Question

In order to pledge or hypothecate securities held in a depository, is prior approval of Depository required?

Q: Answer-&lt;p&gt;In order to pledge or hypothecate securities held in a depository, is prior approval of Dep...

Section 12 of Depository Act - Pledge or hypothecation of securities held in a depositorymdash1 Subject to such regulations and bye-laws, as may be made in this behalf, a beneficial owner may with the previous approval of the depository create a pledge or hypothecation in respect of a security owned by him through a depository. 2 Every beneficial owner shall give intimation of such pledge or hypothecation to the depository and such depository shall thereupon make entries in its records accordingly. 3 Any entry in the records of a depository under sub-section 2 shall be evidence of a pledge or hypothecation.