Non-disposal undertakings must be recorded in the depository system, creating a freeze that prevents dealings until joint cancellation. Depositories must provide a dedicated module to record Non Disposal Undertakings (NDUs), requiring both parties to be demat account holders and KYC compliant; participants will apply to record NDUs with BO ID, PAN, signatures, counterparty details and quantity. The participant verifies securities availability, creates a freeze for debit of specified securities, and the depository captures authorized signatory details and notifies both parties. No transfer, pledge, lending, rematerialisation or dealing is permitted while the freeze exists; cancellation requires joint instructions and unfreeze after the prescribed cooling period. Freeze/unfreeze actions are subject to concurrent audit and NDUs outside the depository are prohibited.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Non-disposal undertakings must be recorded in the depository system, creating a freeze that prevents dealings until joint cancellation.
Depositories must provide a dedicated module to record Non Disposal Undertakings (NDUs), requiring both parties to be demat account holders and KYC compliant; participants will apply to record NDUs with BO ID, PAN, signatures, counterparty details and quantity. The participant verifies securities availability, creates a freeze for debit of specified securities, and the depository captures authorized signatory details and notifies both parties. No transfer, pledge, lending, rematerialisation or dealing is permitted while the freeze exists; cancellation requires joint instructions and unfreeze after the prescribed cooling period. Freeze/unfreeze actions are subject to concurrent audit and NDUs outside the depository are prohibited.
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