Key Features & Offerings

Kotak Group, a premier financial services provider and one of the leading private sector banks in India, proudly launches Custody Services as part of its diversified services portfolio in capital markets industry. A dedicated team of experienced professionals and emphasis on the latest state of the art technologies have culminated in Kotak Group being at the forefront of financial products and services in Indian capital markets. Custody Services, the latest offering from Kotak Mahindra Bank, provides a bouquet of tailor made solutions for overseas and domestic investors.

The Custody Services division at Kotak Mahindra Bank Ltd., (KMBL) is committed to delivering top of the line securities services to institutional investors, both foreign and domestic, that would be investing in the Indian capital markets across debt and equity instruments, derivatives, Depository Receipts and mutual fund units. A dedicated Account Manager would partner clients to help leverage our services and professional expertise that would best meet our clients’ needs.

The custodial services offered by Kotak Mahindra Bank include:

• Account Opening: Kotak Mahindra Bank would assist clients for the custody account opening documentation requirements and facilitate clients during the SEBI registration process . These would include:
  • Clarification on existing guidelines
  • Providing assistance during the application process including vetting of application forms
  • Liaison with SEBI and feedback to client on application status
• Transaction Settlement: As a Clearing Member with the clearing houses of leading Indian Stock Exchanges (NSE & BSE), KMBL performs clearing and settlement of cash and securities on behalf of clients.
• Securities Safekeeping: Provides safekeeping services for securities held – both in electronic as well as physical forms
• Corporate Actions: KMBL custody tracks for corporate actions and does corporate actions processing for both voluntary and involuntary events on behalf of its clients. This involves application made to issuers on behalf of clients, income collection and following-up for corporate action events like dividend, interest, redemption, bonus, rights, etc.
• Standardized and Customized Reporting: Investors need meaningful information that offers insight to their investment portfolios. Apart from the very comprehensive standard suite of reports, KMBL provides customized reports to clients at various frequencies to enable clients to efficiently manage their securities portfolio, cash balances and take more informed investment decisions.
• Compliance Monitoring and Regulatory Reporting: KMBL would monitor compliance to existing guidelines by investors and facilitate reporting to regulators and local authorities on behalf of the client.
• Foreign Exchange Services: KMBL has a dedicated foreign exchange desk that takes care of client needs for currency conversions and risk management products.
• Proxy Services: KMBL would act on client instructions and participate and vote on their behalf in shareholders’ meetings of companies.

KMBL would coordinate with local custodians to ensure prompt receipt of underlying securities against cancelled depository receipts and report the same to clients on priority basis.

KMBL manages the pay-in and pay-out of securities to / from clearing houses of Stock Exchanges on behalf of trading member brokers and does depository transfers of securities on behalf of trading members.

KMBL has expertise in customized solution for escrow arrangements.

KMBL Custody facilitates in the following manner during FDI transactions undertaken by clients:

• Close co-ordination between company / counter-party and client for the date of transaction and movement of funds and shares on the transaction date.
• Compliance of transaction with regulations
• Follow-up with company for filing of necessary documents with regulators

KMBL combines technology and a deep understanding of the investment process to transform data into information that our clients need to make investment decisions. KMBL provides one of its kind web enabled interface to its Custody Services clients. The web interface delivery system provides different types of information that clients need and in a manner that is most efficient. The web interface provides the following functionalities to its clients:

• Instruction input for market transactions
• Instruction input for voluntary corporate actions
• Online generation of various standard reports and ad hoc reports
• Online monitoring of cash and security balances

We maintain a strong commitment to the securities servicing business and technology plays a critical role in every thing we do. We invest extensively in the latest and most advanced technology solutions so we can in turn offer the most advanced solutions and the broadest range of value added services to our clients.