Attachment Schedules

Schedules
SECURITIES AND EXCHANGE BOARD OF INDIA (DEPOSITORIES AND

PARTICIPANTS) REGULATIONS, 2018
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FIRST SCHEDULE
FORMS
FORM A
Securities and Exchange Board of India (Depositories and
Participants) Regulations, 2018
[See regulation 3]
Application for grant of certificate of registration as depository
Securities and Exchange Board of India, C4-A, ‘G’ Block, Bandra-Kurla Complex,
Bandra (East) Mumbai 400051 - India,
INSTRUCTIONS
i. This form is meant for use by each person acting as the applicant of a depository.
ii. The applicant should complete this form, and submit it, along with all supporting
documents to the Board at its head office at Mumbai.
iii. This application form should be filled in accordance with the regulations.
iv. Application for grant of certificate of registration as depository, will be considered
provided it is complete in all respects.
v. All answers must be typed.
vi. Information which needs to be supplied in more detail may be given on separate
sheets which should be attached to the application form.
vii. The application must be signed and all signatures must be original.
viii. The application must be accompanied by an application fee as specified in the
Second Schedule to these regulations and by the draft bye-laws.
ix. Every page of the form and every additional sheet must be initialed by the
authorised signatory of the applicant.
x. All copies of documents should be attested as true by an authorised notary.
Items 1-6 pertain to an applicant

1. Name, address of the registered office, address for correspondence, telephone number(s),
fax number(s), telex number(s) and the name of the contact person of the applicant.
2. Please indicate the name of the depository which is proposed to be established by the
applicant.
3. Please indicate the names of other depositories, if any, which have been sponsored by the
applicant, or in which the applicant is acting as participant.
4. Please indicate the category to which the applicant belongs as per regulation 6 read with
subregulation (1) and (2) of regulation 21.
5. Please provide the following details of each applicant:

(a) Date of incorporation or establishment, and the statute, if any, under which
established (enclose certificate of incorporation, memorandum and articles of association or
statutory provisions, if any).
(b) Objects of the applicant.
(c) Details of the nature of activities carried on by the applicant.
(d) Details of affiliates and subsidiaries, and activities carried on by them.
(e) Details of registration with the Securities and Exchange Board of India, the
Reserve Bank of India or with any foreign regulatory authority of the applicant, its affiliates
and its subsidiaries (enclose documents supporting such registration).
(f) Net worth of the applicant (enclose a copy of the latest audited financial
statements).
(g) Percentage and amount of the paid up capital of the proposed depository which the
applicant is to hold.
6. Declaration statement (to be given as below) by each applicant.
We hereby agree and declare that the information supplied in the application, including the
attachment sheets, is complete and true.
And we further agree that we will notify Securities and Exchange Board of India immediately
any change in the information provided in the application.
We further agree that we shall comply with, and be bound by the Securities and Exchange
Board of India Act, 1992, and Securities and Exchange Board of India (Depositories and
Participants) Regulations, 2018, and such other guidelines/instructions which may be
announced by the Securities and Exchange Board of India from time to time.
We further agree that as a condition of registration, we shall abide by such operational
instructions/directives as may be issued by the Securities and Exchange Board of India from
time to time.
For and on behalf of.............................................
(Name of the applicant)
Authorised signatory.................. ..........................
(Name) (Signature)
Date: Place:
Items 7-14 pertain to the depository, and should be filled in accordingly
7. Name, address of the registered office, address for correspondence, telephone number(s),
fax number(s), telex number(s) and the name of the contact person of the applicant.
8. Date of incorporation of the depository (enclose certificate of incorporation and
memorandum and articles of association)
(a) Objects (main and ancillary) of the depository.
(b) Authorised, issued, subscribed and paid-up capital of the depository.
(c) Proposed net worth of the depository.
(d) Details of proposed shareholding of each applicant.
9. The following details may be given for each director of the depository, and for its principal
officer.
(a) Name, age, nationality.
(b) Details of educational and other qualifications.
(c) Details of experience.
(d) Details of other directorships held.
(e) Details of any litigation connected with the securities market which has an adverse
bearing on the business of the depository, involving the director or principal officer, and
details of any conviction of the director or principal officer for a crime involving moral
turpitude or of any economic offence for which the director or principal officer has been
found guilty.
10. Please indicate the details of staff and organisation structure that is proposed to be
set- up prior to commencement of business.
11. Details of infrastructure such as premises and automatic data processing, storage
and back up systems and procedures, communication systems that are proposed to be set-up
prior to commencement of business.
12. Internal evaluation and monitoring systems that are proposed to be set-up prior to
the commencement of business.
13. Arrangements for indemnification of beneficial owners that are proposed to be put
in place, including details of insurance cover proposed to be taken prior to the
commencement of business.
14. Declaration statement (to be given as below).
We hereby agree and declare that the information supplied in the application including the
And we further agree that, we will notify Securities and Exchange Board of India immediately
We further agree that we shall comply with, and be bound by the Securities and Exchange Board
of India Act, 1992, and Securities and Exchange Board of India (Depositories and Participants)
Regulations, 2018, and such other guidelines/instructions which may be announced by the
Securities and Exchange Board of India from time to time.
time to time.
For and on behalf
of............................................................................................................................................
Authorised signatory.......................... ...............................
(Name) (Signature)
Date: Place:
FORM B
Securities and Exchange Board of India (Depositories
and Participants) Regulations, 2018
[See regulation 7]
Certificate of registration as depository
I. In exercise of the powers conferred by sub-section (1A) of section 12 of the Securities and
Exchange Board of India Act, 1992 (15 of 1992) read with the regulations made thereunder and
with the Depositories Act, 1996 ( 22 of 1996) the Board hereby grants a certificate of registration
to................................as a Depository subject to the conditions specified in the Act, the
Depositories Act and the regulations made thereunder. II. Registration Number for the
Depository is IN/SD/// Date :
Place : Mumbai
Sd/-
For and on behalf of the
Securities and Exchange Board of India
FORM C
[See regulation 11]

