Accounts Notes: AUDIT OF DEPOSITORIES

Friday 25 March 2011

AUDIT OF DEPOSITORIES

 To maintain following records and documents :
(i) Record of sec. Dematerialized/re-materialized.
(ii) Transferor, transferee and date of transfer.
(iii) Register of beneficial owner (B.O.).
(iv) Instruction received.
(v) Approval notice, cancellation or pledge.
(vi) Details of participants.
(vii) Details of securities eligible for DEMAT.
(viii) Other specified by board.
 Intimate SEBI the place of maintaining records and documents.
 Preserve for minimum 5 years.
 If kept electronically, ensure integrity of system and precaution.
 SEBI may appoint one/more inspecting officer for following purposes :
(i) Ensure that books of accounts maintained by depository, participants, or agents.
(ii) Look into complaints.
(iii) Whether provision of Act, Bye-Laws, etc. being complied with.
(iv) Whether system, procedures followed.
(v) Affairs conducted in interest of investors or securities market.
 Every issuer shall submit on a quarter basis, the details of changes in share capital during the quarter to the concerned stock exchange. It should be audited by a qualified Chartered Accountant or a practicing Company Secretary. It is submitted for the purpose of reconciliation of total issued capital, listed capital and capital held by the depositories in DEMAT form. It should also contain an updated status of register of members of issuer. Further, the issuer shall immediately bring to the notice of the depositories and the stock exchanges, any differences observed in its issued, listed and the capital held by depositories in dematerialized form.