Who is of Custodian of Mutual fund Scheme and its Role in Mutual Fund

  1. The Custodian is a person appointed by the Board of Trustees.
  2. A custodian keeps the physical securities safely and also keeps a tab/label on the corporate actions of companies like rights, bonus and dividends declared by them to investors in which the fund has invested.
  3. The custodian also participates in a clearing and settlement system through approved depository companies on behalf of mutual funds, in case of dematerialized securities.
  4. The holdings are held in the Depository through Depository Participants (DPs) and only the physical securities are held by the Custodian.
  5. The custodian or a depository participant delivers and receives the units of a mutual fund at the instruction of the AMC and under the overall direction and responsibility of the Trustees.

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