Depository registration conditions restrict shareholdings, limit non depository activities, and impose governance, compliance and grievance redressal obligations. Certificate of registration is granted subject to payment of the prescribed fee and compliance with the Act, Depositories Act, bye laws, agreements and regulations; limitation of activities to depository functions except incidental activities or approved Strategic Business Units; sponsor holding at least fifty one per cent of equity with specified caps for recognised stock exchange sponsors; participant and non sponsor holding limits including combined non resident holding ceilings and restrictions on foreign portfolio investor acquisitions and board representation; prompt disclosure of false or changed information; thirty day grievance redressal; commencement application within one year; and bye law amendments as directed by the Board.