Sections Particulars
Chapter I Preliminary
1 Short title, extent and commencement
(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 ...
2 Definitions
(1) In this Act, unless the context otherwise requires- (a) "beneficial owner" means a person whose name is recorded as such with a depository; (b) "Board" mea...
Chapter II Certificate Of Commencement Of Business
3 Certificate of commencement of business by depositories
(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-sec...
Chapter III Rights And Obligations Of Depositories, Participants, Issuers And Beneficial Owners
4 Agreement between depository and participant
(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 ...
5 Services of depository
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 service...
6 Surrender of certificate of security
(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 de...
7 Registration of transfer of securities with depository
(1) Every depository shall, on receipt of intimation from a participant, register the transfer of security in the name of the transferee. (2) If a beneficial o...
8 Options to receive security certificate or hold securities with depository
(1) Every person subscribing to securities offered by an issuer shall have the option either to receive the security certificates or hold securities with a de...
9 Securities in depositories to be in fungible form
(1) All securities held by a depository shall be dematerialized and shall be in a fungible form. 2[(2) Nothing contained in sections 153, 153A, 153B, 187B, 18...
10 Rights of depositories and beneficial owner
(1) Notwithstanding anything contained in any other law for the time being in force, a depository shall be deemed to be the registered owner for the purposes ...
11 Register of beneficial owner
Every depository shall maintain a register and an index of beneficial owners in the manner provided in sections 150, 151 and 152 of the Companies Act, 1956 (1...
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 pled...
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 m...
14 Option to opt out in respect of any security
(1) If a beneficial owner seeks to opt out of a depository in respect of any security he shall inform the depository accordingly. (2) The depository shall on r...
15 Act 18 of 1891 to apply to depositories
The Bankers' Books Evidence Act, 1891 (18 of 1891) shall apply in relation to a depository as if it were a bank as defined in section 2 of that Act. ...
16 Depositories to indemnify loss in certain cases
(1) Without prejudice to the provisions of any other law for the time being in force, any loss caused to the beneficial owner due to the negligence of the dep...
17 Rights and obligations of depositories, etc
(1) Subject to the provisions of this Act, the rights and obligations of the depositories, participants and the issuers whose securities are dealt with by a d...
Chapter IV Enquiry And Inspection
18 Power of Board to call for information and enquiry
(1) The Board, on being satisfied that it is necessary in the public interest or in the interest of investors so to do, may, by order in writing- (a) call upo...
19 Power of Board to give directions in certain cases
Save as provided in this Act, if after making or causing to be made an enquiry or inspection, the Board is satisfied that it is necessary- (i) in the interest ...
Chapter V Penalty
20 Offences
Whoever contravenes or attempts to contravene or abets the contravention of the provisions of this Act or any regulations or bye-laws made thereunder shall be...
21 Offences by companies
(1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsi...
Chapter VI Miscellaneous
22 Cognizance of offences by courts
(1) No court shall take cognizance of any offence punishable under this Act or any regulations or bye-laws made thereunder, save on a complaint made by the Bo...
23 Appeals
(1) Any person aggrieved by 3[ an order of the Board made before the commencement of the Securities Laws (2nd Amendment) Act, 1999] under this Act, or the reg...
23A Appeal to Securities Appellate Tribunal
(1) Save as provided in sub-section (2), any person aggrieved by an order of the Board made, on and after the commencement of the Securities Laws (2nd Amendme...
23B Procedure and powers of Securities Appellate Tribunal
(1) The Securities Appellate Tribunal shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908, but shall be guided by the princi...
23C Right to legal representation
The appellate may either appear in person or authorize one or more chartered accountants or company secretaries or cost accountants or legal practitioners or ...
23D Limitation
The provisions of the Limitation Act, 1963 shall, as far as may be, apply to an appeal made to a Securities Appellate Tribunal. ...
23E Civil court not to have jurisdiction
No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which a Securities Appellate Tribunal is empowered by or u...
23F Appeal to High Court
Any person aggrieved by any decision order of the Securities Appellate Tribunal may file an appeal to the High Court within sixty days from the date of commun...
24 Power of Central Government to make rules
(1) The Central Government may by notification in the Official Gazette, make rules for carrying out the provisions of this Act. (2) In particular, and without ...
25 Power of Board to make regulations
(1) Without prejudice to the provisions contained in section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board may by notific...
26 Power of depositories to make bye-laws
(1) A depository shall, with the previous approval of the Board, make bye-laws consistent with the provisions of this Act and the regulations. (2) In particula...
