SEBI makes custodian fees monthly from annual payment

July 9, 2026

The amendments will come into force on 1 October 2026

The Securities and Exchange Board of India (SEBI) has amended the custodian regulations to replace the existing annual fee mechanism for custodians with a monthly fee payment system.

The amendments will come into force on 1 October 2026.

Custodians will pay ₹85,000 per month or 0.0000416 per cent of their assets under custody, whichever is higher, instead of the existing annual fee of ₹10 lakh or 0.0005 per cent of assets under custody. They have to pay the monthly fee within 15 days from the end of each month.

For custodians registered before 1 October 2026, SEBI has provided a transition mechanism. They will pay a proportionate annual fee up to 30 September 2026 and shift to monthly fee payments from 1 October 2026. The ones registered on or after 1 October 2026 must pay a proportionate monthly fee for the month in which registration is granted, followed by the full monthly fee from the subsequent month.

Any annual fee already paid for the period after 1 October 2026 will be adjusted against future monthly fee payments.

[The Hindu Business Line]