THE DEPOSITORIES ACT, 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:?
C!P"#R I
PRELIMINARY
1. Short title, extent an !o""en!e"ent$?%&' "his !ct may be called the (epositories !ct)
&**+$
%,' It e-tends to the whole of India$
%.' It shall be deemed to have come into force on the ,/th day of 0eptember) &**1$
#. De$inition%.&%&' In this !ct) unless the conte-t otherwise re2uires)?
%a' ????????beneficial owner? means a person whose name is recorded as such with a
depository3
%b' ????????Board? means the 0ecurities and #-chan4e Board of India established under
0ection . of the 0ecurities and #-chan4e Board of India !ct) &**, %&1 of &**,'3
%c' ?bye-laws? means bye-laws made by a depository under 0ection ,+3
%d' ????????Company 5aw Board? means the Board of Company 5aw !dministration
constituted under 0ection &/# of the Companies !ct) &*1+ %& of &*1+'3
%e' ????????depository? means a company formed and re4istered under the Companies
!ct) &*1+ %& of &*1+') and which has been 4ranted a certificate of re4istration under sub-section
%&!' of 0ection &, of the 0ecurities and #-chan4e Board of India !ct) &**, %&1 of &**,'3
%f' ????????issuer? means any person ma6in4 an issue of securities3
%4' ????????participant? means a person re4istered as such under sub-section %&!' of
0ection &, of the 0ecurities and #-chan4e Board of India !ct) &**, %&1 of &**,'3
%h' ????????prescribed? means prescribed by rules made under this !ct3
%i' ????????record? includes the records maintained in the form of boo6s or stored in a
computer or in such other form as may be determined by re4ulations3
%7' ????????re4istered owner? means a depository whose name is entered as such in the
re4ister of the issuer3
%6' ????????re4ulations? means the re4ulations made by the Board3
%l' ????????security? means such security as may be specified by the Board3
%m' ????????service? means any service connected with recordin4 of allotment of securities
or transfer of ownership of securities in the record of a depository$
%,' 8ords and e-pressions used herein and not defined but defined in the Companies !ct) &*1+
%& of &*1+') or the 0ecurities Contracts %Re4ulation' !ct) &*1+ %9, of &*1+') or the 0ecurities and
#-chan4e Board of India !ct) &**, %&1 of &**,') shall have the meanin4s respectively assi4ned
to them in those !cts$
C!P"#R II
CERTI'ICATE O' COMMENCEMENT O' ()SINESS
*. Certi$i!ate o$ !o""en!e"ent o$ +,%ine%% +- e.o%itorie%.?%&' :o depository shall act as
a depository unless it obtains a certificate of commencement of business from the Board$
%,' ! certificate 4ranted under sub-section %&' shall be in such form as may be specified by the
re4ulations$
%.' "he Board shall not 4rant a certificate under sub-section %&' unless it is satisfied that the
depository has ade2uate systems and safe4uards to prevent manipulation of records and
transactions:
Provided that no certificate shall be refused under this section unless the depository concerned
has been 4iven a reasonable opportunity of bein4 heard$
C!P"#R III
RI/HTS AND O(LI/ATIONS O' DEPOSITORIES, PARTICIPANTS,& ISS)ERS AND
(ENE'ICIAL O0NERS
1. A2ree"ent +et3een e.o%itor- an .arti!i.ant.?%&' ! depository shall enter into an
a4reement with one or more participants as its a4ent$
%,' #very a4reement under sub-section %&' shall be in such form as may be specified by the bye-
laws$
4. Ser5i!e% o$ e.o%itor-.?!ny person) throu4h a participant) may enter into an a4reement) in
such form as may be specified by the bye-laws) with any depository for availin4 its services$
6. S,rrener o$ !erti$i!ate o$ %e!,rit-.?%&' !ny person who has entered into an a4reement
under 0ection 1 shall surrender the certificate of security) for which he see6s to avail the services
of a depository) to the issuer in such manner as may be specified by the re4ulations$
%,' "he issuer) on receipt of certificate of security under sub-section %&') shall cancel the
certificate of security and substitute in its records the name of the depository as a re4istered
owner in respect of that security and inform the depository accordin4ly$
%.' ! depository shall) on receipt of information under sub-section %,') enter the name of the
person referred to in sub-section %&' in its records) as the beneficial owner$
6. Re2i%tration o$ tran%$er o$ %e!,ritie% 3ith e.o%itor-.?%&' #very depository shall) on receipt
of intimation from a participant) re4ister the transfer of security in the name of the transferee$
%,' If a beneficial owner or a transferee of any security see6s to have custody of such security the