27 Rules and regulations to be laid before Parliament
Every rule and every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session...
28 Application of other laws not barred
The provisions of this Act shall be in addition to, and not in derogation of, any other law for the time being in force relating to the holding and transfer o...
29 Removal of difficulties
(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such...
30 Amendments to certain enactment
The enactment specified in the Schedule to this Act shall be amended in the manner provided therein. ...
31 Repeal and saving
(1) The Depositories (Third) Ordinance, 1996 (Ordinance 28 of 1996) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken und...
The Schedule Amendments To Certain Enactments
Part I
Amendment to the Indian Stamp Act, 1899 After section 8, the following section shall be inserted, namely:- "8A. Securities not liable to stamp duty- Notwithsta...
Part II
"(45B) "Securities and Exchange Board of India" means the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Bo...
Part III
(i) "spot delivery contract" means a contract which provides for- (a) actual delivery of securities and the payment of a price therefor either on the same day...
Part IV
In section 45, after sub-section (2), the following sub-section shall be inserted, namely:- "(2A) Where any person has had at any time during previous year an...
Part V
In section 3, for sub-section (2), the following sub-section shall be substituted, namely:- "(2) Nothing in sub-section (1) shall apply to- (a) the purchase of...
Part VI
1. In section 2, in sub-section (2), for the words, brackets and figures "the Securities Contracts (Regulation) Act, 1956 (42 of 1956)", the words, brackets a...
Depositories (Appeal To Central Government) Rules, 1998
1 Short title and commencement
(1) These rules may be called the Depositories (Appeal to the Central Government) Rules, 1998. (2) They shall come into force on the date of their publication ...
2 Definitions
In these rules, unless the context otherwise requires- (a) "Act" means the Depositories Act, 1996 (22 of 1996); (b) "Authorized Representative" means- (i) in r...
3 Form of appeal
Any person aggrieved by an order of the Board made under the Act or the regulations made thereunder, may prefer an appeal to the Central Government in the For...
4 Time within which appeal is to be preferred
(1) An appeal shall be preferred by the aggrieved person within a period of thirty days from the date of communication to him of the order of the Board made u...
5 Payment of fees
(1) Every appeal shall be accompanied by a fee of rupees five thousand only. (2) The amount of fees shall be deposited in any Government Treasury or any branc...
6 Contents of appeal
Every appeal filed under rule 3 shall be written in English or Hindi and shall set forth concisely under distinct heads, the grounds of appeal without any arg...
7 What to accompany Form
Every appeal shall be filed in the Form in duplicate and shall be accompanied by two copies (at least one of which shall be a certified copy) of the order of ...
8 Filing of affidavits
Where a fact which can not be borne out by, or is contrary to, the record is alleged, it shall be stated clearly and concisely and supported by a duly sworn a...
9 Rights of appellant to appear before the Central Government
(1) Every appellant may appear before the Central Government in person or through his authorized representative. (2) An appellant may, by writing, authorize- (...
10 Authorizing a representative to appear
In an appeal by any appellant, where the Form is signed by his authorized representative, the appellant shall append to the Form documents authorizing the aut...
11 Authorization to be filed
An authorized representative appearing for the appellant at the hearing of an appeal shall, unless the document referred to in rule 10 has been appended, file...
12 Procedure for filing appeal
(1) An appeal shall be preferred by the appellant or his authorized representative to the Central Government in person or be sent by registered post addressed...
13 Furnishing of information and documents
(1) The Central Government may, before considering the appeal, require the appellant or the Board or both to furnish such further information and documents as...
14 Date and place of hearing of appeal to be communicated
The Central Government shall communicate, before considering the appeal, to the appellant or the Board or both the date and place of the hearing of the appeal...
15 Hearing of appeal
(1) On the day fixed or on any other day to which the bearing may be adjourned, the appellant shall be heard in support of the appeal. The Central Government ...
16 Orders by Central Government
The Central Government Shall- (a) after considering the appeal preferred to it under rule 3; (b) after considering further documentary evidence referred to in ...
17 Order to be signed and dated
The orders of the Central Government shall be in writing and shall be signed and dated. ...
18 Order to be communicated to the party
(1) The Central Government shall, after the order is signed, cause it to be communicated to the appellant and the Board. (2) Any person other than appellant or...
Form Appeal
From (Mention the name and address of the appellant here) To The Secretary to the Government of India, Department of Economics Affairs, Ministry of Finance, Nor...
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