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-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.
Without obtaining a certificate of commencement of business from the Securities and Exchange Board of India no depository can act as a depository.