About Custodian
Custodian of Securities refers to an entity granted a certificate of registration under sub-section (3) of section 27 of the Act by the Authority. This certification allows the entity to provide custodial and depository participant services for pension schemes regulated by the Authority.
The Pension Fund Regulatory and Development Authority (Custodian of Securities) Regulations, 2015 were notified on May 14, 2015, and have since been amended. The Custodian of Securities must comply with these regulations, including any subsequent amendments.
Roles & Responsibilities of Custodian
For detailed information, refer to the Pension Fund Regulatory and Development Authority (Custodian of Securities) Regulations, 2015 and its subsequent amendments.
Functions
"Custodial services" refer to those services defined under the SEBI (Custodian) Regulations, 1996 (with amendments), as permitted by the PFRDA in accordance with investment guidelines.
Functions of Custodian include the safekeeping of securities or assets held under the pension schemes regulated/ administered by PFRDA . The Custodian is responsible for settlements, recording receipts, maintaining records, and managing custody accounts on behalf of the NPS Trust.
Deutsche Bank AG was appointed as the Custodian of Securities for the National Pension System (NPS) and other pension schemes regulated by the Pension Fund Regulatory and Development Authority (PFRDA) on March 17, 2022.
Regulations of Custodian
Pension Fund Regulatory and Development Authority (Custodian of Securities) Regulations, 2015
Initially notified on May 14, 2015, these regulations establish the guidelines and responsibilities for entities acting as custodian of securities for pension schemes regulated by the PFRDA
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Pension Fund Regulatory and Development Authority (Custodian of Securities) (Amendment) Regulations, 2021
These regulations, notified on December 8, 2021, amend the original 2015 regulations to enhance the framework for custodial services under the National Pension System (NPS) and other pension schemes regulated by the Pension Fund Regulatory and Development Authority (PFRDA)
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Custodian Circulars
08-Apr-2019 | PFRDA/2019/9/SUP_CUST/1 | PFRDA (Internal Audit of Custodian of Securities) Guidance Note - 2019
This guidance note, issued on April 8, 2019, standardizes the internal audit process for custodian of securities under the National Pension System (NPS) and other schemes regulated by the Pension Fund Regulatory and Development Authority (PFRDA). The internal audit must be conducted quarterly and cover all aspects of custodial operations and procedures.
Custodian Charges
In consideration for the services provided, the Custodian is entitled to charge asset servicing fees, expressed as a percentage of the assets (to be calculated on daily accrual basis) under custody. This fee is calculated on a daily accrual basis for various schemes regulated or administered by the Pension Fund Regulatory and Development Authority (PFRDA), as approved by the Authority. The fee structure is subject to revision to ensure subscriber interests and the orderly growth of the pension sector.
The asset servicing charges are based on the daily closing balance of assets held by the custodian of securities under the pension schemes regulated by the Authority. This includes the face value of debt instruments and the purchase price of equity instruments.
Asset Servicing Charges
• 0.000000001770% per annum of assets under custody for both electronic and physical segments.
List of Custodians
Deutsche Bank AG
Deutsche Bank AG has been granted the Certificate of Registration to act as custodian of securities under the National Pension System (NPS) and other pension schemes regulated by the Pension Fund Regulatory and Development Authority (PFRDA). The bank provides comprehensive custodial services, ensuring the safekeeping and management of assets.