When was the Depositories Act enacted?

The Depositories Act, 1996, was enacted on August 10, 1996, to establish a framework for the electronic maintenance and transfer of securities in a dematerialized form. The Act aimed to eliminate the challenges associated with physical securities, such as forgery, theft, and cumbersome transfer processes. It also laid the foundation for the establishment of depositories in India, such as the National Securities Depository Limited and the Central Depository Services Limited, ensuring efficiency, transparency, and security in the Indian securities market.