Question
Who will indemnify the beneficial owner in case of
negligence caused by the depository or participant?Solution
Section 16 of Depositories Act Depositories to indemnify loss in certain cases—(1) Without prejudice to the provisions of any other law for the time being in force, any loss caused to the beneficial owner due to the negligence of the depository or the participant, the depository shall indemnify such beneficial owner. (2) Where the loss due to the negligence of the participant under sub-section (1) is indemnified by the depository, the depository shall have the right to recover the same from such participant.
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