Private sector lender Yes Bank has received in-principle nod from markets regulator SEBI to act as custodian of securities.
The city-headquartered bank has been given a year's time to establish the business by developing the operational, tech and human capital capabilities, it said in a statement.
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.
"We intend to build state-of-the-art technology driven infrastructure, integrated with best-in-class human capital," he added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
