Power of Board to give directions in certain cases
Section 19 of the Depositories Act, 1996 deals with power of Board to give directions in certain cases. [1] Save as provided in this Act, if after making or causing to be made an enquiry or inspection, the Board is satisfied that it is necessary-- (i) in the interest of investors, or orderly development of securities market; The Act came into force on 20 Sep 1995.
1 [1] Save as provided in this Act, if after making or causing to be made an enquiry or inspection, the Board is satisfied that it is necessary--
(i) in the interest of investors, or orderly development of securities market; or
(ii) to prevent the affairs of any depository or participant being conducted in the manner detrimental to the interests of investors or securities market,
it may issue such directions--
(a) to any depository or participant or any person associated with the securities market; or
(b) to any issuer,
as may be appropriate in the interest of investors or the securities market.
2 [Explanation.--For the removal of doubts, it is hereby declared that power to issue directions under this section shall include and always be deemed to have been included the power to direct any person, who made profit or averted loss by indulging in any transaction or activity in contravention of the provisions of this Act or regulations made thereunder, to disgorge an amount equivalent to the wrongful gain made or loss averted by such contravention.]
3 [(2) Without prejudice to the provisions contained in sub-section (1) and section 19H, the Board may, by order, for reason to be recorded in writing, levy penalty under sections 19A, 19B, 19D, 19E, 19F, 19FA and 19G after holding an inquiry in the prescribed manner.]
Section 19, The Depositories Act, 1996 (Act 22 of 1996).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
- s. 19A Penalty for failure to furnish information, return, etc
- s. 19B Penalty for failure to enter into an agreement
- s. 19D Penalty for delay in dematerialisation or issue of certificate of securities
- s. 19E Penalty for failure to reconcile records
- s. 19F Penalty for failure to comply with directions issued by Board under section 19 of the Act
- s. 19FA Penalty for conduct business in a fair manner
- s. 19G Penalty for contravention where no separate penalty has been provided
- s. 19H Power to adjudicate
Referred to by 7
- s. 19F Penalty for failure to comply with directions issued by Board under section 19 of the Act
- s. 19-I Factors to be taken into account by adjudicating officer
- s. 19-IA Settlement of Administrative and Civil Proceedings
- s. 19-IB Recovery of amounts
- s. 25 Power of Board to make regulations
- Finance Act s. 192 Amendment of section 19
- Securities and Exchange Board of India Act s. 11 Functions of Board
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
-
… (ii) after sub-section (4), the following sub-section shall be inserted, namely:— ""(5) The amount disgorged, pursuant to a direction issued, under section 11B of this Act or section 12A of the Securities Contracts (Regulation) Act, 1956 or section 19 of the Depositories Act, 1996, as the case may be, shall be credited to the Investor Protection and Education Fund established by the Board and such amount shall be utilised by the Board in accordance with the regulations made under this Act."". 4. In section 11B of the principal Act, the following Explanation …
Questions about Section 19
What does Section 19 of the Depositories Act deal with?
Section 19 of the Depositories Act is headed "Power of Board to give directions in certain cases". [1] Save as provided in this Act, if after making or causing to be made an enquiry or inspection, the Board is satisfied that it is necessary-- (i) in the interest of investors, or orderly development of securities market;
How do I find court cases under Section 19 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 19, section 19 Depositories Act 1996, section 19 of the Depositories Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 19 of the Depositories Act, and has it changed?
Its own text turns on section 19A (Penalty for failure to furnish information, return, etc), section 19B (Penalty for failure to enter into an agreement), section 19D (Penalty for delay in dematerialisation or issue of certificate of securities), section 19E (Penalty for failure to reconcile records), and on 4 further provisions, so none of them can safely be read on its own. 7 other provisions in this corpus refer back to it.
When did Section 19 of the Depositories Act come into force?
Section 19 of the Depositories Act, cited as Depositories Act 1996 19, 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 17 Oct 2026. This page is not a substitute for legal advice.