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BYE LAWS OF DEPOSITORY

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Depository is required to frame its bye laws with the prior approval of SEBI, consistent with the provisions of the act and the regulations made by SEBI there under. SEBI has the power to direct the depository to amend or revoke any bye laws already made, wherever it considers expedient to do so. If the depository fails or neglects to comply with the directions of SEBI, SEBI may make the bye laws or amend or revoke the bye laws on its own. 

Contents of the Bye Laws:

■ Eligibility Criteria for admission and removal of securities in the depository.

■ Conditions subject to which securities shall be dealt with.

■ Eligibility criteria for admission of any person as a participant.

■ Manner and procedure for dematerialization of securities.

■ Procedure for transactions within the depository.

■ The manner in which securities are to be dealt with or withdrawn from a depository.

■ Procedure for ensuring safeguards to protect the interest of participants and beneficial owners.

■ Conditions of admission into and withdrawal from a participant by a beneficial owner

■ Internal Control Standards including procedure for auditing, reviewing and monitoring.

■ Procedure for resolving disputes involving depository, issuer company or a beneficial owner.

■ Manner and periodicity of furnishing information to SEBI, Issuer and other persons.

■ Manner of creating pledge or hypothecation in respect of securities with a depository.

■ Manner of distribution of dividends, interest and monetary benefits received from the company among beneficial owners.

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