Custody market in India

The world of custody services providers (custodians) has evolved significantly over the years in terms of newer offerings, technology adoption, geographical reach, business models, etc. The changing custody service landscape offers endless growth opportunities to custodians to improve efficiency, reduce risk, and improve the quality of services provided to clients.

The Indian custody services market, which accounts for less than 2 percent of the global custody market, has a significant room to grow. However, to tap this potential and shape the growth story of the Indian custody services market, the custody service ecosystem needs to attain a certain level of maturity with respect to industry structure, risk management, technology adoption, regulations, etc. Indian custody services providers can also learn from their global counterparts, adopt the relevant best practices, and take measures to boost investor confidence.

This report delves into the nuances of the custodian regulatory structure in India and select other countries. It focuses on specialised non-banking custody services providers in India. The report analyses their service offerings, target customer segments, revenue structures, risk levels, business challenges, etc., in comparison with global custodians. It summarises clients’ perspectives on key improvement areas.