Question

Under what conditions can a beneficial owner create a pledge or hypothecation on securities owned through a depository as per the Depositories Act?

A The beneficial owner can create a pledge or hypothecation without any approval
B The beneficial owner must obtain approval from the Securities and Exchange Board of India (SEBI) to create a pledge or hypothecation
C The beneficial owner can create a pledge or hypothecation only with the approval of the issuer of the security
D The beneficial owner can create a pledge or hypothecation only with the prior approval of the depository
E The beneficial owner is not allowed to create a pledge or hypothecation on securities owned through a depository
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