Section 25 in Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019
25. Appointment of custodian.
(1)A foreign portfolio investor or a global custodian who is acting on behalf of the foreign portfolio investor, shall enter into an agreement with the designated depository participant engaged by it to act as a custodian, before making any investment under these regulations.(2)In addition to the obligation of custodian under any other regulations, the custodian shall -(a)report to the depositories and the Board on a daily basis the transactions entered into by the foreign portfolio investor in the form and manner specified by the Board or depositories from time to time;(b)monitor investment of the foreign portfolio investors;(c)maintain the relevant true and fair records, books of accounts, and documents including the records relating to transactions of foreign portfolio investors;(d)report the holdings of foreign portfolio investors who form part of investor group to the depositories and the depositories shall club the investment limits to ensure that combined holdings of all these foreign portfolio investors remains below ten per cent of the total paid-up equity capital on a fully diluted basis of a investee company at any time.
