55. A recognised depository shall have a sound risk management system and infrastructure for comprehensively managing risks. =============... ... ...

54. A recognised depository shall allow any participant to withdraw, or transfer its account, if the request for such withdrawal or transfer is in accordance with conditions stipulated in the bye-laws of the depository. =============... ... ...

53. A recognised depository shall take adequate measures including insurance to protect the interests of the beneficial owners against risks likely to be incurred on account of its activities as a recognised depository. =============... ... ...

52. A recognised depository shall have a mechanism in place to ensure that the interests of the persons buying and selling securities held in the depository are adequately protected. =============... ... ...

51. A recognised depository shall maintain continuous electronic means of communication with all its participants, issuers or issuers' agents, clearing houses and clearing corporations of the stock exchanges and with other depositories. =============... ... ...

50. A recognised depository shall cause an inspection of its controls, systems, procedures and safeguards to be carried out annually and forward a copy of the report to the Authority. =============... ... ...

49. (1) A recognised depository shall ensure that the integrity of the automatic data processing systems is maintained at all times. (2) A recognised depository shall take all precautions necessary to ensure that the records are not lost, destroyed or tampered with and in the event of loss or destruction, ensure that sufficient back up of records is available at all times at a different place. =============... ... ...

48. A recognised depository shall have adequate mechanisms for the purposes of reviewing, monitoring and evaluating the depository's controls systems, procedures and safeguards. =============... ... ...

47. A recognised depository shall have systems and procedures which will enable it to co-ordinate with the issuer or its agent, and the participants, to reconcile the records of ownership of securities on a daily basis. =============... ... ...

46. (1) Either on the issuer or on the investor exercising an option to hold his securities with a recognised depository in dematerialised form, the issuer shall enter into an agreement with the depository to enable the investor to dematerialise the securities: Provided that no agreement shall be required to be entered into where the depository itself is an issuer of securities: Provided further that no such agreement shall be required to be entered into where the Central Government of... ... ...

Regulation 45 requires a recognised depository to enter into an agreement with one or more participants acting as its agents. The arrangement establishes the required agency relationship between the depository and its participant or participants.

Securities defined under the SCRA and other eligible instruments under the IFSCA Act may be held in dematerialised form in a recognised depository.

Priority of clearing corporation recovery applies to dues arising from clearing members' clearing and settlement functions. A recognised clearing corporation may recover these dues from the clearing members' collateral, deposits and assets, with priority over every other liability of or claim against the clearing members.

Recognised clearing corporations handling physically settled commodity derivatives must ensure a financial guarantee for trade settlement, including good delivery. Good delivery requires goods to be capable of transferring title and to conform to the quality and quantity specifications of the relevant exchange contract.

Payment and settlement must follow netting or gross procedures contained in approved bye-laws of recognised stock exchanges and recognised clearing corporations. Such settlements are final, irrevocable and binding once the payable money, securities or other transaction obligations are determined, even without actual payment or delivery. Following finality, rights to appropriate contributed collateral, deposits and margins for settlement or other obligations take priority over other liabilities or claims against trading members, clearing members or clients.

Recognised stock exchanges and recognised clearing corporations must obtain prior approval of the Authority before making bye-laws governing contracts, clearing, and settlement. Amendments to such bye-laws also require prior approval. The same approval requirement applies to amendments of memoranda of association, articles of association, and other constitutional documents where they concern matters under the Securities Contracts (Regulation) Act or these regulations.

Recognised stock exchanges must preserve prescribed books, account documents, and further specified records in electronic retrieval form for at least twenty years. Recognised clearing corporations are subject to the same retention format and period for governance minutes, clearing member and settlement account details, transaction and deposit records, margin information, accounting books, bank statements, and further specified records.

Equal, fair and transparent access to clearing and settlement services requires recognised clearing corporations to maintain and publish a non-discriminatory access framework. The framework must state the basis for shareholder stock exchange access and the requirements non-shareholder stock exchanges must satisfy to obtain access. Recognised stock exchanges and clearing corporations must provide equal, unrestricted and transparent access to all persons without favouring associates or related entities.

Utilization of profits and investments by a recognised stock exchange or recognised clearing corporation must comply with norms specified by the Authority. Deployment of funds generally requires prior approval. Treasury investments are exempt where they comply with a governing-board-approved investment policy. Activities involving fund deployment or otherwise unrelated or not incidental to market infrastructure functions may be undertaken through a separate legal entity, subject to the Authority's approval.

Recognised stock exchanges and recognised clearing corporations must maintain a Business Continuity Plan and a Disaster Recovery Site. The arrangements must preserve data and transaction integrity in the manner specified by the Authority from time to time.