law: Depositories Act, 1996 
  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.