Application for grant of certificate of commencement of business as depository
Bandra (East) Mumbai 400051 – India
INSTRUCTIONS
i. This form is meant for use by a depository granted a certificate of registration by
the Securities and Exchange Board of India.
documents to the Board at its head office at Mumbai.
iv. Application for grant of certificate of commencement of business will be
considered provided it is complete in all respects.
viii. Every page of the form and every additional sheet must be initialled by the
authorised signatory of the applicant.
ix. All copies of documents should be attested as true by an authorised notary.
1. Name and registration number of the applicant.
2. Date of grant of certificate of registration to the applicant.
3. Please indicate whether bye-laws have been approved by the Board.
4. Please indicate the details of staff and organisation structure that has been set-up.
5. Please indicate the background and experience of key personnel.
6. Internal evaluation and monitoring systems including details of background and
experience of personnel involved that have been set-up (enclose copies of risk management
and operations manuals).
7. Please provide the following details of the automatic data processing and
communications systems :
(a) details of hardware, software and communications systems, their capability,
function and location;
(b) details of data storage and back up procedures and sites, their capability, function
and location;
(c) details of disaster recovery systems and procedures.
8. Please indicate whether premises and automatic data processing and
communications systems are owned, leased or rented (enclose copies of title lease or rental
agreements).
9. Please indicate arrangements that have been put in place in order to indemnify
beneficial owners.
10. Please enclose copy of insurance cover that has been taken.
11. Please enclose a copy of the participation agreement to be entered into with
different categories of participants.
12. Please enclose a copy of the agreement to be entered into with the issuer, or with
the issuer and his registrar.
13. Please enclose a copy of the agreement to be entered into between the participant,
as the depository’s agent, and the beneficial owners.
14. Declaration statement (to be given as below) :

And we further agree that, we will notify the Securities and Exchange Board of India
immediately of any change in the information provided in the application.
of India Act, 1992, and the Securities and Exchange Board of India (Depositories and
time to time.
For and on behalf
of............................................................................................................................................
(Name) (Signature)
Date: Place:
FORM D
[See regulation 16]
Certificate of commencement of business as depository
In exercise of the powers conferred by section 3 of the Depositories Act, 1996 ( 22 of 1996) read
with the regulations, the Board hereby grants a certificate of commencement of business
to..............................................................as a depository subject to the conditions specified in
the Act, the Depositories Act and the regulations made thereunder.
Date:
Place : Mumbai
By order
Sd/-

FORM E
Securities and Exchange Board of India (Depositories and
Participants) Regulations, 2018
[See regulation 22(2) and 22(3)]
Application for grant of approval for acquisition of shares of a depository

INSTRUCTIONS
i. This form is meant for use by a person who acquires shares of a depository in terms
of subregulation (2) or sub-regulation (3) of regulation (22).
documents, if any to the Board through the depository concerned.
iii. This application form should be filled in accordance with the regulations. iv.
Application seeking approval will be considered provided it is complete in all respects. v.
All answers must be typed. vi. Information which needs to be supplied in more
detail may be given on separate sheets which should be attached to the application form.
vii. The application must be signed and all signatures must be original. viii. Every page
of the form and every additional sheet must be initialled by the applicant / authorised
signatory of the applicant.
1. Name
2. Address
3. Details of employment/ business, if any
4. SEBI registration number, if any
5. Details of registration with other statutory authorities,
6. Declaration regarding the fulfillment of requirements of regulation 23 of these
Regulations.
7. Details of action taken / penalties imposed on him by any statutory authority in India or
abroad.
8. Details of activities that may, in the opinion of the shareholder, lead to his / its
disqualification.
9. Association with depository participants
10. Cases pending before any Court, Tribunal or any other statutory authority in India
or abroad, if any.
11. Previous approvals from the Board as fit and proper, if any.

