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Central Bare Acts 1996

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Depositories Act, 1996 (22 of 1996) Preamble 1

Title : Depositories Act, 1996

State : Central

Year : 1996

THE DEPOSITORIES ACT, 1996 [Act, No. 22 of 1996] [10th August, 1996] PREAMBLE An Act to provide for regulation of depositories in securities and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows:--

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Depositories Act, 1996 (22 of 1996) Chapter 1

Title : Preliminary

State : Central

Year : 1996

.....form as may be determined by regulations; (j) "registered owner" means a depository whose name is entered as such in the register of the issuer; (k) "regulations" means regulations made by the Board; 1[(ka) "Securities Appellate Tribunal" means a Securities Appellate Tribunal established under sub-section (1) of section 15K of the Securities and Exchange Board of India Act, 1992 (15 of 1992);] (l) "security" means such security as may be specified by the Board; (m) "service" means any service connected with recording of allotment of securities or transfer of ownership of Securities in the record of a depository. (2) Words and expressions used herein and not defined but defined in the Companies Act, 1956 (l of 1956), or the Securities Contracts (Regulation) Act, 1956 (42 of 1956), or the Securities and Exchange Board of India Act, 1992 (15 of 1992), shall have the meanings respectively assigned to them in those Acts. ________________________ 1. Insterted by Act 32 of 1999, section 13 (w.e.f. 16-12-1999).

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Depositories Act, 1996 (22 of 1996) Section 1

Title : Short Title, Extent and Commencement

State : Central

Year : 1996

(1) This Act may be called the Depositories Act, 1996. (2) It extends to the whole of India. (3) It shall be deemed to have come into force on the 20th day of September, 1995.

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Depositories Act, 1996 (22 of 1996) Section 2

Title : Definitions

State : Central

Year : 1996

.....form as may be determined by regulations; (j) "registered owner" means a depository whose name is entered as such in the register of the issuer; (k) "regulations" means regulations made by the Board; 1[(ka) "Securities Appellate Tribunal" means a Securities Appellate Tribunal established under sub-section (1) of section 15K of the Securities and Exchange Board of India Act, 1992 (15 of 1992);] (l) "security" means such security as may be specified by the Board; (m) "service" means any service connected with recording of allotment of securities or transfer of ownership of Securities in the record of a depository. (2) Words and expressions used herein and not defined but defined in the Companies Act, 1956 (l of 1956), or the Securities Contracts (Regulation) Act, 1956 (42 of 1956), or the Securities and Exchange Board of India Act, 1992 (15 of 1992), shall have the meanings respectively assigned to them in those Acts. ________________________ 1. Insterted by Act 32 of 1999, section 13 (w.e.f. 16-12-1999).

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Depositories Act, 1996 (22 of 1996) Chapter II

Title : Certificate of Commencement of Business

State : Central

Year : 1996

(1) No depository shall act as a depository unless it obtains a certificate of commencement of business from the Board. (2) A certificate granted under sub-section (1) shall be in such form as may be specified by the regulations. (3) The Board shall not grant a certificate under sub-section (1) unless it is satisfied that the depository has adequate systems and safeguards to prevent manipulation of records and transactions: Provided that no certificate shall be refused under this section unless the depository concerned has been given a reasonable opportunity of being heard.

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Depositories Act, 1996 (22 of 1996) Section 3

Title : Certificate of Commencement of Business by Depositories

State : Central

Year : 1996

(1) No depository shall act as a depository unless it obtains a certificate of commencement of business from the Board. (2) A certificate granted under sub-section (1) shall be in such form as may be specified by the regulations. (3) The Board shall not grant a certificate under sub-section (1) unless it is satisfied that the depository has adequate systems and safeguards to prevent manipulation of records and transactions: Provided that no certificate shall be refused under this section unless the depository concerned has been given a reasonable opportunity of being heard.

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Depositories Act, 1996 (22 of 1996) Chapter III

Title : Rights and Obligations of Depositories, Participants Issuers and Beneficial Owners

State : Central

Year : 1996

..... Section 11 - Register of beneficial owner Every depository shall maintain a register and an index of beneficial owners in the manner provided in section 150, section 151 and section 152 of the Companies Act, 1956 (1 of 1956). Section 12 - Pledge or hypothecation of securities held in a depository (1) Subject to such regulations and bye-laws, as may be made in this behalf, a beneficial owner may with the previous approval of the depository create a pledge or hypothecation in respect of a security owned by him through a depository. (2) Every beneficial owner shall give intimation of such pledge or hypothecation to the depository and such depository shall thereupon make entries in its records accordingly. (3) Any entry in the records of a depository under sub-section (2) shall be evidence of a pledge or hypothecation. Section 13 - Furnishing of information and records by depository and issuer (1) Every depository shall furnish to the issuer information about the transfer of securities in the name of beneficial owners at such intervals and in such manner as may be specified by the bye-laws. (2) Every issuer shall make available to the depository copies of the.....

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Depositories Act, 1996 (22 of 1996) Section 4

Title : Agreemenf Between Depository and Participant

State : Central

Year : 1996

(1) A depository shall enter into an agreement with one or more participants as its agent. (2) Every agreement under sub-section (1) shall be in ,such form as may be specified by the bye-laws.

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Depositories Act, 1996 (22 of 1996) Section 5

Title : Services Ofdepository

State : Central

Year : 1996

Any person, through a participant, may enter into an agreement, in such form as may be specified by the bye-laws, with any depository for availing its services.

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Depositories Act, 1996 (22 of 1996) Section 6

Title : Surrender of Certificate of Security

State : Central

Year : 1996

(1) Any person who has entered into an agreement under section 5 shall surrender the certificate of security, for which he seeks to avail the services of a depository, to the issuer in such manner as may be specified by the regulations. (2) The issuer, on receipt of certificate of security under sub-section (1), shall cancel the certificate of security and substitute in its records the name of the depository as a registered owner in respect of that security and inform the depository accordingly. (3) A depository shall, on receipt of information under sub-section (2), enter the name of the person referred to in sub-section (1) in its records, as the beneficial owner.

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