Segregation of functions requires depositories to separate regulatory and critical operations with Chinese Wall protections and prioritised resourcing. Depositories must segregate functions into three verticals-Critical Operations; Regulatory, Compliance, Risk Management and Investor Grievances; and Other functions-and prioritise the first two. They must periodically assess resources for the priority verticals, follow the Fourth Schedule for function allocation, and implement a Chinese Wall policy that prevents cross-vertical communication, enforces physical and access segregation, and allows exceptional need-to-know disclosures under intimation to the Compliance Officer.