12. Declaration statement (to be given as below) by each applicant.
I / we hereby agree and declare that the information supplied in the application, including the
attachment sheets, if any, is complete and true.
And I / we further agree that I / we will notify Securities and Exchange Board of India
immediately any change in the information provided in the application.
I / we further agree that we shall comply with, and be bound by the Securities and Exchange
Board of India Act, 1992, and Securities and Exchange Board of India (Depositories and
For and on behalf of.............................................

Authorised signatory.................. ..........................
(Name) (Signature)
Date: Place:
FORM F
[Regulation 32]
Application for Grant of Certificate of Registration as Participant

INSTRUCTIONS
i. This form is meant for use by an applicant for grant of registration as participant.
ii. The form should be filled in by the applicant and submitted to the depository in
which it is acting as participant, who shall forward it, along with all supporting documents
to the Board at its head office at Mumbai.

iv. Application for grant of registration, as the case may be, will be considered
provided it is complete in all respects.
viii. The application must be accompanied by an application fee as specified in the
Second Schedule to these regulations. ix. Every page of the form and every additional sheet
must be initialed by the authorised signatory of the applicant.
x. All copies of documents should be attested as true by an authorised notary.
1. Name, address of the registered office, address for correspondence, telephone
number(s), fax number(s), telex number(s) of the applicant and the name of the contact
person.
2. Please indicate to which of the categories under sub-regulation (a) of regulation
35, the applicant belongs.
3. (a) Date and place of incorporation or establishment and date of commencement
of business (enclose certificate of incorporation, memorandum and articles of association
or statutory provisions, if any).
(b) Details of the activities carried on by the applicant, in India or overseas.
(c) Details of affiliates and subsidiaries of the applicant operating in India, and
activities carried on by them.
(d) Details of registration with the Securities and Exchange Board of India, the
Reserve Bank of India or with any regulatory authority overseas of the applicant, and
of its affiliates and subsidiaries operating in India.
(e) Date of commencement of business in India and overseas (please enclose copies
of the
Reserve Bank of India’s permission, and if applicable copies of approvals from the
Central Government to carry on activities mentioned above).
(f) Type and number of beneficial owners on whose behalf the applicant proposes to
act as participant (Financial Institutions, Mutual Funds, Foreign Portfolio Investors,
Portfolio Managers, Non-Banking Finance Companies, Stock Brokers, Corporates,
Individuals, or for own account).
4. Please give the name and SEBI registration number of the depository in which the
applicant is to act as participant.
5. Please state whether the applicant, his partner, director or principal officer is
involved in any litigation connected with the securities market which has an adverse
bearing on the business of the applicant; or has at any time been convicted for any moral
turpitude or at any time has been found guilty of any economic offence.
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6. Please also state whether there has been any instance of violation or non-adherence
to the securities laws, code of ethics/conduct, code of business rules, for which the applicant
or its parent or holding company or affiliate may have been subject to economic, or criminal
liability, or suspended from carrying out its operations, or the registration revoked
temporarily.
7. Please indicate the net worth and paid-up capital in rupees crore as per the latest
audited financial statements of the applicant.
8. Please indicate services that the applicant is already providing to beneficial owners
on whose behalf the applicant proposes to act as participant, and services proposed to be
provided to beneficial owners.
9. Please provide the following details regarding staff involved in activities as
participant:
(i) organisation structure;
(ii) experience and background of key personnel.
10. Please provide the following details regarding safekeeping and security systems
and procedures:
(i) risk control and operations manuals;
(ii) give details of independent internal control mechanisms for monitoring evaluation
and review of accounting, and reporting systems and procedures.
11. Please provide the following details regarding automatic data processing systems
and record keeping :
(i) details of hardware, software and communications systems, their capability,
function and location;
(ii) details of data storage and back up procedures and sites, their capability, function
and location;
(iii) details of disaster recovery systems and procedures.
12. Details of insurance cover to be taken up.
13. Please indicate the applicant’s shareholding for each depository in which it has
such shareholding and whether any shareholding is proposed to be acquired in the
depository through which this application is being made.
14. Please enclose a copy of an undertaking from the depository in which the applicant
is to act as participant that:
(a) the applicant is eligible to act as participant in the depository through which this
application is being submitted to the Board, and meets with the eligibility criteria for
participants specified in these regulations and in the depository’s bye-laws;
(b) the applicant has adequate automatic data processing systems, adequate and
competent staff, risk management systems, procedures and manuals, disaster recovery
procedures, secure data storage and off site back up facilities, adequate
communications links and insurance; to enable the applicant to fulfil its obligations as
participants to the satisfaction of the depository; and
(c) the agreement to be entered into between the participant and beneficial owners has
been submitted to the depository is in accordance with the depository’s bye-laws.
15. Declaration statement (to be given as below).
And we further agree that, we will notify Securities and Exchange Board of India immediately
of India Act, 1992 and the Securities and Exchange Board of India (Depositories and
time to time.
For and on behalf
of............................................................................................................................................
(Name) (Signature)
Date: Place:
FORM G
[Regulation 36]
Certificate of Registration as Participant
I. In exercise of the powers conferred by sub-section (1A) of section 12 of the Securities and
Exchange Board of India Act, 1992 (15 of 1992) read with the regulations made thereunder
and with the Depositories Act, 1996 ( 22 of 1996) the Board hereby grants a certificate of
registration to.................................................... ........................................... as a participant
subject to the conditions specified in the Act, the Depositories Act and the regulations made
thereunder.
II. Registration Number for the participant is IN/DP/ / /
III. This certificate of registration shall be valid, unless it is suspended or cancelled by
the Board.
Date:
Place: Mumbai
By
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SECOND SCHEDULE
[see regulations 3, 7, 8, 9, 32, 36]
PART A
APPLICATION FEES, REGISTRATION FEES, ANNUAL CHARGE AND ANNUAL
FEES
Application fees payable by applicant (Rs.) 5,00,000
Application fees payable by participant (Rs.) 15,000
Registration fees payable by depository (Rs.) 1,00,00,000
Registration fees payable by participant (Rs.) 2,00,000
Annual fees payable by depository (Rs.) 50,00,000
Annual fees payable by participant (Rs.) 1,000
Annual charges payable by depository 2% of annual custody charges collected by
depositories from issuers
PART B
MANNER OF PAYMENT OF APPLICATION, REGISTRATION, ANNUAL CHARGE
AND ANNUAL FEES
Fees to be paid by Manner of payment

