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APPOINTMENT OF CUSTODIAN

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(i) The mutual fund shall appoint a Custodian to carry out the custodial services for the schemes of the fund and sent intimation of the same to the board within 15 days of appointment of custodian; 

(ii) No custodian in which:

▪Sponsor or its associates hold 50% or more of voting rights of Share Capital of Custodian or 

▪where 50% of more of the directors of custodian represent the interest of sponsor or its associates;

▪shall act as custodian for a mutual fund constituted by the same sponsor or any of its associates or subsidiary company;   Provided that where the sponsor or its associates hold 50% or more of Voting rights of custodian, such custodian may act as custodian for a mutual fund constituted by the same sponsor or any of its associates or subsidiary company if:

a) The sponsor has a Networth of at least 20,000 crore rupees at all point of time; 

b) 50% or more of directors of custodian are those who do not represent the interest of sponsor or its associates;

c) the custodian and AMC of MF are not subsidiary of each other;

d) No person is a director of both the custodian and AMC; and

e) The custodian and AMC sign an undertaking that they will act independently of each other in their dealings with the scheme;

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