Part I B: Dematerialisation / Depositories Act, 1996 - Amendments 

• Issuer not to resile or withdraw from agreement with depository after dematerlisation of its securities.
• Option to issuer to enter into agreement with anyone of the depository in case of several depositories.
• Nomination facility to the beneficial owner in respect of dematerialised security.
• In case of pledge of dematerialised securities, the provisions of Contract Act not to be applicable.
• Bankers Book Evidence Act, 1879 applicable also to the statement issued by
• "participant".
• Depository to indemnify the beneficial owner only for its own negligence and fraud and
• not generally.
• Contravention of direction of the Board is made punishable.
• Appeal to lie to Securities Appellate Tribunal from the order of the Board.
• Jurisdiction of Consumer Forum barred in relation to dispute relating to dematerialised
• securities.
• Depository Act to override memorandum and articles of association of companies.
• Exemption from stamp duty in respect of issue and transfer of dematerialised security.
• Participants to hold securities of beneficial owner as trustee pending dematerialisation .
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 * Special problems - Plantation companies   [BACK]