site of the Custodian The format of the quarterly reports to be submitted by custodians is enclosed as Annexure O. Custodians may also submit a hard copy of the same to SEBI. 7. Net worth details In order to monitor the fulfillment of capital requirements, all custodians are advised to submit a certified copy of their audited annual accounts / annual report along with a networth certificate signed by a practicing chartered accountant within six months of close of each financial year. Custodians may also submit a hard copy of the same to SEBI. 8. Annual Review Report Regulation 14 of the Custodian Regulations stipulates an annual review of the systems, procedures & controls of the custodian by an expert. This review covers the systems and procedures being followed by the custodian to meet its obligations towards its clients, regulators and other relevant bodies. A copy of the review report, in this regard, is required to be filed with SEBI. The report for a particular calendar year would be filed by 31st March of the following year along with 'Action Taken Report', if any. Custodians may also submit a hard copy of the same to SEBI. Further, this review report should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Annexure P shall submit a 'NIL' report. vi. Custodian/ DDPs using AI or ML based application or system as defined in Annexure P, are required to fill in the form (Annexure Q) and submit the same to the Board. The said report shall be submitted in soft copy only to SEBI at [email protected] (for Custodians) or [email protected] (for DDPs). vii. Custodians/DDPs shall report data to depositories/market intermediaries for the purpose of monitoring/compilation as advised by SEBI from time to time. CHAPTER V Publishing of Investor Charter and Disclosure of Complaints by Custodians on their websites i. In order to facilitate awareness among investors about the details of activities carried and services provided by Custodians, SEBI after due consultation has developed Investor Charters for Custodians which inter-alia deals with services provided to investors with timelines and general guidance for Investors. ii. In this regard, all the registered Custodians shall take necessary steps to bring the Investor Charter, as provided in "Annexure-R", to the notice of their clients and ensure that the Investor Charter is prominently displayed on their respective website for ease ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umber CC-CC-CC-XXXX-YY CHARACTER 16 5 FII_NAM FII Name CHARACTER 60 6 SA_CODE Sub-account Code NUMBER 7 7 BRK_R_NO Broker Registration Number CHARACTER 12 8 SCR_NAM Scrip Name CHARACTER 40 9 ISIN_CODE ISIN Code CHARACTER 12 10 TRN_DT Transaction Date DD-MON-YYYY NUMBER 11 11 NAT_TRN Nature of Transaction (Purchase, Sale, Bonus etc.) NUMBER 2 12 EXCH_CODE Exchange Code CHARACTER 2 13 SETT_CODE Settlement Code CHARACTER 1 14 T_RATE Transaction Price of each share(Rs.) - this is the market trade price and does not include brokerage or any other charges. NUMBER (15,4) 15 T_QTY Transaction Quantity NUMBER (11,2) 16 VALUE Transaction Value (Rs.) NUMBER (16,2) 17 INST_TYPE Instrument Type CHARACTER 2 18 R_DELAY Reasons for Delay in Reporting CHARACTER 1 19 R_TYPE Reporting Type CHARACTER 1 20 R_CHANGE Reason for amendment / deletion of trade NUMBER 2 C - Character N - Number N (12,2) - Number with 10 integers and 2 decimal digits Annexure D: DAILY TRANSACTION SUMMARY (DTS and DDS) (This is the print format for the DTS, the soft copy would contain the values only as a single record in a flat txt file) D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er etc. Annexure G: Stock Exchange Code CODE NAME OF STOCK EXCHANGE 01 THE STOCK EXCHANGE, MUMBAI (BSE) 02 THE STOCK EXCHANGE, AHMEDABAD (ASE) 03 CALCUTTA STOCK EXCHANGE 04 MADRAS STOCK EXCHANGE 05 DELHI STOCK EXCHANGE 06 HYDERABAD STOCK EXCHANGE 07 MADHYA PRADESH STOCK EXCHANGE, INDORE 08 BANGALORE STOCK EXCHANGE 09 COCHIN STOCK EXCHANGE 10 UTTAR PRADESH STOCK EXCHANGE, KANPUR 11 PUNE STOCK EXCHANGE 12 