Regulation 42 - Separate accounts - Securities And Exchange Board of India (Depositories And Participants) Regulations, 1996

Separate accounts. 42. (1) Separate accounts shall be opened by every participant in the name of each of the beneficial owners and the securities of each beneficial owner shall be segregated, and shall not be mixed up with the securities of other beneficial owners or with the participant s own securities. (2) A participant shall register the transfer of securities to or from a beneficial owner s account only on receipt of instructions from the beneficial owner and thereafter confirm the same to the beneficial owner in a manner as specified by the depository in its bye-laws. (3) Every entry in the beneficial owner s account shall be supported by electronic instructions or any other mode of instruction received from the beneficial owner in accordance with the agreement with the beneficial owner.