applicant or depository By way of direct credit in the bank
account through NEFT/RTGS/IMPS or any other mode
allowed by RBI or demand draft or bankers cheque payable to the
“Securities and Exchange Board of India” at Mumbai.
Participant Fees to be paid to the depository in which the payer is a Participant. The Depository
shall forward the fees collected from participants to the Board, by
way of direct credit in the bank account through NEFT/RTGS/IMPS
or any other mode allowed by RBI or by a demand draft or bankers
cheque payable to the “Securities and Exchange Board of India” at
Mumbai.
PART C
and Participants) Regulations, 2018 [See regulation
25]
PROCEDURE FOR APPOINTMENT OF DIRECTORS
1. All directors while seeking approval shall submit to the depository the following details
a. Name
b. Address
c. Educational qualification
d. Details of employment/ Occupation, past and present
e. Details of other directorships
f. DIN No.
g. Declaration regarding the fulfillment of requirements specified under regulation
23 of these Regulations.
h. Declaration confirming compliance of Regulation 24(10) read with Regulation
2(1)(c) of these Regulations, in respect of non-association with trading member or
clearing member.
i. Details of regulatory action taken by any statutory authority in India.
j. Details of activities that may in the opinion of the director, lead to his
disqualification.
k. Association, if any, with trading members/ depository participants.
l. Disclosure of the names of his dependents associated with the securities market as
member, depository participant, sub-broker, authorized person or holding any
registration granted by the Board.
m. An undertaking that he shall abide by the code of conduct and code of ethics
prescribed in Part B and Part C of Third Schedule to these Regulations.
n. In the case of public interest directors, consent letters for acting as a public interest
director.
o. Criminal cases completed/ pending before any authority in India or abroad, if any.
(2) The depository, while recommending the names of director, shall forward the above details
to the Board, along with the minutes of the meeting of the governing board where the name was
approved, copy of the shareholder's resolution (wherever applicable), a confirmation by the
depository that the director is a fit and proper person in terms of the criteria specified in these
regulations and are not associated with any depository participant, trading member or clearing
member in terms of regulation 24(10) read with regulation 2(1)(c) of these Regulations.
Managing Director / Executive Director:-

(1) The Nomination and Remuneration Committee of the Depository shall be responsible for
selection of CEO /Managing Director / Executive Director, as the case may be. The managing
director shall be selected through open advertisement in all editions of atleast one national daily
from amongst persons qualified in the fields of capital market/ finance/ management and
possessing sufficient experience.
(2) In case a vacancy of managing director arises due to unforeseen reasons, the depository
shall forward the new names to the Board within 60 days from the date of submission of
resignation or such vacation of office.
Public Interest Directors:-

