Custodial Account

A Custodial Account is a financial account held and managed by a custodian—typically a bank, brokerage, or financial institution—on behalf of a beneficial owner, often a minor or an institutional investor. In the context of securities markets, custodians hold financial assets (shares, bonds, mutual fund units) and are responsible for settlement, record-keeping, corporate action processing, and regulatory compliance. SEBI-registered custodians in India include organisations like Deutsche Bank and Axis Bank, which hold assets for Foreign Portfolio Investors (FPIs) and other institutional clients.