CorporateAct No. 22 of 1996In Force

The Depositories Act, 1996

Provides for the establishment of depositories for securities in electronic (dematerialised) form. The Act enabled the creation of NSDL and CDSL, transforming India's capital markets by eliminating physical share certificates. It governs the rights of beneficial owners, obligations of issuers, and the regulatory framework for depository participants.

Sections

Schedules

Ministry

Ministry of Finance

Key Provisions

→Registration and regulation of depositories by SEBI

→Dematerialisation of securities — electronic holding

→Rights of beneficial owners — voting, dividend, transfer

→Obligations of issuers to depositories

→Depository participants: eligibility, registration, and duties

→Pledge and hypothecation of dematerialised securities

→Civil and criminal liability for depository and participants

→Fungibility of securities held in dematerialised form

Related Practice Areas

regulatory-compliance capital-markets

dematNSDLCDSLdepositorydematerialisationbeneficial owner

Section-by-Section Reference

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Indian government legislation is in the public domain under S.52(1)(q) of the Copyright Act, 1957. This reference is for educational purposes. Laws are amended frequently — verify the current text on the e-Gazette of India before relying on it for legal proceedings.