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SEBI (DEPOSITORIES AND PARTICIPANTS) REGULATIONS, 1996

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(a) The registration of the depository, its participant and the custodian is mandatory with SEBI;

(b) Requisite fees must also be paid to SEBI in respect of the registration;

(c) The proper agreement must be entered into by all the parties;

(d) Drafts of these agreements are to be included in the bye – laws and to be approved by SEBI. 

Rights and Obligations of Depositories and its Constituents

Every depository is required to maintain following records & documents which are as follows:-

(i) Records of securities dematerialized; (ii) The names of the transferor, transferee, and the dates of the transfer of securities;
(iii) A register and index of beneficial owner;

(iv) The details of holding of securities of the beneficial owner at the end of each day;

(v) Records of approvals, notices, entries; (vi) Details of participants;

(vii) Details of securities declared to be eligible for dematerialization. 

The Participants have to maintain the following Documents for a Period of 5 years:

(i) Records of all transactions entered into;

(ii) Details of the securities dematerialized;

(iii) Records of instructions received from beneficial owners;

(iv) Records of approvals, notices, entries.

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