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

Under the Depositories Act, 1996, which of the following matters is the depository specifically required to provide for in its bye-laws?

The bye-laws must provide the procedure for resolving disputes involving the depository, issuer, company or a beneficial owner. Dividend rates, issuer directors' qualifications and issue pricing are issuer matters and are not listed as required depository bye-law subjects.

  1. AThe procedure for resolving disputes involving the depository, issuer, company or a beneficial ownerCorrect
  2. BThe rate of dividend to be declared by each issuer
  3. CThe qualifications of directors of issuer companies
  4. DThe price at which securities are to be issued by companies

Explanation

Section 26(2)(n) lists the procedure for resolving disputes involving the depository, issuer, company or beneficial owner as a bye-law matter. The other options concern issuer decisions, which are not matters for depository bye-laws.

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