On May 10, 2024, the Securities and Exchange Board of India (SEBI) issued a crucial amendment, titled “Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2024,” concerning the payment of annual charges by depositories.
The amendment primarily focuses on regulation 9 of the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018. Regulation 9, pertaining to the payment of annual charges, has been substituted with a new provision mandating depositories to pay a percentage of the annual custody charges received from issuers to the Board. The payment is to be made within fifteen days from the end of each month, as outlined in Part A of the Second Schedule.
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 10th May, 2024
SECURITIES AND EXCHANGE BOARD OF INDIA (DEPOSITORIES AND PARTICIPANTS) (AMENDMENT) REGULATIONS, 2024
No. SEBI/LAD-NRO/GN/2024/173.—In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992(15 of 1992) read with section 25 of the Depositories Act, 1996 (22 of 1996), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 namely,—
1. These regulations may be called the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2024.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Depositories and Participants) Regulations, 20188, regulation 9 shall be substituted with the following regulation, namely, –
“Payment of annual charge
9. A depository shall, within fifteen days from the end of each month, pay as provided in Part A of the Second Schedule, a percentage of the annual custody charges received by it from the issuers during the month, to the Board in the manner provided in Part B thereof.”
BABITHA RAYUDU, Executive Director
[ADVT.-III/4/Exty./096/2024-25]
Footnote:
1. The Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 were published in the Gazette of India on October 3, 2018 vide No. No. SEBI/LAD-NRO/GN/201 8/40.
2. The Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 were subsequently amended on, –
a. 4th June, 2019 by the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2019 vide No. SEBI/LAD-NRO/GN/2019/20.
b. 21st February, 2020 by the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/04.
c. 17th April, 2020, by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2020, vide No. SEBI/LAD-NRO/GN/2020/10.
d. 5th May, 2021, by the Securities and Exchange Board of India(Payment of Fees and Mode of Payment) (Amendment) Regulations2021, vide No. SEBI/LAD-NRO/GN/202 1/23.
e. 3rd August, 2021, by the Securities and Exchange Board of India(Regulatory Sandbox) (Amendment) Regulations, 2021, vide No. SEBI/LAD-NRO/GN/202 1/30.
f. 13th August, 2021 by the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2021vide
h. 23rd February 2022 by the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2022 vide No. SEBI/LAD-NRO/GN/2022/74.No. SEBI/LAD-NRO/GN/2022/74.
i. 2nd March 2023 by the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/125.
j. 22nd August, 2023 by the Securities and Exchange Board of India (Depositories and Participants) (Second Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/147.
