12. Pledge or hypothecation of securities held in a depository.—
(1)Subject to such regulations and bye-laws, as may be made in this behalf, a beneficial owner may with the previous approval of the depository create a pledge or hypothecation in respect of a security owned by him through a depository.(2)Every beneficial owner shall give intimation of such pledge or hypothecation to the depository and such depository shall thereupon make entries in its records accordingly.(3)Any entry in the records of a depository under sub-section (2) shall be evidence of a pledge or hypothecation.
