Depositories to indemnify loss in certain cases
Section 16 of the Depositories Act, 1996 deals with depositories to indemnify loss in certain cases. Without prejudice to the provisions of any other law for the time being in force, any loss caused to the beneficial owner due to the negligence of the depository or the participant, the depository shall indemnify such beneficial owner. The Act came into force on 20 Sep 1995.
(1) Without prejudice to the provisions of any other law for the time being in force, any loss caused to the beneficial owner due to the negligence of the depository or the participant, the depository shall indemnify such beneficial owner.
(2) Where the loss due to the negligence of the participant under sub-section (1) is indemnified by the depository, the depository shall have the right to recover the same from such participant.
Section 16, The Depositories Act, 1996 (Act 22 of 1996).
Questions about Section 16
What does Section 16 of the Depositories Act deal with?
Section 16 of the Depositories Act is headed "Depositories to indemnify loss in certain cases". Without prejudice to the provisions of any other law for the time being in force, any loss caused to the beneficial owner due to the negligence of the depository or the participant, the depository shall indemnify such beneficial owner.
How do I find court cases under Section 16 of the Depositories Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Depositories Act 1996 16, section 16 Depositories Act 1996, section 16 of the Depositories Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
When did Section 16 of the Depositories Act come into force?
Section 16 of the Depositories Act, cited as Depositories Act 1996 16, came into force on 20 Sep 1995, having been enacted on 10 Aug 1996. It is in force as at the date shown on this page.
Other sections of this Act
- 19-IB. Recovery of amounts590 words
- 19-IC. Continuance of proceedings382 words
- 26. Power of depositories to make bye-laws377 words
- 2. Definitions349 words
- 19H. Power to adjudicate314 words
- 23A. Appeal to Securities Appellate Tribunal284 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.