Regulation 29 - Segregation of functions - Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018

1 [Segregation of functions 29 (1) Every depository shall identify and segregate its functions into the following verticals: (a) Critical Operations; (b) Regulatory, Compliance, Risk Management and Investor Grievances; and (c) Other functions including business development. (2) The functions of the verticals under sub-regulation (1) above are provided at Fourth Schedule of these regulations. (3) The functions under the verticals as provided at clause (a) and (b) of sub-regulation 1 shall be given higher priority by the depository over the functions under the vertical as provided at clause (c) of sub-regulation (1). (4) Every depository shall periodically and objectively assess the adequacy of resources allocated to the first two verticals as specified in clause (a) and (b) of sub-regulation (1). (5) Every depository shall adopt a Chinese Wall policy which separates the functions under vertical as provided at clause (b) of sub-regulation (1) from the functions of other verticals. (6) The employees referred to in sub-regulation (5) shall not communicate any information concerning their activity to any one in other verticals and may be physically segregated from employees in other verticals including with respect to access controls: Provided that in exceptional circumstances, employees from other verticals may be given confidential information on need to know basis, under intimation to the Compliance Officer. ] ************** NOTES:- 1. Substituted vide Notification No. SEBI/LAD-NRO/GN/2023/125 dated 28-02-2023 (shall come into force on the one hundred and eightieth day from the date of their publication in the Official Gazette) before it was read as, Segregation of regulatory departments 29. The depository shall segregate its regulatory departments from other departments in the manner specified in Fourth Schedule of these regulations.