CS Executive · Capital Market and Securities Laws · Laws Governing Depositories and Depository Participants
Under the Depositories Act, 1996, what must every depository furnish to the issuer, and what must every issuer make available to the depository?
The depository must give the issuer information about transfers of securities in the names of beneficial owners, at intervals and in the manner specified by bye-laws. The issuer must make available to the depository copies of relevant records in respect of securities the depository holds.
- ADepository: its audited accounts; issuer: its board minutes
- BDepository: details of all beneficial owners' bank balances; issuer: its dividend plans
- CDepository: information about transfer of securities in beneficial owners' names, at intervals and in manner set by bye-laws; issuer: copies of relevant records of securities held by the depositoryCorrect
- DDepository: nothing, as only issuers have duties; issuer: share certificates of every holder
Explanation
Section 13(1) requires the depository to give the issuer information about transfers of securities in the names of beneficial owners at intervals and in the manner specified by the bye-laws. Section 13(2) requires the issuer to make available to the depository copies of relevant records for securities held by it. The other options invent duties not in the section.
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