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      Question

      Under Section 3 of Depositories Act, no depository

      shall act as a depository unless it obtains a
      A Certificate of Registration from the Central Government Correct Answer Incorrect Answer
      B Certification of Registration from the Board Correct Answer Incorrect Answer
      C Certificate of commencement -of business from the Board Correct Answer Incorrect Answer
      D Certificate of commencement of business the Central Government Correct Answer Incorrect Answer
      E Certification of Registration from Stock Exchange Correct Answer Incorrect Answer

      Solution

      Section 3 - Certificate of commencement of business by depositories.β€”(1) No depository shall act as a depository unless it obtains a certificate of commencement of business from the Board . (2) A certificate granted under sub-section (1) shall be in such form as may be specified by the regulations. (3) The Board shall not grant a certificate under sub-section (1) unless it is satisfied that the depository has adequate systems and safeguards to prevent manipulation of records and transactions : Provided that no certificate shall be refused under this section unless the depository concerned has been given a reasonable opportunity of being heard .

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