NEW DELHI: Private sector lender Yes Bank on Monday announced that it is now eligible to begin offering custodial services to financial market participants like foreign portfolio investors (FPI) and foreign institutional investors (FII).
In a statement, the bank said that it has received a licence from the Securities and Exchange Board of India’s (SEBI) to act as a custodian of securities. Being a custodian of securities allows institutions that have the requisite license to hold various securities for their clients or customers.
With Yes Bank now able to offer these services, it is set to enhance synergies in its capital market business. “Custodial Services will complement Yes Bank’s existing capital market offerings and enable the bank to play a larger role in channelising domestic and foreign investments into Indian financial markets,” managing director Rana Kapoor said.
The bank also stated that it has also leveraged its global reach through its international banking team, the IFSC banking unit in GIFT City and its representative office in Abu Dhabi as a part of its strategy. "In line with the same, we are already providing banking services to more than 25 FPIs currently through our capital markets team," Yes Bank said, adding that the custody business will allow the bank to comprehensively service the FPIs, alternative investment funds and portfolio management service firms, as more and more investors look to participate in this exponential growth phase of the country.
The bank will also be opening representative offices in London and Singapore as per recent approval from the Reserve Bank of India.