In order to pledge or hypothecate securities held in a depository, prior approval of hellip;hellip;hellip;. Is compulsorily required?

Section 12 of the Depositories Act - Pledge or hypothecation of securities held in a depository mdash; (1) 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. (2) Every beneficial owner shall give intimation of such pledge or hypothecation to the depository and such depository shall thereupon make entries in its records accordingly. (3) Any entry in the records of a depository under sub-section (2) shall be evidence of a pledge or hypothecation.