depository shall inform the issuer accordin4ly$
7. O.tion% to re!ei5e %e!,rit- !erti$i!ate or hol %e!,ritie% 3ith e.o%itor-.?%&' #very
person subscribin4 to securities offered by an issuer shall have the option either to receive the
security certificates or hold securities with a depository$
%,' 8here a person opts to hold a security with a depository) the issuer shall intimate such
depository the details of allotment of the security) and on receipt of such information the
depository shall enter in its records the name of the allottee as the beneficial owner of that
security$
9. Se!,ritie% in e.o%itorie% to +e in $,n2i+le $or".?%&' !ll securities held by a depository
shall be dematerialised and shall be in a fun4ible form$
i
[1] ;%,' :othin4 contained in 0ections &1.) &1.!) &1.B) &<=B) &<=C and .=, of the Companies
!ct) &*1+ %& of &*1+') shall apply to a depository in respect of securities held by it on behalf of the
beneficial owners$>
18. Ri2ht% o$ e.o%itorie% an +ene$i!ial o3ner.&%&' :otwithstandin4 anythin4 contained in
any other law for the time bein4 in force) a depository shall be deemed to be the re4istered owner
for the purposes of effectin4 transfer of ownership of security on behalf of a beneficial owner$
%,' 0ave as otherwise provided in sub-section %&') the depository as a re4istered owner shall not
have any votin4 ri4hts or any other ri4hts in respect of securities held by it$
%.' "he beneficial owner shall be entitled to all the ri4hts and benefits and be sub7ected to all the
liabilities in respect of his securities held by a depository$
11. Re2i%ter o$ +ene$i!ial o3ner.&#very depository shall maintain a re4ister and an inde- of
beneficial owners in the manner provided in 0ection &1/) 0ection &1& and 0ection &1, of the
Companies !ct) &*1+ %& of &*1+'$
1#. Ple2e or h-.othe!ation o$ %e!,ritie% hel in a e.o%itor-.&%&' 0ub7ect to such
re4ulations and bye-laws) as may be made in this behalf) a beneficial owner may with the
previous approval of the depository create a pled4e or hypothecation in respect of a security
owned by him throu4h a depository$
%,' #very beneficial owner shall 4ive intimation of such pled4e or hypothecation to the depository
and such depository shall thereupon ma6e entries in its records accordin4ly$
%.' !ny entry in the records of a depository under sub-section %,' shall be evidence of a pled4e or
hypothecation$
1*. ',rni%hin2 o$ in$or"ation an re!or% +- e.o%itor- an i%%,er.&%&' #very depository
shall furnish to the issuer information about the transfer of securities in the name of beneficial
owners at such intervals and in such manner as may be specified by the bye-laws$
%,' #very issuer shall ma6e available to the depository copies of the relevant records in respect of
securities held by such depository$
11. O.tion to o.t o,t in re%.e!t o$ an- %e!,rit-.&%&' If a beneficial owner see6s to opt out of a
depository in respect of any security he shall inform the depository accordin4ly$
%,' "he depository shall on receipt of intimation under sub-section %&' ma6e appropriate entries in
its records and shall inform the issuer$
%.' #very issuer shall) within thirty days of the receipt of intimation from the depository and on
fulfilment of such conditions and on payment of such fees as may be specified by the re4ulations)
issue the certificate of securities to the beneficial owner or the transferee) as the case may be$
14. The (an9er%: (oo9% E5ien!e A!t to a..l- to e.o%itorie%.?"he Ban6er?s Boo6s
#vidence !ct) &<*& %&< of &<*&') shall apply in relation to a depository as if it were a ban6 as
defined in 0ection , of that !ct$
16. De.o%itorie% to ine"ni$- lo%% in !ertain !a%e%.&%&' 8ithout pre7udice to the provisions of
any other law for the time bein4 in force) any loss caused to the beneficial owner due to the
ne4li4ence of the depository or the participant) the depository shall indemnify such beneficial
owner$
%,' 8here the loss due to the ne4li4ence of the participant under sub-section %&' is indemnified by
the depository) the depository shall have the ri4ht to recover the same from such participant$
16. Ri2ht% an o+li2ation% o$ e.o%itorie%, et!.&%&' 0ub7ect to the provisions of this !ct) the
ri4hts and obli4ations of the depositories) participants and the issuers whose securities are dealt
with by a depository shall be specified by the re4ulations$
%,' "he eli4ibility criteria for admission of securities into the depository shall be specified by the
re4ulations$
C!P"#R I?
