Depositories and Participants
Integrated module covering Depositories Act, DP regulation, beneficial ownership and pledge.
Depositories Act, DP regulation, beneficial ownership and pledge8 control pages
Reviewed by Ravi Sisodia · Last reviewed 25 July 2026
What this module covers
India’s depository system runs on the Depositories Act, 1996 (the parent statute establishing dematerialised holding through depositories) read with the SEBI (Depositories and Participants) Regulations, 2018 (last amended 30 April 2025), which govern how Depository Participants (DPs) — the banks and brokers who actually open and operate demat accounts — are registered and supervised. Beneficial ownership is recorded and tracked through the depository system rather than through physical share certificates, and pledge transactions have their own specific mechanics: under Regulation 79(8), once a pledgee invokes a pledge on shares held in demat form, the depository must record the pledgee itself as the new beneficial owner, not merely note a lien.
The 8 control pages below turn this framework into operational checkpoints — confirming DP registration and account-opening controls (P-01) through to inspection-readiness (P-08) — covering beneficial-ownership record accuracy, pledge creation/invocation mechanics, and the safekeeping obligations a DP owes the underlying beneficial owner.
Control pages
Governance and responsible persons
Onboarding, eligibility and due diligence
Funds, securities, custody and segregation
Valuation, pricing, fees and conflicts
Disclosure, reporting and website
Complaints, defaults and investor protection
Inspection, enforcement and evidence
Official sources
Current law status: the Depositories Act, 1996 and the DP Regulations are in force as of this review date, last amended 30 April 2025. Verify for further amendments before relying on this page for a live compliance decision.