(1) The names of public interest directors shall be forwarded to the Board after the approval
of the Board of the depository. The shareholders approval shall not be necessary. A minimum
of two names shall be submitted to the Board for each vacancy of public interest directors.
(2) The depository shall ensure that public interest directors are selected from diverse field of
work. While deciding to propose a particular person as a public interest director, the depository
shall also take into account the following factors:
(a) Qualification in the area of law, finance, accounting, economics, management,
administration or any other area relevant to the financial markets.
(b) At least one person may be inducted having experience and background in
finance/accounts who may preferably be inducted in the audit committee.
(c) Persons currently holding positions of trust and responsibility in reputed
organizations or person who have retired from such positions.
(d) Persons who are likely to have interested positions in commercial contracts and
financial affairs of depository may be excluded. Also, persons who are regular
traders/speculators in the market or are director in the board of the applicant of the depository
shall be excluded.
(3) Public interest directors shall peruse the relevant laws, code of conduct, code of ethics, etc
and submit an undertaking to the depository that they are aware of their role, responsibilities
and obligations. The depository may conduct familiarization programmes for newly appointed
Public Interest Directors and may also conduct annual training for every public interest director.
(4) In case of extension of the term of the public interest director or appointment of a new
public interest director, the depository shall apply to the Board two months before the expiry of
the term. In addition to the other requirements prescribed herein, the application for extension
of term of the public interest director shall be accompanied with, his attendance details on
meetings of various committees and on the governing board of the stock exchange / clearing
corporation, performance review and the reasons for extension of term.
(5) The existing public interest director shall continue holding the post, till a new public
interest director is appointed in his place.
Share Holder Directors:-

(1) The names of person(s) to be appointed as shareholder director(s) shall first be
approved by the governing board of the depository followed by shareholders’ approval
before submitting the same to the Board for approval.
(2) The manner of election, appointment, tenure, resignation, vacation, etc., of a
shareholder director shall be governed by the Companies Act, 2013, save as otherwise
specifically provided under these Regulations.
General conditions on appointment of directors:-

(1) The depository shall complete the appointment process within 30 days from
Boards nomination/approval for directors and submit a compliance report within one week
from the date of appointment.
(2) In case any other official of the depository is appointed on the governing board in
addition to the Managing Director, the same shall be subject to the approval of
shareholders and the Board, in that order.
PART D
and Participants) Regulations, 2018 [See
regulation 28 (3)]
Norms for compensation policy

(1) Regulation 28 of these Regulations mandates that the compensation policy for key
management personnel of depository shall be in accordance with the norms specified by
the Board. The compensation norms, in this regard, shall be as follows:-
a) The variable pay component shall not exceed one-third of total pay.
b) Fifty percent of the variable pay shall be paid on a deferred basis after three
years.
c) ESOPs and other equity linked instruments in the depository shall not be
offered or provided as part of the compensation for the key management
personnel.
d) The compensation policy shall have malus and clawback arrangements.
(2) Apart from the above, the compensation policy of the depository shall take into
consideration the following:
a) financial condition / health of the depository
b) average levels of compensation payable to employees in similar ranks,
c) shall not contain any provisions regarding incentives to take excessive risks
over the short term,
d) revenues, net profit of the depository,
e) comparable to the industry standards,
f) role and responsibilities of the key management personnel,
g) periodic review
(3) Further, at the time of seeking approval of the Board for the appointment of the
managing director, the depository shall seek approval for the compensation of the
managing director from the Board.
PART E
and Participants) Regulations, 2018 [See
regulation 22(10)]
Monitoring of shareholding limits
(1) In terms of sub-regulation (4) of regulation 22, the depository shall put in place a
monitoring mechanism to ensure compliance with the shareholding restrictions
prescribed in these Regulations at all times. Depository shall:-
(a) Check the shareholding data on a periodic basis to ensure that the
shareholding restrictions specified under Chapter IV of these regulations are
complied with at all times.
(b) Upon breach of shareholding limits, intimate the same to the Board within
7 days.
(c) In case of listed depository, be guided by circular dated January 01, 2016
issued by the Board.
THIRD SCHEDULE Part-A

(Depositories and Participants) Regulations, 2018
[See regulation 36]
CODE OF CONDUCT FOR PARTICIPANTS

