Depositories Act,1996
Act No : 22
Section :
Rectification of register on transfer.
`111A. Rectification of register on transfer. (1) In this section, unless the context otherwise requires, " company" means a company other than a company referred to in sub-section (14) of section 111 of this Act. (2) Subject to the provisions of this section, the shares or debentures and any interest therein of a company shall be freely transferable. (3) The Company Law Board may, on an application made by a depository, company, participant or investor or the Securities and Exchange Board of India within two months from the date of transfer of any shares or debentures held by a depository or from the date on which the instrument of transfer or the intimation of transmission was delivered to the company, as the case may be, after such enquiry as it thinks fit, direct any company or depository to rectify register or records if the transfer of the shares of debentures is in contravention of any of the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992. or regulations made thereunder or the Sick Industrial Companies (Special Provisions) Act, 1985. (1 of 1986). (4) The Company Law Board while acting under sub- section (3), may at its discretion make such interim order as to suspend the voting rights before making or completing such enquiry. (5) The provisions of this section shall not restrict the right of a holder of shares or debentures, to transfer such shares or debentures and any person acquiring 9 such shares or debentures shall be entitled to voting rights unless the voting rights have been suspended by an order of the Company Law Board. (6) Notwithstanding anything contained in this section, any further transfer, during the pendency of the application with the Company Law Board, of shares or debentures shall entitle the transferee to voting rights unless the voting rights in respect of such transferee have also been suspended. (7) The provisions of sub-sections (5), (7), (9), (10) and (12) of section 111 shall, so far as may be, apply to the proceedings before the Company Law Board under this section as they apply to the proceedings under that section.'. 10. In section 113, after sub-section (3), the following sub- section shall be inserted, namely:- "(4) Notwithstanding anything contained in sub-section (1), where the securities are dealt with in a depository, the company shall intimate the details of allotment of securities to depository immediately on allotment of such securities.". 11. In section 150, in sub-section (1), in clause (b), the words "distinguishing each share by its number" shall be omitted. 12. In section 152, in sub-section (1), in clause (b), the words "distinguishing each debenture by its number" shall be omitted. 13. After section 152, the following section shall be inserted, namely:-
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