Section 15 in The Depositories Act, 1996
Title: Act 18 of 1891 to apply to depositories
The Bankers' Books Evidence Act, 1891 shall apply in relation to a depository as if it were a bank as defined in section 2 of that Act.
Title: Depositories to indemnify loss in certain cases
(1) Without prejudice to the provisions of any other law for the time being in force, any loss caused to the beneficial owner due to the negligence of the depository or the participant, the depository shall indemnify such beneficial owner.
(2) Where the loss due to the negligence of the participant under sub-section (1) is indemnified by the depository, the depository shall have the right to recover the same from such participant.
Title: Rights and obligations of depositories, etc
(1) Subject to the provisions of this Act, the rights and obligations of the depositories, participants and the issuers whose securities are dealt with by a depository shall be specified by the regulations.
(2) The eligibility criteria for admission of securities into the depository shall be specified by the regulations.
Title: Power of Board to call for information and enquiry.
(1) The Board, on being satisfied that it is necessary in the public interest or in the interest of investors so to do, may, by order in writing,--
(a) call upon any issuer, depository, participant or beneficial owner to furnish in writing such information relating to the securities held in a depository as it may require; or
(b) authorise any person to make an enquiry or inspection in relation to the affairs of the issuer, beneficial owner, depository or participant, who shall submit a report of such enquiry or inspection to it within such period as may be specified in the order.
(2) Every director, manager, partner, secretary, officer or employee of the depository or issuer or the participant or beneficial owner shall on demand produce before the person making the enquiry or inspection all information or such records and other documents in his custody having a bearing on the subject matter of such enquiry or inspection.
Title: Power of Board to give directions in certain cases
1 Save as provided in this Act, if after making or causing to be made an enquiry or inspection, the Board is satisfied that it is necessary—
(i) in the interest of investors, or orderly development of securities market; or
(ii) to prevent the affairs of any depository or participant being conducted in the manner detrimental to the interests of investors or securities market,
it may issue such directions—
(a) to any depository or participant or any person associated with the securities market; or
(b) to any issuer,
as may be appropriate in the interest of investors or the securities market.
2[Explanation.--For the removal of doubts, it is hereby declared that power to issue directions under this section shall include and always be deemed to have been included the power to direct any person, who made profit or averted loss by indulging in any transaction or activity in contravention of the provisions of this Act or regulations made thereunder, to disgorge an amount equivalent to the wrongful gain made or loss averted by such contravention.
3[(2) Without prejudice to the provisions contained in sub-section (1) and section 19H, the Board may, by order, for reason to be recorded in writing, levy penalty under sections 19A, 19B, 19D, 19E, 19F, 19FA and 19G after holding an inquiry in the prescribed manner.]
1. Section 19 numbered as sub-section (1) thereof by Act 13 of 2018, s. 192 (w.e.f. 8-3-2019).
2. Ins. by Act 27 of 2014, s. 41 (w.e.f. 8-9-2014).
3. Ins. by Act 13 of 2018, s. 192 (w.e.f. 8-3-2019)