1. A participant shall make all efforts to protect the interests of investors.
2. A participant shall always endeavour to—
(a) render the best possible advice to the clients having regard to the clients needs and
the environments and his own professional skills;
(b) ensure that all professional dealings are effected in a prompt, effective and efficient
manner;
(c) inquiries from investors are adequately dealt with;
(d) grievances of investors are redressed without any delay.
3. A participant shall maintain high standards of integrity in all its dealings with its clients
and other intermediaries, in the conduct of its business.
4. A participant shall be prompt and diligent in opening of a beneficial owner account,
dispatch of the dematerialisation request form, rematerialisation request form and execution
of debit instruction slip and in all the other activities undertaken by him on behalf of the
beneficial owners.
5. A participant shall endeavour to resolve all the complaints against it or in respect of the
activities carried out by it as quickly as possible, and not later than one month of receipt.
6. A participant shall not increase charges/fees for the services rendered without proper
advance notice to the beneficial owners.
7. A participant shall not indulge in any unfair competition, which is likely to harm the
interests of other participants or investors or is likely to place such other participants in a
disadvantageous position while competing for or executing any assignment.
8. A participant shall not make any exaggerated statement whether oral or written to the
clients either about its qualifications or capability to render certain services or about its
achievements in regard to services rendered to other clients.
9. A participant shall not divulge to other clients, press or any other person any information
about its clients which has come to its knowledge except with the approval/authorisation of
the clients or when it is required to disclose the information under the requirements of any
Act, Rules or Regulations.
10. A participant shall co-operate with the Board as and when required.
11. A participant shall maintain the required level of knowledge and competency and
abide by the provisions of the Act, Rules, Regulations and circulars and directions issued by
the Board. The participant shall also comply with the award of the Ombudsman passed under
the Securities and Exchange Board of India (Ombudsman) Regulations, 2003.
12. A participant shall not make any untrue statement or suppress any material fact in
any documents, reports, papers or information furnished to the Board.
13. A participant shall not neglect or fail or refuse to submit to the Board or other
agencies with which it is registered, such books, documents, correspondence, and papers or
any part thereof as may be demanded/requested from time to time.
14. A participant shall ensure that the Board is promptly informed about any action,
legal proceedings, etc., initiated against it in respect of material breach or non-compliance
by it, of any law, Rules, regulations, directions of the Board or of any other regulatory body.
15. A participant shall maintain proper inward system for all types of mail received in
all forms.
16. A participant shall follow the maker—Checker concept in all of its activities to
ensure the accuracy of the data and as a mechanism to check unauthorised transaction.
17. A participant shall take adequate and necessary steps to ensure that continuity in
data and record keeping is maintained and that the data or records are not lost or destroyed.
It shall also ensure that for electronic records and data, up-to-date back up is always available
with it.
18. A participant shall provide adequate freedom and powers to its compliance officer
for the effective discharge of his duties.
19. A participant shall ensure that it has satisfactory internal control procedures in
place as well as adequate financial and operational capabilities which can be reasonably
expected to take care of any losses arising due to theft, fraud and other dishonest acts,
professional misconduct or omissions.
20. A participant shall be responsible for the acts or omissions of its employees and
agents in respect of the conduct of its business.
21. A participant shall ensure that the senior management, particularly decision makers
have access to all relevant information about the business on a timely basis.
22. A participant shall ensure that good corporate policies and corporate governance
are in place.
Part-B
[See regulation 27]
CODE OF CONDUCT FOR DIRECTORS
i. Meetings and minutes

Every director of the depository shall:
a) not participate in discussions on any subject matter in which any conflict of interest exists
or arises, whether pecuniary or otherwise, and in such cases the same shall be disclosed and
recorded in the minutes of the meeting;
b) not encourage the circulation of agenda papers during the meeting, unless circumstances
so require;
c) offer their comments on the draft minutes and ensure that the same are incorporated in the
final minutes;
d) insist on the minutes of the previous meeting being placed for approval in subsequent
meeting;
e) endeavour to have the date of next meeting fixed at each governing board meeting in
consultation with other members of the governing board;
f) endeavour that in case all the items of the agenda of a meeting were not covered for want
of time, the next meeting is held within fifteen days for considering the remaining items.
ii. Code of Conduct for the public interest directors

a) In addition to the conditions stated in Para (i) above, public interest directors of the
depository shall, endeavour to attend all the governing board meetings and they shall be liable
to vacate office if they remain absent for three consecutive meetings of the governing board or
do not attend seventy five percent of the total meetings of the governing board in a calendar
year.
b) Public interest directors shall meet separately, at least once in six months to exchange
views on critical issues.
iii. Strategic planning

a) participate in the formulation and execution of strategies in the best interest of the
depository and contribute towards pro-active decision making at the governing board level;
b) give benefit of their experience and expertise to the depository and provide assistance in
strategic planning and execution of decisions.
iv. Regulatory compliances

a) endeavour to ensure that the depository abides by all the provisions of the Securities and
Exchange Board of India Act, 1992, Depositories Act, 1996, rules and regulations framed
thereunder and the circulars, directions issued by the Board from time to time;
b) endeavour compliance at all levels so that the regulatory system does not suffer any
breaches;
c) endeavour to ensure that the depository takes commensurate steps to honour the time limit
prescribed by Board for corrective action;
d) not support any decision in the meeting of the governing board which may adversely affect
the interest of investors and shall report forthwith any such decision to the Board. v. General
responsibility
a) place priority for redressing investor grievances;
b) endeavour to analyze and administer the depository issues with professional competence,
fairness, impartiality, efficiency and effectiveness;
c) submit the necessary disclosures/statement of holdings/dealings in securities as required
by the depository from time to time as per their bye-laws or Articles of Association;
d) unless otherwise required by law, maintain confidentiality and shall not divulge/disclose
any information obtained in the discharge of their duty and no such information shall be used
for personal gains;
e) maintain the highest standards of personal integrity, truthfulness, honesty and fortitude in
discharge of their duties in order to inspire public confidence and shall not engage in acts
discreditable to their responsibilities;
f) perform their duties in an independent and objective manner and avoid activities that may
impair, or may appear to impair, their independence or objectivity or official duties;
g) perform their duties with a positive attitude and constructively support open
communication, creativity, dedication, and compassion;
h) not engage in any act involving moral turpitude, dishonesty, fraud, deceit, or
misrepresentation or any other act prejudicial to the administration of the depository.
Part-C