EN;)IRY AND INSPECTION
17. Po3er o$ (oar to !all $or in$or"ation an en<,ir-.?%&' "he Board) on bein4 satisfied that
it is necessary in the public interest or in the interest of investors so to do) may) by order in
writin4)?
%a' call upon any issuer) depository) participant or beneficial owner to furnish in writin4 such
information relatin4 to the securities held in a depository as it may re2uire3 or
%b' ???????authorise any person to ma6e an en2uiry or inspection in relation to the affairs of
the issuer) beneficial owner) depository or participant) who shall submit a report of such en2uiry or
inspection to it within such period as may be specified in the order$
%,' #very director) mana4er) partner) secretary) officer or employee of the depository or issuer or
the participant or beneficial owner shall on demand produce before the person ma6in4 the
en2uiry or inspection all information or such records and other documents in his custody havin4 a
bearin4 on the sub7ect matter of such en2uiry or inspection$
19. Po3er o$ (oar to 2i5e ire!tion% in !ertain !a%e%.&0ave as provided in this !ct) if after
ma6in4 or causin4 to be made an en2uiry or inspection) the Board is satisfied that it is
necessary ?
%i' ?in the interest of investors) or orderly development of securities mar6et3 or
%ii' ?to prevent the affairs of any depository or participant bein4 conducted in the manner
detrimental to the interests of investors or securities mar6et)
?????it may issue such directions)?
%a' ?to any depository or participant or any person associated with the securities mar6et3 or
%b' ?to any issuer)
as may be appropriate in the interest of investors or the securities mar6et$
C!P"#R ?
PENALTY
#8. O$$en!e%.&8hoever contravenes or attempts to contravene or abets the contravention of the
provisions of this !ct or any re4ulations or bye-laws made thereunder shall be punishable with
imprisonment for a term which may e-tend to five years) or with fine) or with both$
#1. O$$en!e% +- !o".anie%.&%&' 8here an offence under this !ct has been committed by a
company) every person who at the time the offence was committed was in char4e of) and was
responsible to) the company for the conduct of the business of the company) as well as the
company) shall be deemed to be 4uilty of the offence and shall be liable to be proceeded a4ainst
and punished accordin4ly:
Provided that nothin4 contained in this sub-section shall render any such person liable to any
punishment provided in this !ct) if he proves that the offence was committed without his
6nowled4e or that he had e-ercised all due dili4ence to prevent the commission of such offence$
%,' :otwithstandin4 anythin4 contained in sub-section %&') where an offence under this !ct has
been committed by a company and it is proved that the offence has been committed with the
consent or connivance of) or is attributable to any ne4lect on the part of) any director) mana4er)
secretary or other officer of the company) such director) mana4er) secretary or other officer shall
also be deemed to be 4uilty of the offence and shall be liable to be proceeded a4ainst and
punished accordin4ly$
Explanation.?For the purposes of this section)?
%a' ????????company? means any body corporate and includes a firm or other association
of individuals3 and
%b' ????????director?)? in relation to a firm) means a partner in the firm$
C!P"#R ?I
MISCELLANEO)S
##. Co2ni=an!e o$ o$$en!e% +- !o,rt%$?%&' :o court shall ta6e co4ni@ance of any offence
punishable under this !ct or any re4ulations or bye-laws made thereunder) save on a complaint
made by the Board$
%,' :o court inferior to that of a Aetropolitan Aa4istrate or a Budicial Aa4istrate of the first class
shall try any offence punishable under this !ct$
#*. A..eal%$?%&' !ny person a44rieved by an order of the Board made under this !ct) or the
re4ulations made thereunder may prefer an appeal to the Central Covernment within such time
as may be prescribed$
%,' :o appeal shall be admitted if it is preferred after the e-piry of the period prescribed therefor:
Provided that an appeal may be admitted after the e-piry of the period prescribed therefor if the
appellant satisfies the Central Covernment that he had sufficient cause for not preferrin4 the
appeal within the prescribed period$
%.' #very appeal made under this section shall be made in such form and shall be accompanied
by a copy of the order appealed a4ainst and by such fees as may be prescribed$
%9' "he procedure for disposin4 of an appeal shall be such as may be prescribed:
Provided that before disposin4 of an appeal) the appellant shall be 4iven a reasonable
opportunity of bein4 heard$
#1. Po3er o$ Central /o5ern"ent to "a9e r,le%$?%&' "he Central Covernment may) by
notification in the Dfficial Ca@ette) ma6e rules for carryin4 out the provisions of this !ct$
%,' In particular) and without pre7udice to the 4enerality of the fore4oin4 power) such rules may
provide for all or any of the followin4 matters) namely:?
