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Sec 9, Depositories Act 1996: Securities in Depositories to be in Fungible Form

Section 9 (Securities in depositories to be in fungible form) under Chapter III (Rights and Obligations of Depositories, Participants, Issuers and Beneficial Owners) of the Depositories Act 1996 ⦂‒

❝(1) All securities held by a depository shall be dematerialised and shall be in a fungible form.

(2) Nothing contained in sections 153, 153A, 153B, 187B, 187C and 372 of the Companies Act, 1956 (1 of 1956) shall apply to a depository in respect of securities held by it on behalf of the beneficial owners.❞



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Notes:

The Depositories Act 1996 was amended by the:
- Depositories Related Laws (Amendment) Act, 1997 (Act No. 08 of 1997);
- Securities Laws (Second Amendment) Act, 1999 (Act No. 32 of 1999);
- Securities Laws (Amendment) Act, 2004 (Act No. 01 of 2005);
- Securities Laws (Amendment) Act, 2014 (Act No. 27 of 2014);
- Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016 (Act No. 44 of 2016);
- Finance Act, 2017 (Act No. 07 of 2017).

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