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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

NSDL issues circular regarding Amendments to NSDL Bye Laws and Business Rules pursuant to SEBI Circular regarding creation/Invocation of pledge of securities through depository system

16-Sep-2026 | NSDL/POLICY/2026/0133

NSDL has issued circular regarding Amendments to NSDL Bye Laws and Business Rules pursuant to SEBI Circular regarding creation/Invocation of pledge of securities through depository system Key highlights are as follows: 1. Amendment has been made in bye laws 9.9.12 or 9.9.16, further, Form 28, Form 22, Form 43, etc also been amended. 2. Under Bye Law 9.9.12, the existing provision has been substituted to require the Depository, upon receiving a request under Bye Law 9.9.11, to invoke the pledge and notify both the pledgor and pledgee confirming the invocation of the pledge and recording of the pledgee as the “beneficial owner” in accordance with Regulation 79(8) of the DP Regulations. The Depository shall thereafter amend its records accordingly and intimate the Participants of both the pledgor and pledgee. 3. a proviso has been provided under bye laws 9.9.16 No transfer of security in respect of which a notice or entry of pledge or hypothecation is in force shall be effected by a Participant without the prior concurrence of the pledgee or the hypothecatee as the case may be however All matters relating to Pledge/Hypothecation/Margin Pledge/Margin Re-pledge, including their creation, closure, invocation and confirmation, as applicable, shall be governed by and carried out in accordance with the NSDL Business Rules, as amended from time to time, and applicable laws, regulations, circulars, guidelines and directions issued by SEBI/NSDL. For more information, please refer the attached pdf.

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