Section 35: Central depository to have power to make regulations

35. Central depository to have power to make regulations.—(1) Subject to prior approval of the regulations by the Authority, a central depository shall have the power to make regulations from time to time to carry out its functions in accordance with the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely :— (a) manner of opening and maintaining accounts and sub­accounts with the central depository ; (b) criteria for recognition of persons as eligible pledgees ; (c) qualifications of account­holders for the purposes of becoming participants ; (d) manner and procedure of effecting transfers of book­entry securities; (e) manner and timing of entering book­entry securities in accounts and sub­accounts ; (f) types of accounts and sub­accounts which may be established with the central depository for different classes of persons; (g) manner of withdrawing securities from the central depository system of the central depository ; (h) criteria for determining close of business hours of the central depository on each day ; (i) manner of making entries in accounts and sub­accounts maintained with the central depository ;. (j) manner of provision of information to a central depository by a participant under sub­ section (2) of section 9 ; (k) manner and timing of provision of information by the central depository to issuers under sub­section (3) of section 9 ; (l) details of information to be given by the central depository to issuers under sub­section (5) of section 9 ; (m) procedure for consolidation and sub­division of book­entry securities representing securities which have been consolidated or sub­divided by an issuer (n) new issues or offer for sale of securities ; (o) manner of conversion of debt­based book­entry securities into equity­based book­entry securities ; (p) borrowing and lending of book­entry securities ; (q) regulating access to the computer system of the central depository and the limit of such access ; (r) direct statements sent by a central depository to sub­account holders ; and (s) any other matter for which a regulation is required to be or may be made to carry out the purposes of this Act. (3) All regulations made under this section shall be published in the official gazette and shall take effect upon such publication. (4) Where the Authority considers it expedient so to do, it may, by order in writing, direct a central depository to make any regulation, or to amend or rescind any regulation already made, within such period as it may specify in this behalf. (5) If a central depository fails or neglects to comply with any direction under sub­section (4) within the specified period, the Authority may make or amend, with or without modifications, or rescind, any regulation directed to be made, amended or rescinded; and a regulation so made, amended, rescinded by the Authority shall be deemed to have been made, amended or rescinded by the central depository in accordance with the provisions of this section and shall have effect accordingly.

Effective date: 1997-01-01

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