CHAPTER 40 / 55 · Paid
Custodian, CIS manager and CIS administrator.
Follow the custodian, the CIS manager and the CIS administrator as three shops. Non-CIS custody is FS-1.7.
Approx. 18 min with exercisesLaw cut-off: 20 September 2026Our approach
By the end of this chapter
- Describe the shop in one paragraph from the first file on the desk.
- Decide the promoter’s next asks: which stay on this letter, which need another paper.
- Keep neighbouring permissions off this desk.
- Cite the enabling section and treat the licence letter as the book.
How this family is grouped
Follow the custodian, the CIS manager and the CIS administrator as three shops. Non-CIS custody is FS-1.7. Each code below is its own shop: a first file, a week, the asks that need a different paper, then the letter. A quieter label is not a thinner file.
SEC-4.1 Custodian
FSC · SEC-4.1 · Licence
1. Custody of IsleEquity Fund’s shop
Custody of IsleEquity Fund is the desk this chapter is for. Act as custodian of a CIS (or as the Securities Act requires for this code).
The first file on the desk is this. SafeBank’s custody arm will hold IsleEquity Fund’s listed shares. SEC-4.1.
Three facts have to stay true of that book. First, the letter is the activity specified. This is a licence under Securities Act 2005, Section 100. A company name is not a permission.
Second, neighbouring papers stay off this desk. Not FS-1.7, not SEC-7.1, not VA-1.3, and not the CIS manager.
Third, the assumptions stay in the file. Fictional custodian. Cut-off 20 September 2026.
Securities Act 2005, Section 100. See the register note · Open the published text ↗.
2. A week with Custody of IsleEquity Fund
Monday. The promoter walks in with “Custody of IsleEquity Fund.” Write the facts before anyone names a code: SafeBank’s custody arm will hold IsleEquity Fund’s listed shares.
Tuesday. The team writes the activity in the words of the licence letter, not the brass plate. Act as custodian of a CIS (or as the Securities Act requires for this code).
Wednesday. They record what this permission is used for. SEC-4.1.
Thursday. They write what the letter does not cover. Not FS-1.7 non-CIS custody.
Friday. They lock the assumptions. Fictional custodian. Cut-off 20 September 2026. The file is ready for the application, not for a slogan on a slide.
The other files on this desk should look like that first one: a named person, a specified activity, and a letter that matches the work. That is what SEC-4.1 is used for. The Act matters when Custody of IsleEquity Fund applies, when the Commission writes conditions onto the letter, and when the same promoter telephones with a different idea.
3. What the same promoter asks next
The facts are fictional. The method is the course: keep the shop you have just watched, and ask which desk is now doing the work.
This licence
Custody of IsleEquity Fund
SafeBank’s custody arm will hold IsleEquity Fund’s listed shares.
Why it fits. SEC-4.1.
Different paper
The same promoter asks for FS-1.7
The slide says the SEC-4.1 letter already covers it because the same company, the same officers or the same client are on the file.
Why it does not. Keep the neighbouring paper off this desk. Not FS-1.7 non-CIS custody.
Different paper
The same promoter asks for SEC-7.1
The slide says the SEC-4.1 letter already covers it because the same company, the same officers or the same client are on the file.
Why it does not. Keep the neighbouring paper off this desk. Not FS-1.7 non-CIS custody.
| The promoter asks Custody of IsleEquity Fund to… | This licence? | Why |
|---|---|---|
| Custody of IsleEquity Fund | Yes | SEC-4.1. |
| The same promoter asks for FS-1.7 | No | Keep the neighbouring paper off this desk. Not FS-1.7 non-CIS custody. |
| The same promoter asks for SEC-7.1 | No | Keep the neighbouring paper off this desk. Not FS-1.7 non-CIS custody. |
4. Papers that sit beside this one
Not FS-1.7, not SEC-7.1, not VA-1.3, and not the CIS manager. Name the other desk when the work changes: FS-1.7; SEC-7.1; VA-1.3; the CIS manager.
Neighbouring codes have their own chapters. Do not import their books into this letter.
5. The letter and the file
The CIS custodian, often a bank or specialist custodian meeting section 100 and the criteria. Published licensing criteria on the FSC codified list (consolidation as at 1 July 2026) are guidance. Fees as at 1 July 2026: Processing fee Rs 32,000 (USD 1,000). Status at cut-off: Published CIS-functionary category as at 1 July 2026.
Who may hold it. The CIS custodian, often a bank or specialist custodian meeting section 100 and the criteria.
