The circular specifies conditions regarding segregation of activities, outsourcing, vault requirements, governance obligations, risk management, technology infrastructure, business continuity planning, and reporting obligations for custodians. Custodians that are not banks or bank affiliates must conduct financial services within and outside SEBI’s regulatory purview through separate Strategic Business Units (SBUs) and maintain separate accounts while meeting net worth requirements excluding the SBU books. Custodians providing unregulated services must disclose this to clients and obtain acknowledgements regarding lack of SEBI grievance recourse.