Service of any service relating to the registration of the assignment of securities or the transfer of ownership of securities in the register of a depositary. National Securities Depository Ltd.c. SEBI, Civil Appeal No. 5173 of 2006 with Civil Appeal No. 186 of 2007 of 07/03/2017 (Supreme Court) – In this case before the Supreme Court, a circular issued by SEBI has been challenged. The circular recommended that depositaries amend all laws, rules and regulations as of 09.01.2006 to ensure that no fees are levied on a beneficial owner by a depositary and, consequently, by a depositary when the beneficial owner transfers all the securities in its account to another branch of the same depositary or to another depositary. The Supreme Court upheld the circular and dismissed the appeals. A depositary is entitled to issue its own articles of association which are in accordance with the Depositaries Act 1996 and the rules and regulations set out therein for the following matters: Registered Owner means a depositary whose name is registered as such in the issuer`s registry. Depositary means a company incorporated and registered under the Companies Act, 2013, to which a certificate of registration has been issued under the Securities and Exchange Board of India Act, 1992. By-laws means by-laws made by a depositary under section 26 of this Act. The Depositary Act 1996 was first introduced before the Lok Sabha on 11/07/1996 as the Depositaries Bill of 1996.
The law was passed on 16.07.1996 in the Lok Sabha and adopted on 23.07.1996 by the Rajya Sabha. The draft law received the approval of the President on 08.10.1996. Jayanand Jayant Salgaonkar v. Jayashree Jayant Salgaonkar & Anr., Suit No. 503 of 2014 (Bombay High Court) – In this case, the Bombay High Court ruled that legal heirs and not candidates receive ownership rights in share certificates. He noted that the appointment provided for only one depositary. The candidate continues to hold the securities in trust and trust for statutory inheritance tax under estate law. Therefore, the rights of a candidate cannot take precedence over the rights of the legal heirs of the deceased, and this is because the Depositaries Act of 1996 does not replace inheritance law.
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