Clarifications in SEBI (Depositories and Participants) Regulations, 2018
Summary
This circular clarifies that recognized clearing corporations and certain employees or directors are not considered Depository Participants under specific regulations. It directs depositories to implement necessary systems, amend bye-laws, and disseminate these clarifications to market participants. The directive is issued under Section 11(1) of the SEBI Act and Section 19 of the Depositories Act.
Text
For the purpose of Regulation 24 (9) and Regulation 24 (10) of SEBI (D&P) Regulations 2018, a recognized clearing corporation shall not be considered as a Depository Participant.
For the purpose of 24(10) of SEBI (D&P) Regulations 2018, in addition to the directors, employee/s of entities mentioned in Regulation 24 (10) shall not be considered as Depository Participant or their associate.
Depositories are directed to take necessary steps to put in place systems for implementation of the circular, including necessary amendments to the relevant bye-laws, rules and regulations.
Depositories must bring the provisions of this circular to the notice of the depository participants / other market participants and also disseminate the same on their website.
Depositories must communicate to SEBI the status of implementation of the provisions of this circular through monthly development report.
This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Section 19 of the Depositories Act, 1996.
Source: SecMarx — Clarifications in SEBI (Depositories and Participants) Regulations, 2018. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.