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Securities And Exchange Board Of India (Depositories And Participants) Amendment Regulations, 1997 - S.O. No.91(E) - SEBI/LE-XVI(1)/509/97 - SEBIExtract SECURITIES AND EXCHANGE BOARD OF INDIA Mumbai, the 7th February, 1997 S. O. 91(E). -In exercise of the powers conferred by sub-section (1) of Section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) read with section 25 of the Depositories Act, 1996 (22 of 1996) the Board hereby makes the following regulations to amend the securities and Exchange Board of India (Depositories and Participants) Regulations, 1996. 1. (i) These regulations may be called the Securities and Exchange Board of India (Depositories and Participants) Amendment Regulations, 1997. (ii) They shall come into force on the date of their publication in the Official Gazette. 2. In the Securities and Exchange Board of India (Depository and Participants) Regulations 1996, the following additions and substitutions shall be made: (a) (i) existing Clause (b) of Regulation 2 shall be substituted by the following words :- Depositories Act means the Depositories Act, 1996 (22 of 1996) (ii) in the regulations whereevcr the words Depositories Ordinance occur, they shall be replaced by the words Depositories Act . (b) in regulation 7 at the end of clause (e) and before clause (f) a new proviso shall be added as follows:- Provided that for the purposes of clause (d) and clause (e) no foreign entity individually or collectively either as a sponsor or as a participant or as a sponsor and participant together shall hold more than 20% of the equity capital of a Depository . Explanation :-For the purpose of this regulation, a foreign entity shall mean a body corporate or an entity where more than 51% of its equity is held by persons who are not citizens of India. (c) (i) In clause (vii) of sub-regulation (a) of Regulation 19 the words or a clearing house shall be added after the words a clearing corporation and before the words of a stock exchange . (ii) in clause (ix) of sub-regulation (a) of Regulation 19 after the existing proviso, a new proviso shall be added as follows : Provided further that a non-banking finance company may act as a participant on behalf of any other person, if it has a networth of ₹ 50 crore in addition to the networth specified by any other authority (d) Existing sub-regulation (1) of Regulation 29 shall be substituted by the following : 29(1) Either on the issuer or on the investor exercising an option to hold his securities with a depository in dematerialised form, the issuer shall enter into an agreement with the depository to enable the investor to dematerialise the securities . (e) in sub-regulation (I) of regulation 38 after clause (c) a new clause (cc) shall be added as follows : (cc) details of the holdings of the securities of the beneficial owners as at the end of each day. (f) in sub-regulation (3) of Regulation 58, the following amendments shall be made ; (i) after the words through the participant and before the words if it approves the creation the following words shall be deleted :- the depository shall make such investigation as it may consider necessary and (ii) after the words through the participant and before the words if it approves the creation the following words shall be added :- and after the investigation, if any, the depository shall within fifteen days of the receipt of the application, approve or disapprove the creation of the pledge or the hypothecation and . [F. No. SEBI/LE-XVI(1)/509/97] D. R. MEHTA, Chairman
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