Laws and Bare Acts of India at MyNation.net

MyNation Foundation Online Law Library

Section 26 – The Depositories Act, 1996

The Depositories Act, 1996

 

 

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 particular, and without prejudice to the generality of the foregoing power, such bye-laws shall provide for –

 

(a) the eligibility criteria for admission and removal of securities in the depository;

 

(b) the conditions subject to which the securities shall be dealt with;

 

(c) the eligibility criteria for admission of any person as a participant;

 

(d) the manner and procedure for dematerialization of securities;

 

(e) the procedure for transactions within the depository;

 

(f) the manner in which securities shall be dealt with or withdrawn from a depository;

 

(g) the procedure for ensuring safeguards to protect the interests of participants and beneficial owners;

 

(h) the conditions of admission into and withdrawal from a participant by a beneficial owner;

 

(i) the procedure for conveying information to the participants and beneficial owners on dividend declaration, shareholder meetings and other matters of interest to the beneficial owners;

 

(j) the manner of distribution of dividends, interest and monetary benefits received from the company among beneficial owners;

 

(k) the manner of creating pledge or hypothecation in respect of securities held with a depository;

 

(l) inter se rights and obligations among the depository, issuer, participants and beneficial owners;

 

(m) the manner and the periodicity of furnishing information to the Board, issuer and other persons;

 

(n) the procedure for resolving disputes involving depository, issuer, company or a beneficial owner;

 

(o) the procedure for proceeding against the participant committing breach of the regulations and provisions for suspension and expulsion of participants from the depository and cancellation of agreements entered with the depository;

 

(p) the internal control standards including procedure for auditing, reviewing and monitoring.

 

(3) Where the Board considers it expedient so to do, it may, by order in writing, direct a depository to make any bye-laws or to amend or revoke any bye-laws already made within such period as it may specify in this behalf.

 

(4) If the depository fails or neglects to comply with such order within the specified period, the Board may make the bye-laws or amend or revoke the bye-laws made either in the form specified in the order or with such modifications thereof as the Board thinks fit.

 

Comments

The meaning of bye-laws as defined under section 2(1) of this Act is regulated by this section.

 

 

Previous | Next

 

The Depositories Act, 1996

 

Indian Laws – Bare Acts

Leave a Reply

Your email address will not be published. Required fields are marked *


Not found ...? HOW TO WIN 498a, DV, DIVORCE; Search in Above link

All Law documents and Judgment copies
Landmark Judgments
Important SC/HC Judgements on 498A IPC
Rules and Regulations of India.
Copyright © 2021 Laws and Bare Acts of India at MyNation.net
×

Free Legal Help, Just WhatsApp Away

MyNation HELP line

We are Not Lawyers, but No Lawyer will give you Advice like We do

Please read Group Rules – CLICK HERE, If You agree then Please Register CLICK HERE and after registration  JOIN WELCOME GROUP HERE

We handle Women Centric biased laws like False Section 498A IPC, Domestic Violence(DV ACT), Divorce, Maintenance, Alimony, Child Custody, HMA 24, 125 CrPc, 307, 312, 313, 323, 354, 376, 377, 406, 420, 497, 506, 509; TEP, RTI and many more…

MyNation FoundationMyNation FoundationMyNation Foundation