What Are Custodians? (2024)

What Are Custodians? (1)Financial TermsWhat Are Custodians?

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Custodians are SEBI-registered market intermediaries, primarily responsible for safe-keeping of securities of their clients.

What Are Custodians? (4)

Custodians help in reducing systemic risk in the capital market. (Photographer: AbsolutVision on Unsplash)

This is a series of explainers to educate and inform new investors. In association with Dun & Bradstreet India as knowledge partner.

Custodians: Definition, Meaning & Basics

Custodians are SEBI-registered market intermediaries, primarily responsible for safe-keeping of securities (such as shares) of their clients. They offer a variety of services to clients, such as corporate action reconciliation, post-trading services of clearing and settlement.

Custodians, as an important market intermediary, help in reducing systemic risk in the capital market. They also facilitate issuance of cross-border securities, such as American Depository Receipts and Global Depository Receipts.

Custodians are appointed mostly by institutional clients to avail the above-mentioned services. They charge fees from their clients for providing these services, which are mostly based on value of assets held by them on behalf of their clients.

Some of the leading custodians globally are Bank of New York Mellon Corp., State Street Corp., etc. In India, the leading custodians are Stock Holding Corp. of India, HDFC Bank Ltd., ICICI Bank Ltd., etc.

Visit the Financial Terms section for more.

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What Are Custodians? (2024)

FAQs

What is the role of a custodian? ›

Custodian is responsible for carrying out settlements, recording receipts, keeping and maintaining records, and managing custody accounts of the schemes on behalf of the NPS Trust.

What is an example of a custodian? ›

A person who has the custody or care of something, as of a private library; caretaker; keeper. A person or firm having a legal duty to protect and, often, manage specified assets of an individual or group. A janitor. Worked nights as custodian of a high school.

What is the meaning of custodians? ›

cus·​to·​di·​an ˌkə-ˈstō-dē-ən. Synonyms of custodian. : one that guards and protects or maintains. especially : one entrusted with guarding and keeping property or records or with custody or guardianship of prisoners or inmates.

Is a custodian a janitor? ›

In general, a custodian is someone who takes care of or is in charge of the same building or property at any given time of the day. A janitor comes to a location specifically to clean at a set time, typically either morning or nighttime. Have a question you'd like to have answered?

What is a custodian vs janitor? ›

The difference between janitor and custodian positions is that a custodian's job is more consistent and overarching than that of a janitor. While a janitor reports for shift work at a specific time to clean designated areas, a custodian's job description entails the general upkeep of a property or facility.

What's the highest paying custodian job? ›

What are Top 5 Best Paying Related Custodian Jobs in California
Job TitleAnnual SalaryMonthly Pay
Senior Custodian$80,318$6,693
Custodial Engineer$49,625$4,135
Custodial Supervisor$42,540$3,545
Custodian Supervisor$42,540$3,545
1 more row

What makes a good custodian? ›

Custodial roles require strong time-management skills. Your ability to prioritize tasks, organize your work schedule and other aspects of your time management can affect your overall job success. Consider developing the following skills to improve your time management in this field: Punctuality.

Who is the best custodian? ›

  • The Best Custodial Accounts of April 2024.
  • Fidelity Custodial Account.
  • Schwab One Custodial Account.
  • Vanguard Custodial Account.
  • M1 Plus Custodial Account.
  • Acorns Early Custodial Account.
  • UNest Custodial Account.
  • Methodology.
Apr 1, 2024

What are the risks of being a custodian? ›

Here are a few tips of things to be aware of while working on the job:
  • Chemicals. From bleach to ammonia, you work with many kinds of chemicals in order to perform your job. ...
  • Slips and falls. When working with soapy buckets and wet floors, you are potentially at risk of slipping and falling. ...
  • Bodily fluids. ...
  • Pain.
Apr 20, 2020

Why are they called custodians? ›

The word custodian comes from Latin custos, meaning "guardian," and anyone who looks after something can be a custodian. You might be the custodian of your club's records — you take care of the files and keep them up to date.

What industry are custodians in? ›

Custodians are typically financial institutions such as banks, brokerage firms, and trust companies that deal with large amounts of assets and securities.

Can you be a custodian of a person? ›

Following biological and adoptive parents, other people who can be considered for custody of a child include grandparents, aunts, uncles or other relatives and family friends.

What is a female janitor called? ›

A female Janitor is called a janitress. A janitress is employed to provide janitorial duties in an assigned facility area. These individuals provide cleaning and maintenance services for schools, hospitals, manufacturing units, and other business regions.

What is a fancy job name for janitor? ›

Custodian: This is a more formal term often used to describe someone responsible for the maintenance and cleaning of a building or facility. Housekeeper: This term is often used to describe someone who performs cleaning and maintenance duties in a private residence, hotel, or another similar setting.

What are janitors called now? ›

A janitor, also known as a custodian, porter, cleanser, cleaner or caretaker, is a person who cleans and maintains buildings.

How do you describe custodian duties on a resume? ›

Resumes in this field highlight such responsibilities as cleaning and stocking bathrooms, dusting, sweeping, taking care of the trash, cleaning break rooms and driving the machines that clean the floors.

What are the activities of a custodian? ›

The trustee/custodian provides custody of the assets, processes all transactions, maintains other records pertaining to them, files the required IRS reports, issues client statements, helps clients understand the rules and regulations pertaining to certain prohibited transactions, and performs other administrative ...

What services are provided by a custodian? ›

A custodian providing core domestic custody services typically settles trades, invests cash balances as directed, collects income, processes corporate actions, prices securities positions, and provides recordkeeping and reporting services.

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