%a' the time within which an appeal may be preferred under sub-section %&' of 0ection ,.3
%b' the form in which an appeal may be preferred) under sub-section %.' of 0ection ,. and the
fees payable in respect of such appeal3
%c' the procedure for disposin4 of an appeal under sub-section %9' of 0ection ,.$
#4. Po3er o$ (oar to "a9e re2,lation%$?%&' 8ithout pre7udice to the provisions contained in
0ection ./ of the 0ecurities and #-chan4e Board of India !ct) &**, %&1 of &**,') the Board may)
by notification in the Dfficial Ca@ette) ma6e re4ulations consistent with the provisions of this !ct
and the rules made thereunder to carry out the purposes of this !ct$
%,' In particular) and without pre7udice to the 4enerality of the fore4oin4 power) such re4ulations
may provide for?
%a' the form in which record is to be maintained under clause %i' of sub-section %&' of 0ection ,3
%b' the form in which the certificate of commencement of business shall be issued under sub-
section %,' of 0ection .3
%c' the manner in which the certificate of security shall be surrendered under sub-section %&' of
0ection +3
%d' the manner of creatin4 a pled4e or hypothecation in respect of security owned by a beneficial
owner under sub-section %&' of 0ection &,3
%e' the conditions and the fees payable with respect to the issue of certificate of securities under
sub-section %.' of 0ection &93
%f' ?the ri4hts and obli4ations of the depositories) participants and the issuers under sub-
section %&' of 0ection &=3
%4' the eli4ibility criteria for admission of securities in the depository under sub-section %,' of
0ection &=$
#6. Po3er o$ e.o%itorie% to "a9e +-e>la3%$?%&' ! depository shall) with the previous approval
of the Board) ma6e bye-laws consistent with the provisions of this !ct and the re4ulations$
%,' In particular) and without pre7udice to the 4enerality of the fore4oin4 power) such bye-laws
shall provide for?
%a' the eli4ibility criteria for admission and removal of securities in the depository3
%b' the conditions sub7ect to which the securities shall be dealt with3
%c' the eli4ibility criteria for admission of any person as a participant3
%d' the manner and procedure for dematerialisation of securities3
%e' the procedure for transactions within the depository3
%f' ?the manner in which securities shall be dealt with or withdrawn from a depository3
%4' the procedure for ensurin4 safe4uards to protect the interests of participants and beneficial
owners3
%h' the conditions of admission into and withdrawal from a participant by a beneficial owner3
%i' ?the procedure for conveyin4 information to the participants and beneficial owners on
dividend declaration) shareholder meetin4s and other matters of interest to the beneficial owners3
%7' ?the manner of distribution of dividends) interest and monetary benefits received from the
company amon4 beneficial owners3
%6' ?the manner of creatin4 pled4e or hypothecation in respect of securities held with a
depository3
%l' ?inter se ri4hts and obli4ations amon4 the depository) issuer) participants and beneficial
owners3
%m' the manner and the periodicity of furnishin4 information to the Board) issuer and other
persons3
%n' the procedure for resolvin4 disputes involvin4 depository) issuer) company or a beneficial
owner3
%o' the procedure for proceedin4 a4ainst the participant committin4 breach of the re4ulations and
provisions for suspension and e-pulsion of participants from the depository and cancellation of
a4reements entered with the depository3
%p' the internal control standards includin4 procedure for auditin4) reviewin4 and monitorin4$
%.' 8here the Board considers it e-pedient so to do) it may) by order in writin4) direct a depository
to ma6e any bye-laws or to amend or revo6e any bye-laws already made within such period as it
may specify in this behalf$
%9' If the depository fails or ne4lects to comply with such order within the specified period) the
Board may ma6e the bye-laws or amend or revo6e the bye-laws made either in the form specified
in the order or with such modifications thereof as the Board thin6s fit$
