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

Q: Answer-Under what conditions can a beneficial owner create a pledge or hypothecation on securities owned th...

Section 12. Pledge or hypothecation of securities held in a depository1 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.

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

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