Private sector lender Yes Bank has received in-principle nod from markets regulator Sebi to act as custodian of securities.  The bank has been given a year’s time to establish the business by developing the operational, tech and human capital capabilities. Once it receives the final nod, it can offer custodial services to financial market participants, including foreign portfolio investors, which would help its fee-based income.

The size of custodial business in India is steadily growing with increasing value of assets under custody as well as newer investor classes such as Portfolio Management Services (PMS) and Alternative Investment Funds (AIF) opting for custody services, it added.

Bank’s Managing Director and Chief Executive Rana Kapoor said the custodian services will complement its capital market offerings and help it channelise domestic and foreign investments into the country.

Did You Know?

Yes Bank, is India’s fifth largest private sector Bank, co-founded by Rana Kapoor in 2004 Yes Bank is the only Greenfield Bank licence awarded by the RBI in the last two decades. Yes Bank is a “Full Service Commercial Bank”, has steadily built a Corporate, Retail & SME Banking franchise, Financial Markets, Investment Banking, Corporate Finance, Branch Banking, Business and Transaction Banking, and Wealth Management business lines across the country.