#6. R,le% an re2,lation% to +e lai +e$ore Parlia"ent$?#very rule and every re4ulation made
under this !ct shall be laid) as soon as may be after it is made) before each ouse of Parliament)
while it is in session) for a total period of thirty days which may be comprised in one session or in
two or more successive sessions) and if) before the e-piry of the session immediately followin4
the session or the successive sessions aforesaid) both ouses a4ree in ma6in4 any modification
in the rule or re4ulation or both ouses a4ree that the rule or re4ulation should not be made) the
rule or re4ulation shall thereafter have effect) only in such modified form or be of no effect) as the
case may be3 so) however) that any such modification or annulment shall be without pre7udice to
the validity of anythin4 previously done under that rule or re4ulation$
#7. A..li!ation o$ other la3% not +arre.&"he provisions of this !ct shall be in addition to) and
not in dero4ation of) any other law for the time bein4 in force relatin4 to the holdin4 and transfer of
securities$
#9. Re"o5al o$ i$$i!,ltie%$?%&' If any difficulty arises in 4ivin4 effect to the provisions of this !ct)
the Central Covernment may) by order published in the Dfficial Ca@ette) ma6e such provisions not
inconsistent with the provisions of this !ct as appear to it to be necessary or e-pedient for
removin4 the difficulty:
Provided that no order shall be made under this section after the e-piry of a period of two years
from the commencement of this !ct$
%,' #very order made under this section shall be laid) as soon as may be after it is made) before
each ouse of Parliament$
*8. A"en"ent% to !ertain ena!t"ent%$?"he enactments specified in the 0chedule to this !ct
shall be amended in the manner provided therein$
*1. Re.eal an %a5in2$?%&' "he (epositories %"hird' Drdinance) &**+ %Drd$ ,< of &**+' is
hereby repealed$
%,' :otwithstandin4 such appeal) anythin4 done or any action ta6en under the said Drdinance
shall be deemed to have been done or ta6en under the correspondin4 provisions of this !ct$
"# 0C#(E5#
%See 0ection ./'
!A#:(A#:"0 "D C#R"!I: #:!C"A#:"0
P!R" I
!A#:(A#:" "D "# I:(I!: 0"!AP !C") &<** %, DF &<**'
Amendment
!fter 0ection <) the followin4 section shall be inserted) namely:?
?<!$ Securities not liable to stamp duty.?:otwithstandin4 anythin4 contained in this !ct)
%a' ?an issuer) by the issue of securities to one or more depositories shall) in respect to such
issue) be char4eable with duty on the total amount of security issued by it and such securities
need not be stamped3
%b' where an issuer issues certificate of security under sub-section %.' of 0ection &9 of the
(epositories !ct) &**+) on such certificate duty shall be payable as is payable on the issue of
duplicate certificate under this !ct3
%c' ???????transfer of re4istered ownership of shares from a person to a depository or from
a depository to a beneficial owner shall not be liable to any stamp duty3
%d' the transfer of beneficial ownership of shares) such shares bein4 shares of a company dealt
with by a depository shall not be liable to duty under article +, of 0chedule I of this !ct$
Explanation$?For the purposes of this section) the e-pressions ?beneficial owner?) ?depository?)
and ?issuer? shall have the meanin4s respectively assi4ned to them in clauses %a') %e' and %f' of
sub-section %l' of 0ection , of the (epositories !ct) &**+$?
P!R" II
!A#:(A#:"0 "D "# CDAP!:I#0 !C") &*1+ %& of &*1+'
Amendments
&$ In 0ection ,) after clause %91!') the followin4 clause shall be inserted) namely:?
??????%91B' ?0ecurities and #-chan4e Board of India? means the 0ecurities and
#-chan4e Board of India established under 0ection . of the 0ecurities and #-chan4e Board of
India !ct) &**,$?
,$ ?????????Interpretation of certain words and e-pressions$?!fter 0ection ,) the followin4
section shall be inserted) namely:?
??,!$ 8ords and e-pressions used and not defined in this !ct but defined in the (epositories
!ct) &**+) shall have the same meanin4s respectively assi4ned to them in that !ct$?$
.$ In 0ection 9&) after sub-section %,') the followin4 sub-section shall be inserted) namely:?
