section 12
Pledge or hypothecation of securities held in a depository.
The Depositories Act, 1996Corporate199660 sections5 chapters
Chapter III RIGHTS AND OBLIGATIONS OF DEPOSITORIES, PARTICIPANTS, ISSUERS AND BENEFICIAL OWNERS
Statutory text
- (1) Subject to such regulations and bye-laws, as may be made in this behalf, a beneficial owner may with the previous approval of the depository create a pledge or hypothecation in respect of a security owned by him through a depository.
- (2) Every beneficial owner shall give intimation of such pledge or hypothecation to the depository and such depository shall thereupon make entries in its records accordingly.
- (3) Any entry in the records of a depository under sub-section (2) shall be evidence of a pledge or hypothecation.
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