Section 32 in The Securities And Exchange Board Of India (Depositories And Participants) Regulations, 1996
32. Transfer to be affected only after payment.-
The depository shall satisfy the Board that it has a mechanism in place to ensure that the interest of the persons buying and selling securities held in the depository are adequately protected and shall register the transfer of a security in the name of the transferee only after the depository is satisfied that payment for such transfer has been made.
