3. Certificate of commencement of business by depositories.—(1) No depository shall act as a
depository unless it obtains a certificate of commencement of business from the Board.
(2) A certificate granted under sub-section (1) shall be in such form as may be specified by the
regulations.
(3) The Board shall not grant a certificate under sub-section (1) unless it is satisfied that the
depository has adequate systems and safeguards to prevent manipulation of records and transactions:
Provided that no certificate shall be refused under this section unless the depository concerned has
been given a reasonable opportunity of being heard.