??????%.' #very person holdin4 e2uity share capital of company and whose name is
entered as beneficial owner in the records of the depository shall be deemed to be a member of
the concerned company$?
9$ In 0ection 9*) in sub-section %1') after clause %b') the followin4 clause shall be inserted) namely
:?
??????%c' from holdin4 investments in the name of a depository when such investments
are in the form of securities held by the company as a beneficial owner$?
1$ In 0ection 1&) the followin4 proviso shall be inserted) namely:?
??????Provided that where the securities are held in a depository) the records of the
beneficial ownership may be served by such depository on the company by means of electronic
mode or by delivery of floppies or discs$?
+$ ?????????0ection <. shall be omitted$
=$ In 0ection &/<) after sub-section %,') the followin4 sub-section shall be inserted) namely :?
???????%.' :othin4 contained in this section shall apply to transfer of security effected by
the transferor and the transferee both of whom are entered as beneficial owners in the records of
a depository$?
<$ In 0ection &&&) after sub-section %&.') the followin4 sub-section shall be inserted) namely:?
??????%&9' In this section) ?company? means a private company and includes a private
company which had become a public company by virtue of 0ection 9.! of this !ct$?$
*$ ?!fter 0ection &&&) the followin4 section shall be inserted) namely:?
111A. Re!ti$i!ation o$ Re2i%ter on tran%$er$?%&' In this section) unless the conte-t otherwise
re2uires) ?company? means a company other than a company referred to in sub-section %&9' of
0ection &&& of this !ct$
%,' ?????????0ub7ect to the provisions of this section) the shares or debentures and any
interest therein of a company shall be freely transferable$
%.' ?????????"he Company 5aw Board may) on an application made by a depository)
company) participant or investor or the 0ecurities and #-chan4e Board of India within two months
from the date of transfer of any shares or debentures held by a depository or from the date on
which the instrument of transfer or the intimation of transmission was delivered to the company)
as the case may be) after such en2uiry as it thin6s fit) direct any company or depository to rectify
re4ister or records if the transfer of the shares or debentures is in contravention of any of the
provisions of the 0ecurities and #-chan4e Board of India !ct) &**, %&1 of &**,') or re4ulations
made thereunder or the 0ic6 Industrial Companies %0pecial Provisions' !ct) &*<1 %& of &*<+'$
%9' ?????????"he Company 5aw Board) while actin4 under sub-section %.') may at its
discretion ma6e such interim order as to suspend the votin4 ri4hts before ma6in4 or completin4
such en2uiry$
%1' ?????????"he provisions of this section shall not restrict the ri4ht of a holder of shares
or debentures) or transfer such shares or debentures and any person ac2uirin4 such shares or
debentures shall be entitled to votin4 ri4hts unless the votin4 ri4hts have been suspended by an
order of the Company 5aw Board$
%+' ?????????:otwithstandin4 anythin4 contained in this section) any further transfer) durin4
the pendency of the application with the Company 5aw Board) of shares or debentures shall
entitle the transferee to votin4 ri4hts unless the votin4 ri4hts in respect of such transferee have
also been suspended$
%=' ?????????"he provisions of sub-sections %1') %=') %*') %&/' and %&,' of 0ection &&& shall)
so far as may be) apply to the proceedin4s before the Company 5aw Board under this section as
they apply to the proceedin4s under that section$?
&/$ ?????????In 0ection &&.) after sub-section %.') the followin4 sub-section shall be
inserted namely:?
?%9' :otwithstandin4 anythin4 contained in sub-section %&') where the securities are dealt in a
depository) the company shall intimate the details of allotment of securities to depository
immediately on allotment of such securities$?
&&$ ?????????In 0ection &1/) in sub-section %&') in clause %b') the words ?distin4uishin4
each share by its number? shall be omitted$
&,$ ?????????In 0ection &1,) in sub-section %&') in clause %b') the words ?distin4uishin4
each debenture by its number? shall be omitted$
&.$ ?????????!fter 0ection &1,) the followin4 section shall be inserted) namely:?
&&&&&&&&14#A. Re2i%ter an inex o$ +ene$i!ial o3ner% to +e o$ e+ent,re
holer$?"he re4ister and inde- of beneficial owners maintained by a depository under 0ection &&
of the (epositories !ct) &**+) shall be deemed to be an inde- of members and re4ister and inde-
of debenture holders) as the case may be) for the purposes of this !ct$?
