A custodian in a financial market is the one who holds the securities, for safekeeping and clearing, on behalf of its customers who are trading members in a market (brokers). The custodian, as registered by Sebi, settles a trade on behalf of its client, a trading member.
Custodians in India include Axis Bank, Kotak Mahindra Bank, SBI. Registered , we can find the list of registered custodians is available on the Sebi website.
A custodian holds a security either in its electronic form (dematerialised or demat) or in its physical form.