Published criteria. Published licensing criteria on the FSC codified list (consolidation as at 1 July 2026) are guidance. They neither derogate from nor restrict the Commission’s statutory powers, and they must be read with the relevant Act, rules, codes and circulars. Dedicated form and criteria (PDF and Word). Except for foreign-scheme rows, USD figures apply to a GBL applicant or holder.
Rules, codes and circulars. CL20260107 for fees.
6. How to cite SEC-4.1
| Coordinate | As at 20 September 2026 |
|---|---|
| Directory code | SEC-4.1 Custodian |
| Legal nature | Licence |
| Enabling law | Securities Act 2005 · Section 100 |
| Fees as at 1 July 2026 | Processing fee Rs 32,000 (USD 1,000). Fixed annual fee Rs 94,000 (USD 2,500). Unless the directory states a different conversion rule, USD figures apply only to an applicant for a Global Business Licence or a corporation holding a Global Business Licence. FSC Circular Letter CL20260107 (1 July 2026) records that the replacement fee schedule operates from 1 July 2026 and that annual fees are due by 30 September 2026. A circular does not rewrite the activity this code authorises. |
| Status at cut-off | Published CIS-functionary category as at 1 July 2026. |
The structured library card keeps the same coordinates for search. Open SEC-4.1 in the reference library.
FSC codified list of licences, authorisations, approvals, recognitions and registrations ↗Register noteSecurities Act 2005 ↗Register noteFSC licensing and fees amendment rules 2026 ↗Register noteFSC Circular Letter CL20260107 — review of fees and renewal of licences ↗Register noteFSC rules and regulations directory ↗Register note
SEC-4.2 CIS Manager
FSC · SEC-4.2 · Licence
1. Isle Managers Ltd’s shop
Isle Managers Ltd is the desk this chapter is for. Manage a CIS.
The first file on the desk is this. Isle Managers Ltd will make portfolio decisions for IsleEquity Fund. SEC-4.2. The fund still needs 3.1A.
Three facts have to stay true of that book. First, the letter is the activity specified. This is a licence under Securities Act 2005, Section 98. A company name is not a permission.
Second, neighbouring papers stay off this desk. Not SEC-3.1A, not an investment adviser, not FS-1.1 assets management as a substitute, and not a CIS administrator.
Third, the assumptions stay in the file. Fictional manager. Cut-off 20 September 2026.
Securities Act 2005, Section 98. See the register note · Open the published text ↗.
2. A week with The manager of IsleEquity Fund
Monday. The promoter walks in with “The manager of IsleEquity Fund.” Write the facts before anyone names a code: Isle Managers Ltd will make portfolio decisions for IsleEquity Fund.
Tuesday. The team writes the activity in the words of the licence letter, not the brass plate. Manage a CIS.
Wednesday. They record what this permission is used for. SEC-4.2. The fund still needs 3.1A.
Thursday. They write what the letter does not cover. Manager is not the CIS. Not 2.4 as a substitute.
Friday. They lock the assumptions. Fictional manager. Cut-off 20 September 2026. The file is ready for the application, not for a slogan on a slide.
The other files on this desk should look like that first one: a named person, a specified activity, and a letter that matches the work. That is what SEC-4.2 is used for. The Act matters when Isle Managers Ltd applies, when the Commission writes conditions onto the letter, and when the same promoter telephones with a different idea.
3. What the same promoter asks next
The facts are fictional. The method is the course: keep the shop you have just watched, and ask which desk is now doing the work.
This licence
The manager of IsleEquity Fund
Isle Managers Ltd will make portfolio decisions for IsleEquity Fund.
Why it fits. SEC-4.2. The fund still needs 3.1A.
Different paper
The same promoter asks for SEC-3.1A
The slide says the SEC-4.2 letter already covers it because the same company, the same officers or the same client are on the file.
Why it does not. Keep the neighbouring paper off this desk. Manager is not the CIS. Not 2.4 as a substitute.
Different paper
The same promoter asks for an investment adviser
The slide says the SEC-4.2 letter already covers it because the same company, the same officers or the same client are on the file.
Why it does not. Keep the neighbouring paper off this desk. Manager is not the CIS. Not 2.4 as a substitute.
| The promoter asks Isle Managers Ltd to… | This licence? | Why |
|---|---|---|
| The manager of IsleEquity Fund | Yes | SEC-4.2. The fund still needs 3.1A. |
| The same promoter asks for SEC-3.1A | No | Keep the neighbouring paper off this desk. Manager is not the CIS. Not 2.4 as a substitute. |
| The same promoter asks for an investment adviser | No | Keep the neighbouring paper off this desk. Manager is not the CIS. Not 2.4 as a substitute. |
4. Papers that sit beside this one
Not SEC-3.1A, not an investment adviser, not FS-1.1 assets management as a substitute, and not a CIS administrator. Name the other desk when the work changes: SEC-3.1A; an investment adviser; FS-1.1 assets management as a substitute; a CIS administrator.
