Section 26: Settlement of securities transactions using the central depository system

26. Settlement of securities transactions using the central depository system.—(1) Subject to the provisions of this Act, no transfer of book­entry securities shall be effected on the central depository system unless at least one party to the transaction in respect of which the transfer of book­ entry securities is sought to be effected is a member of a stock exchange. (2) Notwithstanding the provisions of sub­section (1), a central depository shall make regulations prescribing transactions, other than the transactions referred to in that sub­section, in respect of which transfers of book­entry securities may be effected on the central depository system : Provided that a central depository may, before making or allowing the entry to be made, require the production of such documentary evidence as may be prescribed in the regulations.

Effective date: 1997-01-01

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