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CMA Final · Corporate and Economic Laws · SEBI Laws and Regulations

Which of the following is a matter on which a depository must provide in its bye-laws under Section 26(2) of the Depositories Act, 1996?

Section 26(2) of the Depositories Act requires bye-laws to cover, among other things, the manner and procedure for dematerialisation of securities. Tax rates, issuer listing capital and issuer penalties for allotment delays are not listed matters for depository bye-laws.

  1. AThe rate of securities transaction tax payable on dematerialised trades
  2. BThe manner and procedure for dematerialisation of securitiesCorrect
  3. CThe minimum paid-up capital of issuer companies listing on exchanges
  4. DThe penalty payable by an issuer for delayed allotment of securities

Explanation

Section 26(2)(d) lists the manner and procedure for dematerialisation of securities among the matters bye-laws must cover. Tax rates, issuer capital and issuer penalties are not in that list.

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