Section 16 in Securities And Exchange Board Of India (Foreign Institutional Investors) Regulations, 1995
16. Appointment of domestic custodian.-
(1)A Foreign Institutional Investor or a global custodian acting on behalf of the Foreign Institutional Investor, shall enter into an agreement with a domestic custodian to act as custodian of securities for the Foreign Institutional Investor.(2)The Foreign Institutional Investor shall ensure that the domesticcustodian takes steps for -(a)monitoring of investments of the Foreign Institutional Investor in India;(b)reporting to the Board on a daily basis the transactions entered into by the Foreign Institutional Investor;(c)preservation for five years of records relating to his activities as a Foreign Institutional Investor; and(d)furnishing such information to the Board as may be called for by the Board with regard to the activities of the Foreign Institutional Investor and as may be relevant for the purpose of this regulation.(3)A Foreign Institutional Investor may appoint more than one domestic custodian with prior approval of the Board, but only one custodian may be appointed for a single sub-account of a Foreign Institutional Investor.
