Custodian to the nation
Sep 2024
With shifts in regulation and the continuing move towards a faster settlement cycle, custodial services in India are growing increasingly important. StockHolding looks at how its offering supports clients
Image: jamesteohart/stock.adobe.com
India based Stock Holding Corporation of India, popularly known as ‘StockHolding’, was incorporated as a public limited company in 1986. The company is promoted by leading financial institutions and insurance majors of India. Since inception, the company has evolved steadily to be a financial powerhouse, offering a basket of products and services that provides ease in financial planning needs of corporations and individuals.
StockHolding pioneered custody services in India, and with over three decades of experience, has brought an entire spectrum of financial products and services to the country, enabling wealth creation and the growth of its clients.
It initiated holding securities in electronic form, thereby setting the trend for the capital markets to follow. This eased the raising of capital by companies, reducing risk, protecting assets, managing documents, and imparting training.
On the back of this, the corporation has been a pioneer in various fields in the Indian capital markets.
As a pioneer, and as the first tech-driven custodian in India, StockHolding bring a wide range of services — including securities custody, clearing and settlement, and asset servicing — to a diverse set of institutional and non-institutional clients.
It manages assets under custody of over US$95 billion, across both domestic and foreign clients. Its role as a custodian is pivotal in ensuring the safekeeping and efficient management of financial assets on behalf of its clients. StockHolding’s robust infrastructure, coupled with its deep understanding of regulatory frameworks and market dynamics, its deep expertise and its tech-driven solutions, has established the company as a trusted partner for institutional investors, foreign portfolio investors (FPIs), foreign direct investors (FDIs), banks, asset management companies and other financial entities.
Having pioneered demat services in India since 1998, to all customers on both National Securities Depository Limited (NDSL) and Central Depository Securities Limited (CDSL), StockHolding is also empanelled as a repository participant enabling it to hold commodities in an electronic form.
It also offers services such as demat and broking, fixed income products, pension products, document management and insurance solutions.
StockHolding houses three subsidiary companies: StockHolding Services Limited (SSL), StockHolding Document Management Services (SDMS), and StockHolding Securities IFSC Limited (SSIL).
SSL offers broking services in cash, derivatives, currency, and commodity segments. It is acknowledged for providing speedy, safe and reliable broking services to its retail and institutional clients.
SDMS offers end-to-end document and data management solutions, both in physical and digital domains, across India for various corporate and government entities.
SSIL is a trading and clearing member of India International Exchange (INX), NSE IFSC and India International Bullion Exchange (IIBX) in IFSC.
A cornerstone of StockHolding’s success is its client-centric approach, which is manifested through its dedicated client service team. This set the high standards for the custodians who subsequently set up business. This team plays a crucial and proactive role in providing personalised services and addressing client needs effectively. Key aspects include personalised support, proactive communication, customised reports, proprietary systems, problem resolution, efficient operations and enhanced transparency.
The Indian capital market witnessed a significant transformation with the shift from T+2 to T+1 and then to T+0 settlement cycle. This change enhances the efficiency, liquidity and overall attractiveness of the Indian financial market, improved liquidity, de-risked the market and more. As India moves to T+0 settlement, managing the overlap with the existing T+1 cycle presents unique challenges.
The role of custodians becomes crucial in managing both T+1 and T+0 settlement cycles concurrently. StockHolding, as a leading custodian, is adept at navigating these complexities due to its robust proprietary system capabilities, which are managed in-house with experienced and expert workforce. It is well acknowledged that most of the custodians are staffed by erstwhile employees of StockHolding custody. StockHolding has successfully managed both T+2 and T+1 settlements concurrently. This experience is testament to its ability to handle multiple settlement cycles efficiently.
The trained workforce at StockHolding are adept at providing support across different settlement timelines per the differentiated requirements. This expertise ensures that clients are able to navigate the intricacies of cross-border settlements and multifaceted financial instruments with precision. On average, StockHolding processes over three lakh transactions a year.
In recent regulatory shifts, the role of custodians has taken centre stage in the financial services industry. The requirement for alternative investment funds (AIFs) and portfolio management services (PMSs) to mandatorily appoint custodians has redefined the operational landscape, emphasising the critical importance of custodians like StockHolding. This regulatory change aims to enhance oversight, safeguard assets and ensure transparency in financial operations.
As custodians are entrusted with the safe-keeping and management of assets their responsibilities have expanded to include:
Enhanced security – With assets under a custodian, safeguarding against fraud, loss, or mismanagement is paramount. StockHolding has invested heavily in state-of-the-art security measures and technology to ensure asset protection.
Operational efficiency – An effective custodian is required to maintain meticulous attention to detail in transaction processing and settlement with minimal failures. Towards this objective, StockHolding excels in streamlining these processes, thereby reducing the operational risks and enhancing efficiency.
Regulatory compliance – Navigating complex regulatory environments is a significant challenge for both domestic and cross-border investors. StockHolding’s expertise in regulatory understanding and its relationship with the regulators ensures that the clients remain compliant with current legislation, avoiding potential legal pitfalls.
Transparency and reporting – The need for accurate and transparent reporting has never been more critical. StockHolding provides comprehensive and highly customised reporting, fostering trust and informed decision-making.
Client support – Beyond technical capabilities, effective custodianship involves exceptional round the clock client service. StockHolding is recognised for its responsive and supportive approach addressing client needs promptly and effectively.
