The Securities and Exchange Board of India (SEBI) plays a pivotal role in regulating and overseeing the securities market. To streamline and provide clarity on various aspects related to depositories, SEBI periodically issues circulars and directions. As of October 6, 2023, SEBI has released a comprehensive document known as the “Master Circular for Depositories.” This Master Circular serves as a compilation of all relevant circulars and communications issued by SEBI up to August 31, 2023, and provides guidance and regulations for all stakeholders in the securities market.
Securities and Exchange Board of India
Master Circular No. SEBI/HO/MRD/MRD-PoD-2/P/CIR/2023/166 Dated: October 06, 2023
To, All Depositories
Dear Sir / Madam,
Subject: Master Circular for Depositories
1. Securities and Exchange Board of India (SEBI), from time to time, has been issuing various circulars/directions to Depositories. Further, a Master Circular in the form of a compilation of all the relevant circulars was also issued on this subject on February 05, 2021. In order to enable the users to have access to all the applicable circulars/directions pertaining to depositories at one place, the Master Circular for Depositories has been prepared.
2. This Master Circular shall come into force from the date of its issuance. This Master Circular covers the relevant circulars/communications pertaining to depositories issued by SEBI upto August 31, 2023. References to the Statutes/Regulations which now stand repealed have been suitably updated in the Master Circular. This Master Circular rescinds the circulars and communications listed in Schedule-A.
3. Notwithstanding such rescission:
a) anything done or any action taken or purported to have been done or taken under the rescinded circulars, including registrations or approvals granted, fees collected, registration or approval suspended or cancelled, any inspection or investigation or enquiry or adjudication commenced or show-cause notice issued, prior to such rescission, shall be deemed to have been done or taken under the corresponding provisions of this Master Circular;
b) any application made to SEBI under the rescinded circulars, prior to such rescission, and pending before it shall be deemed to have been made under the corresponding provisions of this Master Circular;
c) the previous operation of the rescinded circulars or anything duly done or suffered thereunder, any right, privilege, obligation or liability acquired, accrued or incurred under the rescinded circulars, any penalty, incurred in respect of any violation committed against the rescinded circulars, or any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty as aforesaid, shall remain unaffected as if the rescinded circulars have never been rescinded.
4. The Master Circular consists of four sections i.e. Beneficial Owner (BO) Accounts, Depository Participants (DP) Related, Issuer related and Depositories Related. Efforts have been made to include provisions of circulars/communications relevant to each sections. However, cross referencing of circulars/communications amongst the sections may exist. Users may refer other sections also for compliance to provisions applicable to them.
5. Words and expressions used but not defined in this Circular shall have the same meanings as may be defined in Securities Contracts (Regulation) Act, 1956 or the Securities and Exchange Board of India Act, 1992 or the Depositories Act, 1996 or Regulations made thereunder i.e. Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018, SEBI (Depositories and Participants) Regulations, 2018, PIT Regulations, SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, unless the context requires otherwise.
6. This Master Circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
7. This Master Circular is available on the SEBI website at https://www.sebi.gov.in/ under the category “Legal Master Circulars”.
Yours faithfully
Vishal Shukla
General Manager
Market Regulation Department
Email: vishals@sebi.gov.in
Phone 022-26449959
