THE DEPOSITORIES ACT (AMENDMENT) BILL, 1998
A Bill to amend the Depositories Act, 1996.
BE IT enacted by Parliament in the Forty-eighth year
of the Republic of India as follows :
CHAPTER - I
PRELIMINARY
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Short title and commencement - (1) This Bill may be called
the Depositories Laws (Amendment) Act, 1998.
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It shall be deemed to come into force from the day of
its notification in the Official Gazette of India.
CHAPTER - II
AMENDMENTS TO THE DEPOSITORIES ACT, 1996
Amendment of Section 4 - In sub-section (1) of
Section 4, the words " as its agent " shall be omitted.
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Insertion of new Section 4A - After Section 4 of the Depositories
Act (an Act of 22 of 1996) (hereafter referred to as the Principal Act),
the following section shall be inserted namely :
" 4A. Issuer not to resile from the agreement
- A Depository shall enter into an agreement with the issuer in accordance
with the provisions of this Act and the Bye-laws made by the Depository.
The issuer shall not be entitled to resile from the said agreement without
obtaining the prior leave from the depository. Before granting such leave,
the depository shall take into consideration the interests of the investors
and other rel