In conclusion, StockHolding’s comprehensive suite of services over the last four decades, positions it as the ideal custodian for cross-border investors looking to engage with the Indian domestic market and in IFSC.
As international investors seek a trusted custodian to facilitate their investments in India’s dynamic market and the emerging opportunities within IFSC, StockHolding stands out as a comprehensive, secure and clientfocused choice.
StockHolding pioneered custody services in India, and with over three decades of experience, has brought an entire spectrum of financial products and services to the country, enabling wealth creation and the growth of its clients.
It initiated holding securities in electronic form, thereby setting the trend for the capital markets to follow. This eased the raising of capital by companies, reducing risk, protecting assets, managing documents, and imparting training.
On the back of this, the corporation has been a pioneer in various fields in the Indian capital markets.
As a pioneer, and as the first tech-driven custodian in India, StockHolding bring a wide range of services — including securities custody, clearing and settlement, and asset servicing — to a diverse set of institutional and non-institutional clients.
It manages assets under custody of over US$95 billion, across both domestic and foreign clients. Its role as a custodian is pivotal in ensuring the safekeeping and efficient management of financial assets on behalf of its clients. StockHolding’s robust infrastructure, coupled with its deep understanding of regulatory frameworks and market dynamics, its deep expertise and its tech-driven solutions, has established the company as a trusted partner for institutional investors, foreign portfolio investors (FPIs), foreign direct investors (FDIs), banks, asset management companies and other financial entities.
Having pioneered demat services in India since 1998, to all customers on both National Securities Depository Limited (NDSL) and Central Depository Securities Limited (CDSL), StockHolding is also empanelled as a repository participant enabling it to hold commodities in an electronic form.
It also offers services such as demat and broking, fixed income products, pension products, document management and insurance solutions.
StockHolding houses three subsidiary companies: StockHolding Services Limited (SSL), StockHolding Document Management Services (SDMS), and StockHolding Securities IFSC Limited (SSIL).
SSL offers broking services in cash, derivatives, currency, and commodity segments. It is acknowledged for providing speedy, safe and reliable broking services to its retail and institutional clients.
SDMS offers end-to-end document and data management solutions, both in physical and digital domains, across India for various corporate and government entities.
SSIL is a trading and clearing member of India International Exchange (INX), NSE IFSC and India International Bullion Exchange (IIBX) in IFSC.
A cornerstone of StockHolding’s success is its client-centric approach, which is manifested through its dedicated client service team. This set the high standards for the custodians who subsequently set up business. This team plays a crucial and proactive role in providing personalised services and addressing client needs effectively. Key aspects include personalised support, proactive communication, customised reports, proprietary systems, problem resolution, efficient operations and enhanced transparency.
The Indian capital market witnessed a significant transformation with the shift from T+2 to T+1 and then to T+0 settlement cycle. This change enhances the efficiency, liquidity and overall attractiveness of the Indian financial market, improved liquidity, de-risked the market and more. As India moves to T+0 settlement, managing the overlap with the existing T+1 cycle presents unique challenges.
The role of custodians becomes crucial in managing both T+1 and T+0 settlement cycles concurrently. StockHolding, as a leading custodian, is adept at navigating these complexities due to its robust proprietary system capabilities, which are managed in-house with experienced and expert workforce. It is well acknowledged that most of the custodians are staffed by erstwhile employees of StockHolding custody. StockHolding has successfully managed both T+2 and T+1 settlements concurrently. This experience is testament to its ability to handle multiple settlement cycles efficiently.
The trained workforce at StockHolding are adept at providing support across different settlement timelines per the differentiated requirements. This expertise ensures that clients are able to navigate the intricacies of cross-border settlements and multifaceted financial instruments with precision. On average, StockHolding processes over three lakh transactions a year.
In recent regulatory shifts, the role of custodians has taken centre stage in the financial services industry. The requirement for alternative investment funds (AIFs) and portfolio management services (PMSs) to mandatorily appoint custodians has redefined the operational landscape, emphasising the critical importance of custodians like StockHolding. This regulatory change aims to enhance oversight, safeguard assets and ensure transparency in financial operations.
As custodians are entrusted with the safe-keeping and management of assets their responsibilities have expanded to include:
Enhanced security – With assets under a custodian, safeguarding against fraud, loss, or mismanagement is paramount. StockHolding has invested heavily in state-of-the-art security measures and technology to ensure asset protection.
Operational efficiency – An effective custodian is required to maintain meticulous attention to detail in transaction processing and settlement with minimal failures. Towards this objective, StockHolding excels in streamlining these processes, thereby reducing the operational risks and enhancing efficiency.
Regulatory compliance – Navigating complex regulatory environments is a significant challenge for both domestic and cross-border investors. StockHolding’s expertise in regulatory understanding and its relationship with the regulators ensures that the clients remain compliant with current legislation, avoiding potential legal pitfalls.
Transparency and reporting – The need for accurate and transparent reporting has never been more critical. StockHolding provides comprehensive and highly customised reporting, fostering trust and informed decision-making.
Client support – Beyond technical capabilities, effective custodianship involves exceptional round the clock client service. StockHolding is recognised for its responsive and supportive approach addressing client needs promptly and effectively.
In conclusion, StockHolding’s comprehensive suite of services over the last four decades, positions it as the ideal custodian for cross-border investors looking to engage with the Indian domestic market and in IFSC.
As international investors seek a trusted custodian to facilitate their investments in India’s dynamic market and the emerging opportunities within IFSC, StockHolding stands out as a comprehensive, secure and clientfocused choice.
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