Section 14: Regulations for issue or offer for sale of securities

14. Regulations for issue or offer for sale of securities.—(1) A central depository may make regulations which permit any issuer to enter into an arrangement with the central depository whereunder the issuer may register in the name of the central depository all the securities of one class after making allocation of such securities to subscribers of the securities. (2) Where any issuer enters into an arrangement referred to in sub­section (1) with a central depository and registers the securities in the name of the central depository, the central depository shall ensure that every subscriber of the securities or any account­holder designated by such subscriber is credited with book­entry securities representing his entitlement to such securities. (3) A central depository may make regulations which permit any person intending to make an offer for sale of securities to the public to enter into an arrangement with the central depository where under the securities which are to be offered for sale by that person may be transferred in the name of the central depository after the acceptance of offer from persons who apply to purchase such securities. (4) Where any person intending to make an offer for sale of securities to the public enters into any arrangement referred to in sub­section (3) with a central depository and transfers the securities in its name, the central depository shall ensure that every purchaser of the securities or any account­ holder designated by such purchaser is credited with book­entry securities representing his entitlement to such securities.

Effective date: 1997-01-01

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