The Depositories Act, 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.

(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" means the Securities and Exchange Board of India established under section 3 of theSecurities and Exchange Board of India Act, 1992 (15 of 1992); (c) "bye-laws" means bye-laws made by a depository under section 26; (d) "Company Law Board" means the Board of Company Law Administration constituted undersection 10E of the Companies Act, 1956 (1 of 1956); (e) "depository" means a company formed and registered under the Companies Act,1956 (1 of 1956) and which has been granted a certificate of registration under sub-section (1A) ofsection 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (f) "issuer" means any person making an issue of securities; (g) "participant" means a person registered as such under sub-section (1A) of section 12 of theSecurities and Exchange Board of India Act, 1992 (15 of 1992); (h) "prescribed" means prescribed by rules made under this Act; (i) "record" includes the records maintained in the form of books or stored in a computer or insuch other form as may be determined by regulations; (j) "registered owner" means a depository whose name is entered as such in the register of theissuer; (k) "regulations" means the regulations made by the Board; 1[(ka) "Securities Appellate Tribunal" means a Securities Appellate Tribunal established undersub-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 ofownership of securities in the record of a depository. (2) Words and expressions used herein and not defined but defined in the Companies Act,1956 (1 of 1956) or the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or the Securities andExchange Board of India Act, 1992 (15 of 1992), shall have the meanings respectively assigned to themin those Acts.

(1) No depository shall act as adepository 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 theregulations. (3) The Board shall not grant it certificate under sub-section (1) unless it is satisfied that thedepository 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 hasbeen given a reasonable opportunity of being heard.

(1) A depository shall enter into an agreementwith 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.

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