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Sebi issues circular providing clarity on norms for depository participants

The development comes after stock exchanges, depositories, public financial institutions and public sector banks had sought certain clarifications from the Sebi

Press Trust of India  |  New Delhi 

sebi

Employees of public financial institutions as well as those without any identifiable ultimate promoters will not be considered as depository participants under norms, according to a circular.

The regulator on Wednesday issued a circular providing clarity on certain provisions of regulations related to depository participants.

The development comes after stock exchanges, depositories, public financial institutions and public sector banks had sought certain clarifications from the (Sebi).

According to the regulator, a person will not be considered or its associate, if the same is on the board of a public financial institution or public sector bank, or which has no identifiable ultimate promoter.

A person who is a director in an entity, that itself is a or has associate as depository participant, then the same will be considered as a

Besides, the watchdog said that a "recognised clearing corporation" would not be considered as a depository participant with respect to certain provisions under the regulations for depositories and participants.

The clarification relates to composition of the governing board of depositories.

First Published: Wed, January 23 2019. 18:50 IST
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