Section 3 of the Depositories Act, 1996 – Certificate of commencement of business by depositories

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Section 3: Certificate of commencement of business by depositories

  • (1) No depository shall act as a depository unless it obtains a certificate of commencement of business from the Board.
  • (2) A certificate granted under sub-section (1) shall be in such form as may be specified by the regulations.
  • (3) The Board shall not grant it certificate under sub-section (1) unless it is satisfied that the depository has adequate systems and safeguards to prevent manipulation of records and transactions: Provided that no certificate shall be refused under this section unless the depository concerned has been given a reasonable opportunity of being heard.

Source: official text of The Depositories Act, 1996 as published on India Code (PDF). All sections of the Depositories Act, 1996.

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