(1) Where an application for the grant of certificate of registration under regulation 32 does not satisfy the requirements specified in regulation 35, the Board shall reject the application after giving the applicant an opportunity of being heard.
(2) The decision of the Board to reject the application shall be communicated to the applicant in writing within thirty days of such decision, stating therein the grounds on which the application has been rejected.
CHAPTER VII RIGHTS AND OBLIGATIONS OF DEPOSITORIES, PARTICIPANTS, ISSUERS, MANNER OF SURRENDER OF CERTIFICATE OF SECURITY AND CREATION OF PLEDGE OR HYPOTHECATION Rights and obligations of depositories, etc.
40. The depositories, participants, issuers, and issuers’ agents, in addition to the rights and obligations laid down in the Depositories Act and the bye-laws shall have the rights and obligations arising from the agreements entered into by them.
Depository to declare specific securities eligible
41. Every depository shall, in its bye-laws, state the specific securities which are eligible for being held in dematerialised form in the depository.
Security eligible for dematerialisation 22
42. The following securities shall be eligible for being held in dematerialised form in a depository :—
(a) shares, scrips, stocks, bonds, debentures, debenture stock , Indian Depository Receipts or other marketable securities of a like nature in or of any incorporated company or other body corporate;
(b) units of mutual funds, rights under collective investment schemes and venture capital funds, commercial paper, certificates of deposit, securitised debt, money market instruments, Government securities and unlisted securities shall also be similarly eligible for being held in dematerialised form in a depository;
(c) any other security as may be specified by the Board from time to time, by way of a notification in the Official Gazette and subject to such conditions as it may deem fit to impose.
Agreement between depository and issuer