What do you understand by Depository Act 1996?

The Depositories Act, 1996 is an Act to provide for regulation of depositories in securities and for matters connected therewith or incidental thereto. Certificate of Commencement of Business: No depository shall act as a depository unless it obtains a certificate of commencement of business from SEBI.

Who is registered owner as per the Depository Act 1996?

Issuer means any person making an issue of securities. Participant means a person registered under the Securities and Exchange Board of India Act, 1992. Registered Owner means a depository whose name is entered as such in the register of the issuer.

What is the Maxmum penalty for Offences under Depository Act with reference to imprisonment?

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 punishable with imprisonment for a term which may extend to five years, or with fine, or with both.”

What are the penalty S under the Depositories Act 1996?

Power of SEBI to issue penalties

Section No.	Penalty imposed by SEBI
Section 15B	A Penalty of one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees.

What is the role of a depository?

A depository can be an organization, bank, or institution that holds securities and assists in the trading of securities. A depository provides security and liquidity in the market, uses money deposited for safekeeping to lend to others, invests in other securities, and offers a funds transfer system.

Which is the first depository of India?

National Securities Depository Limited (NSDL)
The promulgation of the Depositories ordinance in 1995 paved the way for the establishment of National Securities Depository Limited (NSDL), the first depository in India.

What does NSDL mean?

National Securities Depository Limited
About NSDL. National Securities Depository Limited Home Contact Us.

Is NSDL a depository participant?

Understanding depositories and depository participants: Both NSDL and CDSL are depositories which maintain ownership records of financial securities. They are linked with investors through Depository Participants (DPs). A DP is an agent of the depository acting as an intermediary between the depository and its clients.

What is the minimum net worth required for a depository?

What is the minimum net worth required for a depository? The minimum net worth stipulated by SEBI for a depository is Rs. 100 crore.

What is the role of depository?

A depository provides security and liquidity in the market, uses money deposited for safekeeping to lend to others, invests in other securities, and offers a funds transfer system. A depository must return the deposit in the same condition upon request.

What is Depositories Act 1996?

THE DEPOSITORIES ACT, 1996. No. 22 of 1996 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:-. CHAPTER I PRELIMINARY 1.

What is depositories Regulation Act?

[10th August, 1996] An Act to provide for regulation of depositories in securities and for matters connected therewith and incidental thereto. Be it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows:-

What is sub section (1) of the Depository Act?

– (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.

When does the Bankers’Books Evidence Act 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.