SEBI mandates that custodians will now be required to report and pay fees on a monthly basis, effective from October 1, 2026. This change is part of an ongoing effort to enhance compliance and oversight.
SEBI Implements Monthly Reporting for Custodians
SEBI's new notification, dated July 3, 2026, mandates a shift in reporting and fee payment schedules for custodians, requiring these actions to be completed on a monthly basis starting October 1, 2026. This regulatory update aims to improve timeliness and enhance the monitoring of custodial operations.
The regulation emphasizes the need for more frequent oversight, which aligns with SEBI's broader goal of strengthening the accountability of financial intermediaries. The revised fee provisions are designed to support this regulatory framework and encourage better compliance among custodians.
Legal professionals working with custodians or in compliance should prepare for these changes, ensuring that their clients understand the new obligations and are equipped to comply with the updated timelines.
Citations
- SEBI Notification (2026) SEBI Official Gazette
