Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018

Oct 09, 2018 | by Avantis RegTech Legal Research Team


The Securities and Exchange Board of India (SEBI) on October 03, 2018 has published Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018. The new Regulations have been passed in supercession of the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996.

The SEBI (Depositories and Participants) Regulations, 2018 are divided into XI Chapters giving provisions on the following :

·         Chapter I specifies Short title and commencement and Definitions;

·         Chapter II specifies the procedure to be followed by applicant for registration as a Depository;

·         Chapter III specifies the procedure to be followed for acquiring the certificate of commencement of Business. The application under this chapter shall be made by a depository within a period of one year from the date of issue of certificate of registration;

·         Chapter IV specifies the eligibility criteria and general conditions to be followed for ownership of Depository;

·         Chapter V specifies the terms and conditions of governance of Depository i.e. Composition, Appointment, Code of conduct, Compensation and tenure, Segregation of regulatory departments, constitution of statutory committee and Disclosure and corporate governance norms;

·         Chapter VI specifies the procedure for obtaining certificate of registration as Participant;  

·         Chapter VII specifies the rights and obligations of depositories, participants, issuers, manner of surrender of certificate of security and creation of pledge or hypothecation;

·         Chapter VIII specifies the procedure for listing of Securities by Depository;

·         Chapter IX specifies the procedure to be followed by and rights of the SEBI to inspect the books of account, records, documents and infrastructure, systems and procedures, or to investigate the affairs of a depository, a participant, and a beneficial owner an issuer or its agent for any purposes mentioned in this Chapter;    

·         Chapter X specifies the procedure for action in case of default;

·         Chapter XI specifies the power of the SEBI related to the Regulations under the head ‘Miscellaneous’.

[No. SEBI/LAD-NRO/GN/2018/40]

URL: https://www.sebi.gov.in/legal/regulations/oct-2018/securities-and-exchange-board-of-india-depositories-and-participants-regulations-2018_40631.html


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