Records and Documents to be Maintained by Participant (Regulation 49(1))

1. records of all the transactions entered into with a depository and with a beneficial owner;

2. details of securities dematerialised, rematerialised on behalf of beneficial owners with whom it has entered into an agreement;

3. records of instructions received from beneficial owners and statements of account provided to beneficial owners; and

4. records of approval, notice, entry and cancellation of pledge or hypothecation, as the case may be.

Manner of Keeping Records (Regulation 50): Where records are kept electronically by the participant, it shall ensure that the integrity of the data processing systems is maintained at all times and take all precautions necessary to ensure that the records are not lost, destroyed or tampered with and in the event of loss or destruction, ensure that sufficient back up of records is available at all times at a different place.

Records to be Maintained Depository-wise (Regulation 51): If a participant enters into an agreement with more than one depository, it shall maintain the records specified in regulation 49 separately in respect of each depository.

Prohibition of Assignment Systems (Regulation 52 ): No participant shall assign or delegate its functions as participant to any other person, without the prior approval of the depository.

Agreement by Issuer (Regulation 53 ): Every issuer whose securities have been declared as eligible to be held in dematerialised form in a depository shall enter into an agreement with the depository in accordance with the provisions of regulation 29. No agreement shall be required to be entered into in case:

1. the depository is the issuer of securities; or

2. the State or the Central Government is the issuer of Government securities.

Manner of Surrender of Certificate of Security (Regulation 54)

1. Any beneficial owner, who has entered into an agreement with a participant, shall inform the participant of the details of the certificate of security, which is to be dematerialised, and shall surrender such certificate to the participant: Provided that where a beneficial owner has appointed a custodian of securities, then he may surrender the certificates of security to the participant through his custodian of securities.

2. The participant shall, on receipt of information as above, forward such details of the certificate of security to the depository and shall confirm to the depository that an agreement has been entered into between the participant and the beneficial owner.

3. The participant shall maintain records indicating the names of beneficial owners of the securities surrendered, the number of securities and other details of the certificate of security received.

4. The participant shall, furnish to the issuer details specified along with the certificate of security referred to earlier.

5. The issuer shall on receipt of the certificate of security from the participant immediately mutilate and cancel it and substitute in its records the name of the depository as the registered owner and shall send a certificate to this effect to the depository and to every stock exchange where the security is listed.

6. Immediately upon receipt of information from the issuer , the depository shall enter in its records the name of the person who has surrendered the certificate of security as the beneficial owner, as well as the name of the participant from whom it has received intimation, and shall send an intimation of the same to the participant.

7. The issuer shall maintain a record of certificates of securities, which have been dematerialised.

Reconciliation (Regulation 55 ): The issuer or its agent shall reconcile the records of dematerialised securities with all the securities issued by the issuer, on a daily basis. Where the State or the Central Government is the issuer of Government securities, the depository shall, on a daily basis, reconcile the records of the dematerialised securities.

Connectivity (Regulation 56): Every issuer or its agent shall establish continuous electronic means of communication with the depository with which it has entered into an agreement.

Information (Regulation 57): Every issuer whose securities have been declared as eligible for dematerialisation in a depository shall give information to the depository about book closures, record dates, dates for the payment of interest or dividend, dates for annual general meetings and other meetings, dates for redemption of debentures, dates for conversion of debentures and warrants, call money dates and such other information at the time and in the manner as may be specified by the depository in its bye-laws or agreement. No such information would be required to be given to the depository where the State or the Central Government is the issuer of Government securities.

Manner of Creating Pledge or Hypothecation (Regulation 58)

1. If a beneficial owner intends to create a pledge on a security owned by him, he shall make an application to the depository through the participant who has his account in respect of such securities.

2. The participant after satisfaction that the securities are available for pledge shall make a note in its records of the notice of pledge and forward the application to the depository

3. The depository after confirmation from the pledgee that the securities are available for pledge with the pledgor shall within fifteen days of the receipt of the application create and record the pledge and send an intimation of the same to the participants of the pledgor and the pledgee.

4. On receipt of the intimation under sub-regulation (3) the participants of both the pledgor and the pledgee shall inform the pledgor and the pledgee respectively of the entry of creation of the pledge.

5. If the depository does not create the pledge, it shall send along with the reasons an intimation to the participants of the pledgor and the pledgee.

6. The entry of pledge made under sub-regulation (3) may be cancelled by the depository if the pledgor or the pledgee makes an application to the depository through its participant. No entry of pledge shall be cancelled by the depository with the prior concurrence of the pledgee.

7. The depository on the cancellation of the entry of pledge shall inform the participant of the pledgor.

8. Subject to the provisions of the pledge document, the pledgee may invoke the pledge and on such invocation, the depository shall register the pledgee as beneficial owner of such securities and amend its records accordingly.

9. After amending its records the depository shall immediately inform the participants of the pledgor and pledgee of the change who in turn shall make the necessary changes in their records and inform the pledgor and pledgee respectively.

10. If a beneficial owner intends to create a hypothecation on a security owned by him he may do so in accordance with the provisions of sub-regulations (1) to (9) above. The provisions of sub - regulations (1) to (9) above shall mutatis mutandis apply in such cases of hypothecation. Provided that the depository before registering the hypothecatee as a beneficial owner shall obtain the prior concurrence of the hypothecator.

11. No transfer of security in respect of which a notice or entry of pledge or hypothecation is in force shall be effected by a participant without the concurrence of the pledgee or the hypothecatee as the case may be.

Investment Advice (Regulation 58A)

1. A depository or a participant or any of their employees shall not render, directly or indirectly, any investment advice about any security in the publicly accessible media whether real-time or non-real-time, unless a disclosure of his interest including long or short position in the said security has been made, while rendering such advice.

2. In case an employee of the depository or the participant is rendering such advice, he shall also disclose the interest of his dependent family members and the employer including their long or short position in the said security, while rendering such advice.

Appointment of Compliance Officer (Regulation 58A): A depository and a participant shall appoint a compliance officer who shall be responsible for monitoring of the compliance of the Act, rules and regulations, notifications, guidelines, instructions, etc., issued by the Board or the Central Government and for redressal of investor's grievances. The compliance officer shall immediately and independently report to the Board any non-compliance observed by him]