&9$ ?????????In 0chedule II) in Part II) in clause C) after sub-section *) the followin4 sub-
clause shall be inserted) namely:?
??????*!$ "he details of opinion to subscribe for securities to be dealt with in a
depository$?
P!R" III
!A#:(A#:"0 "D "# 0#CERI"I#0 CD:"R!C"0 %R#CE5!"ID:'
!C") &*1+ %9, of &*1+'
Amendments
&$ In 0ection ,) for clause %i') the followin4 clause shall be substituted) namely:?
?%i'? ?spot delivery contract? means a contract which provides for)?
%a' ?actual delivery of securities and the payment of a price therefor either on the same day
as the date of the contract or on the ne-t day) the actual periods ta6en for the dispatch of the
securities or the remittance of money therefor throu4h the post bein4 e-cluded from the
computation of the period aforesaid if the parties to the contract do not reside in the same town or
locality3
%b' ?transfer of the securities by the depository from the account of a beneficial owner to the
account of another beneficial owner when such securities are dealt with by a depository$?$
,$ 0ection ,,! shall be omitted$
P!R" I?
!A#:(A#:" "D "# I:CDA#-"!F !C") &*+& %9. DF &*+&'
Amendment
In 0ection 91) after sub-section %,') the followin4 sub-section shall be inserted, namely:?
??????%,!' 8here any person has had at any time durin4 the previous year any
beneficial interest in any securities) then) any profits or 4ains arisin4 from transfer made by the
depository or participant of such beneficial interest in respect of securities shall be char4eable to
income-ta- as the income of the beneficial owner of the previous year in which such transfer too6
place and shall not be re4arded as income of the depository who is deemed to be the re4istered
owner of securities by virtue of sub-section %&' of 0ection &/ of the (epositories !ct) &**+) and
for the purposes of?
%i' ?0ection 9<3 and
%ii' ?proviso to clause %9,!' of 0ection ,)
?????the cost of ac2uisition and the period of holdin4 of any securities shall be
determined on the basis of the first-in-first out method$
Explanation$?For the purposes of this sub-section) the e-pressions ?beneficial owner?) ?
depository? and ?security? shall have the meanin4s respectively assi4ned to them in clauses %a')
%e' and %l' of sub-section %&' of 0ection , of the (epositories !ct) &**+$?$
P!R" ?
!A#:(A#:" "D "# B#:!AI "R!:0!C"ID:0 %PRDIBI"ID:'
!C") &*<< %91 DF &*<<'
!mendment
In 0ection .) for sub-section %,') the followin4 sub-section shall be substituted) namely:?
?%,' :othin4 in sub-section %&' shall apply to?
%a' the purchase of property by any person in the name of his wife or unmarried dau4hter and it
shall be presumed) unless the contrary is proved) that the said property had been purchased for
the benefit of the wife or the unmarried dau4hter3
%b' the securities held by a?
%i' ?depository as a re4istered owner under sub-section %&' of 0ection &/ of the (epositories
!ct) &**+3
%ii' ?participant as an a4ent of a depository$
Explanation$?"he e-pressions ?depository? and ?participant? shall have the meanin4s
respectively assi4ned to them in clauses %e' and %4' of sub-section %&' of 0ection , of the
(epositories !ct) &**+$?
P!R" ?I
!A#:(A#:"0 "D "# 0#CERI"I#0 !:( #FC!:C# BD!R(
DF I:(I! !C") &**, %&1 DF &**,'
Amendments
&$ In 0ection ,) in sub-section %,') for the words) brac6ets and fi4ures ?the 0ecurities Contracts
%Re4ulation' !ct) &*1+ %9, of &*1+'?) the words) brac6ets and fi4ures ?the 0ecurities Contracts
%Re4ulation' !ct) &*1+ %9, of &*1+') or the (epositories !ct) &**+? shall be substituted$
,$ In 0ection &&) in sub-section %,') in clause %ba') for the words ?depositories) custodians?) the
words ?depositories) participants) custodians? shall be substituted$
.$ In 0ection &,) in sub-section %&!') for the words ?depository) custodian?) at both the places
where they occur) the words ?depository) participant) custodian? shall be substituted$
9$ In 0ection &+) in sub-section %&') for the words ?this !ct?) the words and fi4ures ?this !ct or the
(epositories !ct) &**+? shall be substituted
i