[See regulation 27]
CODE OF ETHICS FOR DIRECTORS AND KEY MANAGEMENT PERSONNEL
The ‘Code of Ethics’ for directors and key management personnel of the depository, is aimed
at improving the professional and ethical standards in the functioning of depository thereby
creating better investor confidence in the integrity of the securities market.
i. Objectives and underlying principles

The Code of Ethics for directors and key management personnel of the depository seeks to
establish a minimum level of business/ professional ethics to be followed by these directors and
key management personnel, towards establishing a fair and transparent marketplace. The Code
of Ethics is based on the following fundamental principles:
• Fairness and transparency in dealing with matters relating to the depository and the
investors.
• Compliance with all laws / rules / regulations laid down by regulatory agencies /
depositories.
• Exercising due diligence in the performance of duties.
• Avoidance of conflict of interest between self-interest of directors/ key
management personnel and interests of depository and investors.
ii. Regulatory Oversight Committee

For overseeing implementation of this Code, a regulatory oversight committee shall be
constituted by every depository under the governing board.
iii. General standards

a) Directors and key management personnel shall endeavour to promote greater awareness
and understanding of ethical responsibilities.
b) Directors and key management personnel, in the conduct of their business shall observe
high standards of commercial honour and just and equitable principles of trade.
c) The conduct of directors and key management personnel in business life should be
exemplary.
d) Directors and key management personnel shall not use their position to give/get favours
to/from the executive or administrative staff of the depository, suppliers of the depository, or
any issuer company admitted to the depository.
e) Directors and key management personnel shall not commit any act which will put the
reputation of the depository, in jeopardy.
f) Directors, committee members and key management personnel of the depository, shall
comply with the provisions of all applicable law to the securities market.
iv. Disclosure of dealings in securities by key management personnel of the depository

a) Key management personnel of the depository shall disclose on a periodic basis as
determined by the depository (which could be monthly), all their dealings in securities, directly
or indirectly, to the governing board/regulatory oversight committee/ Compliance Officer.
b) The dealings in securities shall also be subject to trading restrictions for securities about
which key management personnel in the depository may have non-public price sensitive
information. Requirement laid down under Securities and Exchange Board of India (Prohibition
of Insider Trading) Regulations, 2015 may be referred in this regard.
c) All transactions must be of an investment nature and not speculative in nature. Towards
this end, all securities purchased must be held for a minimum period of 60 days before they are
sold. However, in specific/exceptional circumstances, sale can be effected anytime by obtaining
preclearance from the Compliance Officer to waive this condition after recording in writing his
satisfaction in this regard.
Explanation: ‘securities’ for the purpose of this Code shall not include units of mutual fund.
v. Disclosure of dealings in securities by directors of the depository
a) All transactions in securities by the directors and their relatives shall be disclosed to the
governing board of the depository.
b) All directors shall also disclose the trading conducted by firms/corporate entities in which
they hold twenty percent or more beneficial interest or hold a controlling interest, to the
regulatory oversight committee.
c) Directors who are Govt. of India nominees or nominees of Govt. of India statutory bodies
or financial institutions and are governed by their own codes shall be exempt from this
requirement.
vi. Avoidance of conflict of interest

a) No director of the governing board or member of any committee of the depository shall
participate in any decision making/adjudication in respect of any person /matter in which he is
in any way, directly or indirectly, concerned or interested.
b) Whether there is any conflict of interest or not in a matter, shall be decided by the
governing board.
vii. Disclosures of beneficial interest

All directors and key management personnel shall disclose to the governing board, upon
assuming office and during their tenure in office, whenever the following arises:-
a) any fiduciary relationship of self and family members and directorship/partnership of self
and family members in any depository participant or registrar and transfer agent;
b) shareholding, in cases where the shareholding of the director key management personnel,
directly or through his family exceeds five percent in any listed company or in other entities
related to the securities markets; c) any other business interests.
viii. Role of the Chairman and directors in the day to day functioning of the depository
a) The Chairman and directors shall not interfere in the day to day functioning of the
depository and shall limit their role to decision making on policy issues and to issues as the
governing board may decide.
b) The Chairman and directors shall abstain from influencing the employees of the depository
in conducting their day to day activities.
c) The Chairman and directors shall not be directly involved in the function of appointment
and promotion of employees unless specifically so decided by the governing board.
ix. Access to information

a) Directors shall call for information only as part of specific committees or as may be
authorised by the governing board.
b) There shall be prescribed channels through which information shall move and further there
shall be audit trail of the same. Any retrieval of confidential documents/ information shall be
properly recorded.
c) All such information, especially which is non-public and price sensitive, shall be kept
confidential and not be used for any personal consideration/ gain.
d) Any information relating to the business/operations of the depository, which may come to
the knowledge of directors/ key management personnel during performance of their duties shall
be held in strict confidence, shall not be divulged to any third party and shall not be used in any
manner except for the performance of their duties.
x. Misuse of position
Directors/committee members shall not use their position to obtain business or any pecuniary
benefit in the organization for themselves or family members.
xi. Regulatory oversight committee to lay down procedures

