TaxTMI 
TaxTMI 
Recording of Non Disposal Undertaking (NDU) in the Depository System
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....en lenders and borrowers. 2. SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, requires promoters of a company to disclose details of their encumbered shares including NDUs by promoters which are covered under the scope of disclosures of 'Encumbrances'. 3. It has been observed that some shareholders, primarily promoters, enter into non-disposal agreements/ non-dis....
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....le/ transaction type in their system for recording NDUs. 5.2. Both parties to the NDU shall have a demat account with the same depository and be KYC compliant. 5.3.Pursuant to entering the NDU, the Beneficial Owner (BO) along with the other party shall make an application through the participant (where the BO holds his securities) to the depository, for the purpose of recording the NDU transac....
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....nt, the details of authorized signatories as recorded in the demat account of the entity in whose favor such NDU is entered. 5.7.On creation of freeze in the depository system, the depository/ participant of the BO holding shares, shall inform both parties of the NDU regarding creation of freeze under NDU. 5.8.The depositories shall make suitable provisions for capturing the details of company....
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.... 5.12.On unfreeze of shares upon termination/ cancellation of NDU, the depository shall inform both parties of the NDU in the form and manner agreed upon at the time of creating the freeze. The unfreeze shall be effected in the depository system after a cooling period of 2 clear business days but no later than 4 clear business days. 6. The freeze and unfreeze instructions executed by the Partic....