Code of Conduct for Depositories 

(Part D of Third Schedule of SEBI (D & P) regulations, 2018) 

A Depository shall: 

(a) always abide by the provisions of the Act, Depositories Act, 1996, any Rules or  Regulations framed thereunder, circulars, guidelines and any other directions  issued by the Board from time to time. 

(b) adopt appropriate due diligence measures. 

(c) take effective measures to ensure implementation of proper risk management  framework and good governance practices.

(d) take appropriate measures towards investor protection and education of  investors. 

(e) treat all its applicants/members in a fair and transparent manner. (f) promptly inform the Board of violations of the provisions of the Act, the  Depositories Act, 1996, rules, regulations, circulars, guidelines or any other  directions by any of its issuer or issuer’s agent. 

(g) take a proactive and responsible attitude towards safeguarding the interests of  investors, integrity of depository’s systems and the securities market. (h) endeavor for introduction of best business practices amongst itself and its  members. 

(i) act in utmost good faith and shall avoid conflict of interest in the conduct of its  functions. 

(j) not indulge in unfair competition, which is likely to harm the interests of any  other Depository, their participants or investors or is likely to place them in a  disadvantageous position while competing for or executing any assignment. 

(k) segregate roles and responsibilities of key management personnel within the  depository including 

  1. Clearly mapping legal and regulatory duties to the concerned position b. Defining delegation of powers to each position 
  2. Assigning regulatory, risk management and compliance aspects to  business and support teams 

(l) be responsible for the acts or omissions of its employees in respect of the  conduct of its business. 

(m)monitor the compliance of the rules and regulations by the participants and shall  further ensure that their conduct is in a manner that will safeguard the interest of  investors and the securities market.