a) The regulatory oversight committee shall lay down procedures for the implementation of
the Code and prescribe reporting formats for the disclosures required under the Code.
b) The Compliance Officer shall execute the requirements laid down by the regulatory
oversight committee.
While the objective of this Code is to enhance the level of market integrity and investor
confidence, it is emphasized that a written Code of ethics may not completely guarantee
adherence to high ethical standards. This can be accomplished only if directors and key
management personnel of the depository commit themselves to the task of enhancing the
fairness and integrity of the system in letter and spirit.
Part-D
[See regulation 17]
CODE OF CONDUCT FOR DEPOSITORIES
1. A depository shall always abide by the provisions of the Act, Depositories Act, 1996,
Rules, Regulations, circulars, guidelines and any other directions issued by the Board.
2. A depository shall take appropriate measures towards investor protection and education of
investors.
3. A depository shall treat all its applicants/participants in a fair and transparent manner.
4. A depository shall promptly inform the Board of violations of the provisions of the Act,
Depositories Act, the rules, the regulations, circulars, guidelines or any other directions by
any of its participants, issuer or issuer’s agent.
5. A depository shall take a proactive and responsible attitude towards safeguarding the
interests of investors, integrity of the depository system and the securities market.
6. A depository shall make endeavors for introduction of best business practices amongst
itself and its participants.
7. A depository shall act in utmost good faith and shall avoid conflict of interest in the
conduct of its functions.
8. A depository shall not indulge in unfair competition, which is likely to harm the interests
of any other depository, participants or investors or is likely to place them in a
disadvantageous position while competing for or executing any assignment.
9. A depository shall be responsible for the acts or omissions of its employees in respect of
the conduct of its business.
10. A depository shall monitor the compliance of the rules and regulations by the participants
and shall further ensure that their conduct is in a manner that will safeguard the interest of
investors and the securities market.
FOURTH SCHEDULE
[See regulation 29]
MEASUSRES TO ENSURE AUTONOMY OF REGULATORY DEPARTMENTS

In order to ensure the segregation of regulatory departments, every depository shall adopt a
"Chinese Wall" policy which separates the regulatory departments of the depository from the
other departments. The employees in the regulatory departments shall not communicate any
information concerning regulatory activity to any one in other departments. The employees in
regulatory areas may be physically segregated from employees in other departments including
with respect to access controls. In exceptional circumstances employees from other departments
may be given confidential information on "need to know" basis, under intimation to the
Compliance Officer. For the purposes of the above, "regulatory areas" shall mean those
departments of a depository which are mandated by law or those entrusted with regulatory
powers and duties, and may include departments performing the following functions:
(i) risk management;

(ii) surveillance;
(iii) participant registration;
(iv) Issuer/ securities admission;
(v) compliance;
(vi) inspection;
(vii) enforcement;
(viii) arbitration; (ix) investor protection;
(x) investor services.
Sd/-
AJAY TYAGI
CHAIRMAN
SECURITIES AND EXCHANGE BOARD OF INDIA

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SECURITIES AND EXCHANGE BOARD OF INDIA (DEPOSITORIES AND

http://rbigradeb.wordpress.com Page|1 http://www.edutap.co.in

Items 1-6 pertain to an applicant

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[See regulation 11]

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Certificate of commencement of business as depository

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Application for grant of approval for acquisition of shares of a depository

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For and on behalf of.............................................

Application for Grant of Certificate of Registration as Participant

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Certificate of Registration as Participant

Fees to be paid by Manner of payment

PROCEDURE FOR APPOINTMENT OF DIRECTORS

Managing Director / Executive Director:-

Public Interest Directors:-

Share Holder Directors:-

General conditions on appointment of directors:-

Norms for compensation policy

THIRD SCHEDULE Part-A

CODE OF CONDUCT FOR PARTICIPANTS

i. Meetings and minutes

ii. Code of Conduct for the public interest directors

iii. Strategic planning

iv. Regulatory compliances

Securities and Exchange Board of India (Depositories

CODE OF ETHICS FOR DIRECTORS AND KEY MANAGEMENT PERSONNEL

i. Objectives and underlying principles

ii. Regulatory Oversight Committee

iii. General standards

iv. Disclosure of dealings in securities by key management personnel of the depository

vi. Avoidance of conflict of interest

vii. Disclosures of beneficial interest

ix. Access to information

xi. Regulatory oversight committee to lay down procedures

CODE OF CONDUCT FOR DEPOSITORIES

MEASUSRES TO ENSURE AUTONOMY OF REGULATORY DEPARTMENTS

(i) risk management;

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