Vidhi Codex

The Sikkim Protection of Interests of Depositors (in Financial Establishments) Act, 2009

The Sikkim Protection of Interests of Depositors (in Financial Establishments) Act, 2009

General200929 sections

This Act regulates financial establishments in Sikkim that accept deposits from the public. It applies to individuals, firms, and companies registered under the Companies Act or the Registration of Companies Act Sikkim, excluding government-owned corporations and banks. The law requires these entities to obtain trade licenses, register with a designated Competent Authority, and secure prior written permission before accepting deposits. To protect investors, the establishment must provide security, such as immovable property or fixed deposits, covering a significant portion of the total deposits. This framework is essential for maintaining financial stability and ensuring that depositors' interests are safeguarded against fraud or mismanagement.

Start reading →Read full ActSections
  1. 1. Short title and commencement
  2. 2. Definitions
  3. 3. Competent Authority
  4. 4. Trade license and office
  5. 5. Registration with Competent Authority
  6. 6. Permission for accepting deposits
  7. 7. Security to be furnished
  8. 8. Bar on receiving certain deposits
  9. 9. Application for deposits
  10. 10. Receipts to be issued for deposits
  11. 11. Record of money received from depositors
  12. 12. Security deposits from employees
  13. 13. Intimations regarding key functionaries to be furnished.
  14. 14. Half yearly return of deposits to be furnished.
  15. 15. Closure or shifting of offices to be Publicized.
  16. 16. Return of deposits
  17. 17. Default of return deposits.
  18. 18. Attachment of properties of default of return of deposits.
  19. 19. Application to the District and Session Court.
  20. 20. Punishment for offences.
  21. 21. Compunding of offence.
  22. 22. Power to try offences
  23. 23. Power to Court for attachment, sale, realization, and distribution.
  24. 24. Attachment of property of maJafide transferees.
  25. 25. Security in lieu of attachment.
  26. 26. Administration of property attached.
  27. 27. Appeal.
  28. 28. Act to override other laws.
  29. 29. Power to make rules.

PDF: pending for this language.