Section 15 in Securities and Exchange Board of India (Custodian) Regulations, 1996
15. Prohibition of assignment.
- No [custodian] [Substituted 'custodian of securities' by Notification No. SEBI/LAD-NRO/GN/2019/01, dated 1.1.2019 (w.e.f. 16.5.1996).] shall assign or delegate its functions as a [custodian] [Substituted 'custodian of securities' by Notification No. SEBI/LAD-NRO/GN/2019/01, dated 1.1.2019 (w.e.f. 16.5.1996).] to any other person unless such person is a [custodian] [Substituted 'custodian of securities' by Notification No. SEBI/LAD-NRO/GN/2019/01, dated 1.1.2019 (w.e.f. 16.5.1996).]:[Provided that a [custodian] [Inserted by S.O. 1860 (E), dated 31.10.2006] may engage the services of a person not being a custodian, for the purpose of physical safekeeping of [goods or] [Inserted by Notification No. SEBI/LAD-NRO/GN/2019/01, dated 1.1.2019 (w.e.f. 16.5.1996).] gold belonging to its client [including] [Substituted 'being' by Notification No. SEBI/LAD-NRO/GN/2019/01, dated 1.1.2019 (w.e.f. 16.5.1996).] a mutual fund having a gold exchange traded fund scheme, subject to the following conditions -(a)the [custodian] [Substituted 'custodian of securities' by Notification No. SEBI/LAD-NRO/GN/2019/01, dated 1.1.2019 (w.e.f. 16.5.1996).] shall remain responsible in all respects to its client for safekeeping of the [goods or] [Inserted by Notification No. SEBI/LAD-NRO/GN/2019/01, dated 1.1.2019 (w.e.f. 16.5.1996).] gold kept with such other person, including any associated risks;(b)all books, documents and other records relating to the [goods or] [Inserted by Notification No. SEBI/LAD-NRO/GN/2019/01, dated 1.1.2019 (w.e.f. 16.5.1996).] gold so kept with the other person shall be maintained in the premises of the custodian or if they are not so maintained, they shall be made available therein, if so required by the Board;(c)the [custodian] [Substituted 'custodian of securities' by Notification No. SEBI/LAD-NRO/GN/2019/01, dated 1.1.2019 (w.e.f. 16.5.1996).] shall continue to fulfill all duties to the clients relating to the [goods or] [Inserted by Notification No. SEBI/LAD-NRO/GN/2019/01, dated 1.1.2019 (w.e.f. 16.5.1996).] gold so kept with the other person, except for its physical safekeeping.]
