CASE STUDY: Custody Services for Family office Clients
Client particulars: Late Colonel & his Medical Practitioner wife (80 years old)
After death of Colonel on 18th July 2010, it was extremely difficult for his educated doctor
wife to manage her financials including consolidating the investments that comprised of
about 25 equity shares, 32 folios in a variety of Mutual Funds, Post office deposits, Fixed
Deposits with banks and Corporates, PPF deposits and Real Estate investments.
Consolidating the MF investments was the most complex as some were also in his single
name and there were spelling variations too.
In the aforesaid background, the lady appointed ORBIS FINANCIAL CORPORATION LTD
(Orbis) as Custodian of her Financial Assets.
Activities undertaken by Orbis as Custodian
• Opened Trading A/c with Broker
• Opened DP Account at Orbis with POA
• Opened Bank Accounts at HDFC Bank & Yes Bank with POA
• Facilitated transfer of shares from joint demat account in Stock Holding to her demat
account in Orbis
• Facilitated transmission of Shares and Mutual Funds in the name of the lady
Name Mismatch between Death Certificate & PAN Card
Some Mutual funds were in single name of the Colonel
Dormant PPF Account
Multiple visits to Post Office for liquidation of deposits
Succession Certificate obtained for transmission of single name
Affidavits obtained from the Court
Indemnity Bond executed in favour of the beneficiary as Legal Heir for
Activated Dormant PPF account by depositing Penalty Amount
Change of designated Bank Account at AMCs
Change of address with the AMCs
Net Worth Certificate obtained from Chartered Accountant for Bank
• Follow-up with AMCs for redemption of Mutual Funds
• Facilitated sale of shares on the Custodian platform through the designated broker.
• Consolidated Financial Assets into few secured Asset Classes such as Bank FDs,
Liquid MFs and Secured Loans based on risk profile
• Cash Management through deposits of surplus funds in Liquid MFs and Bank Term
• Follow-up with Banks for Fixed Deposit Receipts, Interest calculations, TDS
Certificates, Statements, etc.
• Facilitated Loan against Shares portfolio including risk administration.
• Follow-up for Corporate Actions (Interest & Dividend recovery)
• Reconciliation of Interest due, received & TDS Certificates
• Facilitating incorporation of her Trust for Charitable purposes
• Administration of Charitable Trusts, liaison with Tax Consultant for registration U/S
80G of Income Tax Act, Opening of Bank Accounts, Fixed Deposits, etc.
• Facilitating monitoring of “utilization of Trust’s funds for designated purposes
• Loan Book Administration
Disbursal of Loans to the Borrowers as per client instructions
Administering Collaterals & Margins against Loans disbursed
Administrating Margin Top-ups and swapping of collaterals
• Fund Accounting & Reporting
Maintenance of books of accounts
Reconciliation with Bank Statement, TDS Certificates, MF Statements, Demat
Daily risk monitoring of her loan against shares portfolio.
Daily Updation of books of accounts (Fund Accounting Services) leading upto
monthly reporting of PL and Balance Sheet
Providing Annual Accounts, details of Income & Expenses and other supports
to clients Tax Consultant
• Facilitated Third Party Payments on behalf of Client
Escrow Management for payments to Developer for her residential property
at Malcha Marg, New Delhi. Liaison with lawyers for legal documents,
monitoring of payments linked to progress of construction, release of
payment against the same, etc.
Liaison with Income Tax Consultant for Income Tax Computation & filing of
Annual Tax Return
Deposit of Advance Tax and Self Assessment Tax
Monthly transfers to her expense account for her monthly expenses including
donations as approved by her.
Current Status of Clients portfolio
Only two mutual fund holdings remain pending since they are still in the lock in
All the rest of client’s assets (excluding real estate) under the Custodian power of
attorney but in the name of the Client
Clients registered Will in our possession with a designated lawyer as the Executor
Tax lawyer in place who looks after the tax returns on her behalf