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CS Executive · Capital Market and Securities Laws · Laws Governing Depositories and Depository Participants

Under the Depositories Act, 1996, how are the rights and obligations of depositories, participants and issuers whose securities are dealt with by a depository specified?

They are specified by the regulations, subject to the provisions of the Act. The Board makes such regulations under its regulation-making power, which expressly covers the rights and obligations of depositories, participants and issuers dealing with securities in a depository.

  1. ABy the regulations, subject to the provisions of the ActCorrect
  2. BBy the articles of association of each issuer
  3. CBy private agreements between each issuer and investor, with no regulation
  4. DBy the stock exchange listing agreement alone

Explanation

Section 17(1) states that, subject to the Act, the rights and obligations of depositories, participants and issuers are specified by the regulations. The Board makes these regulations under Section 25(2)(f). The other options name sources the Act does not provide.

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