LUDHIANA STOCK EXCHANGE 13 GAUHATI STOCK EXCHANGE 14 MANGALORE STOCK EXCHANGE 15 MAGADH STOCK EXCHANGE, PATNA 16 JAIPUR STOCK EXCHANGE 17 BHUBANESHWAR STOCK EXCHANGE 18 SAURASHTRA KUTCH STOCK EXCHANGE, RAJKOT 19 VADODARA STOCK EXCHANGE 20 OVER THE COUNTER EXCHANGE OF INDIA 21 COIMBATORE STOCK EXCHANGE 23 NATIONAL STOCK EXCHANGE OF INDIA (NSE) 24 INTER-CONNECTED STOCK EXCHANGE Settlement Code C- Settlement through Clearing House A. Hand Delivery settlement not involving Clearing House B. Clearing house transactions settled through Hand Delivery due to non-receipt of client confirmation C. Other (Public issue, etc.) Annexure H: Type of Security/ Instrument Type of Instrument Instrument code Equity shares (listed) EQ Equity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RY: REGISTERED OFFICE: CORPORATE OFFICE: TELPHONE NO: FAX NO: CONTACT PERSON: EMAIL ID SECURITIES DETAILS: Equity/ Debenture/ Warrants/Bonds/etc. SECURITY SUB TYPE: Fully paid/ partly paid/etc. ISSUER TYPE: Company/Municipal Corporation/Trust/etc. PAID UP / ISSUED CAPITAL: FACE VALUE OF SECURITY: NO OF SECURITIES ISSUED: I hereby agree and declare that the information provided above and the undertakings given above are complete and true. Undertaking: I further agree that we will immediately notify the Securities and Exchange Board of India of any change in the information provided. Managing Director / Chief Executive Officer Place: Date: Certified by Statutory Auditor of the Company Place: Date: Annexure K: Fortnightly basis ISIN wise AUC report Annexure L: Fortnightly Debt trades report Annexure M: Monthly Reports Annexure N: Maturity-wise break-up of holdings in debt securities (Original Maturity and Residual Maturity): Annexure O: Custodian Quarterly Report: CUSTODIANS QUARTERLY REPORT FOR QUARTER ENDED __________________ A. GENERAL PARTICULARS a. NAME b. ADD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orised signatory of custodian 2. This statement is to be submitted on quarterly basis as at the end of March, June, September & December. 3. The statement is to be submitted so as to reach the Board within 15 days of end of quarter. Annexure P: Systems deemed to be based on AI & ML technology Annexure Q: Report on AI & ML technology ANNEXURE- R INVESTOR CHARTER - CUSTODIAN VISION STATEMENT: "To make India an investor friendly country through efficient Regulations". MISSION STATEMENT: "To serve all investors by promoting the highest standards of ethics, professional excellence and investor protection". TIMELINES PERTAINING TO VARIOUS SERVICES PROVIDED BY CUSTODIAN Sr. No. Type of Service Expected Timelines* 1 Account Opening (a) Opening Custody Accounts Within 15 working days 2 Trade Processing (a) Pre-matching, Confirmations, Margin / Funding verification Within the Market timelines (b) Settlements within 24 hours of receipt of Securities/ Cash 3 Safekeeping of Assets / Reports to Client within 24 hours of receipt of Securities 4 Breach of Foreign Ownership Limit within 24 hours 5 Asset Servicing (a) Corporate action notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 Grand Total B. Trend of Monthly disposal of complaints for the Financial Year- Sr. No Month Carried forward From previous month Received during the month Resolved during the month Pending at the end of the month ** 1 April 2021 2 May 2021 ........ 12 March 2022 Grand Total * Inclusive of complaints of previous months resolved in the current month. ** Inclusive of complaints pending as on the last day of the month. ^ Average Resolution time is the sum total of time taken to resolve each complaint in days, in the current month divided by total number of complaints resolved in the current month. C. Trend of Annual (FY) disposal of complaints (For 3 years on rolling basis)- Sr. No Year Carried forward from previous year Received during the year Resolved during the year Pending at the end of the year 1 2019-20 2 2020-21 3 2021-22 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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