Schedule - IV - Measures to ensure autonomy of regulatory departments - Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018

1 [FOURTH SCHEDULE Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 See regulation 2(k)(iii) Core functions of the depository 1. For depositories the core and critical functions shall include but not limited to: a. Vertical 1: Critical Operations i. Provision for dematerialization of securities including holding and transfer of such securities; ii. Record keeping of information related to dematerialized securities; iii. IT infrastructure for core and critical functions; iv. Business continuity plan and disaster recovery operations; v. Cyber Security and cyber resilience framework. b. Vertical 2: Regulatory, compliance, risk management and investor grievances. i. Risk management; ii. Surveillance and investigation; iii. Participant registration; iv. Issuer or securities admission; v. Compliance; vi. Inspection; vii. Enforcement; viii. Arbitration and grievance redressal mechanism; ix. Investor protection and services. c. Vertical 3: Other Functions including Business Development. i. Sales; ii. Marketing; iii. Product Development; iv. Finance. ] **************** 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, FOURTH SCHEDULE Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 [See regulation 29] MEASUSRES TO ENSURE AUTONOMY OF REGULATORY DEPARTMENTS In order to ensure the segregation of regulatory departments, every depository shall adopt a Chinese Wall policy which separates the regulatory departments of the depository from the other departments. The employees in the regulatory departments shall not communicate any information concerning regulatory activity to any one in other departments. The employees in regulatory areas may be physically segregated from employees in other departments including with respect to access controls. In exceptional circumstances employees from other departments may be given confidential information on need to know basis, under intimation to the Compliance Officer. For the purposes of the above, regulatory areas shall mean those departments of a depository which are mandated by law or those entrusted with regulatory powers and duties, and may include departments performing the following functions: (i) risk management; (ii) surveillance; (iii) participant registration; (iv) Issuer/ securities admission; (v) compliance; (vi) inspection; (vii) enforcement; (viii) arbitration; (ix) investor protection; (x) investor services.