- SEC-3.1A
- an investment adviser
- FS-1.1 assets management as a substitute
- a CIS administrator
Neighbouring codes have their own chapters. Do not import their books into this letter.
5. The letter and the file
The CIS manager company. Published licensing criteria on the FSC codified list (consolidation as at 1 July 2026) are guidance. Fees as at 1 July 2026: Processing fee Rs 25,000 (USD 1,000). Status at cut-off: Published CIS-functionary category as at 1 July 2026.
Who may hold it. The CIS manager company.
Published criteria. Published licensing criteria on the FSC codified list (consolidation as at 1 July 2026) are guidance. They neither derogate from nor restrict the Commission’s statutory powers, and they must be read with the relevant Act, rules, codes and circulars. Except for foreign-scheme rows, USD figures apply to a GBL applicant or holder.
Rules, codes and circulars. CL20260107 for fees.
6. How to cite SEC-4.2
| Coordinate | As at 20 September 2026 |
|---|---|
| Directory code | SEC-4.2 CIS Manager |
| Legal nature | Licence |
| Enabling law | Securities Act 2005 · Section 98 |
| Fees as at 1 July 2026 | Processing fee Rs 25,000 (USD 1,000). Fixed annual fee Rs 75,000 (USD 2,500). Unless the directory states a different conversion rule, USD figures apply only to an applicant for a Global Business Licence or a corporation holding a Global Business Licence. FSC Circular Letter CL20260107 (1 July 2026) records that the replacement fee schedule operates from 1 July 2026 and that annual fees are due by 30 September 2026. A circular does not rewrite the activity this code authorises. |
| Status at cut-off | Published CIS-functionary category as at 1 July 2026. |
The structured library card keeps the same coordinates for search. Open SEC-4.2 in the reference library.
FSC codified list of licences, authorisations, approvals, recognitions and registrations ↗Register noteSecurities Act 2005 ↗Register noteFSC licensing and fees amendment rules 2026 ↗Register noteFSC Circular Letter CL20260107 — review of fees and renewal of licences ↗Register noteFSC rules and regulations directory ↗Register note
SEC-4.3 CIS Administrator (Approval)
FSC · SEC-4.3 · Approval
1. AdminFunds Ltd’s shop
AdminFunds Ltd is the desk this chapter is for. Approval as CIS administrator.
The first file on the desk is this. AdminFunds Ltd will calculate NAV and keep the unit register. SEC-4.3 approval.
Three facts have to stay true of that book. First, the letter is the activity specified. This is a approval under Securities Act 2005, Section 99. A company name is not a permission.
Second, neighbouring papers stay off this desk. Not SEC-4.2, not FS-1.5 as a complete substitute, and not the scheme.
Third, the assumptions stay in the file. Fictional administrator. Cut-off 20 September 2026.
Securities Act 2005, Section 99. See the register note · Open the published text ↗.
2. A week with NAV and registrar for IsleEquity Fund
Monday. The promoter walks in with “NAV and registrar for IsleEquity Fund.” Write the facts before anyone names a code: AdminFunds Ltd will calculate NAV and keep the unit register.
Tuesday. The team writes the activity in the words of the licence letter, not the brass plate. Approval as CIS administrator.
Wednesday. They record what this permission is used for. SEC-4.3 approval.
Thursday. They write what the letter does not cover. Not the manager. FS-1.5 alone is not this approval.
Friday. They lock the assumptions. Fictional administrator. Cut-off 20 September 2026. The file is ready for the application, not for a slogan on a slide.
The other files on this desk should look like that first one: a named person, a specified activity, and a letter that matches the work. That is what SEC-4.3 is used for. The Act matters when AdminFunds Ltd applies, when the Commission writes conditions onto the letter, and when the same promoter telephones with a different idea.
3. What the same promoter asks next
The facts are fictional. The method is the course: keep the shop you have just watched, and ask which desk is now doing the work.
This licence
NAV and registrar for IsleEquity Fund
AdminFunds Ltd will calculate NAV and keep the unit register.
Why it fits. SEC-4.3 approval.
Different paper
The same promoter asks for SEC-4.2
The slide says the SEC-4.3 letter already covers it because the same company, the same officers or the same client are on the file.
