https://www.taxtmi.com/caselaws?id=794707 Under the Depositories Act, 1996 and the SEBI Depositories and Participants Regulations, 2018, a depository's continuing supervisory duties over participants include segregation of accounts, regulation of transfers, and compliance with prescribed pledge procedures. On the facts found, the participant misused client securities for its own borrowing, while the depository failed to implement or detect the safeguards expected under the regulatory framework. The arbitral tribunal's view that the depository was liable under Section 16 for negligent acts of its participant was held to be reasoned and plausible, not patently illegal or perverse. The award and the Section 34 judgment were therefore upheld, and no interference under Section 37 was warranted. en-us Thu, 02 Jul 2026 00:00:00 +0530 Fri, 10 Jul 2026 07:39:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794707 Under the Depositories Act, 1996 and the SEBI Depositories and Participants Regulations, 2018, a depository's continuing supervisory duties over participants include segregation of accounts, regulation of transfers, and compliance with prescribed pledge procedures. On the facts found, the participant misused client securities for its own borrowing, while the depository failed to implement or detect the safeguards expected under the regulatory framework. The arbitral tribunal's view that the depository was liable under Section 16 for negligent acts of its participant was held to be reasoned and plausible, not patently illegal or perverse. The award and the Section 34 judgment were therefore upheld, and no interference under Section 37 was warranted. Case-Laws SEBI Thu, 02 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794707