Schedule - III - Code of Conduct - Securities and Exchange Board of India (Custodian) Regulations, 1996

THIRD SCHEDULE (See regulation 12) SECURITIES AND EXCHANGE BOARD OF INDIA ( 2 [CUSTODIAN]) REGULATIONS, 1996 CODE OF CONDUCT 1. The 2 [ custodian ] shall maintain the highest standard of integrity, fairness and professionalism in the discharge of his duties. 2. The 2 [ custodian ] shall be prompt in distributing dividends, interest or any such accruals of income received or collected by him on behalf of his clients on the securities held in custody. 3. The 2 [ custodian ] shall be continuously accountable for the movement of securities 3 [ or goods ] in and out of 4 [ the ] custody account, deposit, and withdrawal of cash from the client's account and shall provide complete audit trail, whenever called for by the client or 5 [ Board ] 4. The 2 [ custodian ] shall establish and maintain adequate infrastructural facility to be able to discharge custodial services to the satisfaction of clients, and the operating procedures and systems of the 2 [ custodian ] shall be well documented and backed by operations manuals. 5. The 2 [ custodian ] shall maintain client confidentiality in respect of the client's affairs. 6. Where custodian records are kept electronically, the 2 [ custodian ] shall take precautions necessary to ensure that continuity in record keeping is not lost or destroyed and that sufficient back up of records is available. 7. The 2 [ custodian ] shall create and maintain the records of securities held in custody in such manner that the tracing of securities or obtaining duplicate title documents is facilitated, in the event of loss of original records for any reason. 8. The 2 [ custodian ] shall extend to other custodial entities, depositories and clearing organizations all such co-operation that is necessary for the conduct of business in the areas of inter custodial settlements, transfer of securities and transfer of funds. 9. The 2 [ custodian ] shall ensure that an arms length relationship is maintained, both in terms of staff and systems, from his other businesses. 10. Every 2 [ custodian ] shall exercise due diligence in safe-keeping and administration of the assets of his clients in his custody for which he is acting as 2 [ custodian ] . 1 [11. (a) A 2 [ custodian ] or any of his employees shall not render, directly or indirectly any investment advice about any security in the publicly accessible media, whether real-time or non-real-time, unless a disclosure of his interest including long or short position in the said security has been made, while rendering such advice. (b) In case an employee of the 2 [ custodian ] is rendering such advice, he shall also disclose the interest of his dependent family members and employer including their long or short position in the said security, while rendering such advice.] ************** NOTES:- 1 Inserted by the SEBI (Investment Advice by Intermediaries) (Amendment) Regulations, 2001, w.e.f. 29-5-2001. 2. Substituted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/01 dated 01-01-2019 before it was read as custodian of securities 3. Inserted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/01 dated 01-01-2019 4. Inserted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/01 dated 01-01-2019 5. Substituted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/01 dated 01-01-2019 before it was read as Securities and Exchange Board of India.