Why it does not. Keep the neighbouring paper off this desk. Not the manager. FS-1.5 alone is not this approval.
Different paper
The same promoter asks for FS-1.5 as a complete substitute
The slide says the SEC-4.3 letter already covers it because the same company, the same officers or the same client are on the file.
Why it does not. Keep the neighbouring paper off this desk. Not the manager. FS-1.5 alone is not this approval.
| The promoter asks AdminFunds Ltd to… | This licence? | Why |
|---|---|---|
| NAV and registrar for IsleEquity Fund | Yes | SEC-4.3 approval. |
| The same promoter asks for SEC-4.2 | No | Keep the neighbouring paper off this desk. Not the manager. FS-1.5 alone is not this approval. |
| The same promoter asks for FS-1.5 as a complete substitute | No | Keep the neighbouring paper off this desk. Not the manager. FS-1.5 alone is not this approval. |
4. Papers that sit beside this one
Not SEC-4.2, not FS-1.5 as a complete substitute, and not the scheme. Name the other desk when the work changes: SEC-4.2; FS-1.5 as a complete substitute; the scheme.
- SEC-4.2
- FS-1.5 as a complete substitute
- the scheme
Neighbouring codes have their own chapters. Do not import their books into this letter.
5. The letter and the file
The administrator. Published licensing criteria on the FSC codified list (consolidation as at 1 July 2026) are guidance. Fees as at 1 July 2026: Processing fee Rs 15,000 (USD 500). Status at cut-off: Published CIS-functionary approval as at 1 July 2026.
Who may hold it. The administrator. Often a specialist or an MC affiliate; the approval is still this code.
Published criteria. Published licensing criteria on the FSC codified list (consolidation as at 1 July 2026) are guidance. They neither derogate from nor restrict the Commission’s statutory powers, and they must be read with the relevant Act, rules, codes and circulars. Except for foreign-scheme rows, USD figures apply to a GBL applicant or holder.
Rules, codes and circulars. CL20260107 for fees.
6. How to cite SEC-4.3
| Coordinate | As at 20 September 2026 |
|---|---|
| Directory code | SEC-4.3 CIS Administrator (Approval) |
| Legal nature | Approval |
| Enabling law | Securities Act 2005 · Section 99 |
| Fees as at 1 July 2026 | Processing fee Rs 15,000 (USD 500). Fixed annual fee Rs 36,000 (USD 1,200). Unless the directory states a different conversion rule, USD figures apply only to an applicant for a Global Business Licence or a corporation holding a Global Business Licence. FSC Circular Letter CL20260107 (1 July 2026) records that the replacement fee schedule operates from 1 July 2026 and that annual fees are due by 30 September 2026. A circular does not rewrite the activity this code authorises. |
| Status at cut-off | Published CIS-functionary approval as at 1 July 2026. |
The structured library card keeps the same coordinates for search. Open SEC-4.3 in the reference library.
FSC codified list of licences, authorisations, approvals, recognitions and registrations ↗Register noteSecurities Act 2005 ↗Register noteFSC licensing and fees amendment rules 2026 ↗Register noteFSC Circular Letter CL20260107 — review of fees and renewal of licences ↗Register noteFSC rules and regulations directory ↗Register note
PAUSE & REFLECT
Check your understanding.
Three questions to make the ideas stick. Your score is saved on this browser; this is a learning exercise, not a qualification.
Follow the sources.
Each title opens the published text. The register note records the edition used for this course.
- FSC codified list of licences, authorisations, approvals, recognitions and registrations ↗ All published category codes, fees, forms and licensing-criteria columns; consolidation as at 1 July 2026 · Register note
- Financial Services Act 2007 ↗ Sections 2, 14, 14A, 16–18, 25, 33, 71A, 72, 77, 77A, 77B, 77C, 78, 79A; Second Schedule Parts I–III; Fifth Schedule · Register note
- FSC licensing and fees amendment rules 2026 ↗ Rule 3 and replacement First Schedule; rule 4 commencement · Register note
- FSC Circular Letter CL20260107 — review of fees and renewal of licences ↗ 1 July 2026 fee review; annual-fee due date 30 September 2026; FSCOne alternative arrangements · Register note
- FSC rules and regulations directory ↗ Consolidated licensing and fees rules; sector-specific rules including Securities (Licensing) Rules and Family Office Rules · Register note
- Securities Act 2005 ↗ Sections 9–11, 29–30, 53, 86, 97–101, 155(2)(xc) · Register note
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