Section 16:
Depositories to indemnify loss in certain cases.
(1) Without prejudice to the provisions of any
other law for the time being in force, any loss caused to the beneficial owner due to the negligence of the
depository or the participant, the depository shall indemnify such beneficial owner.
(2) Where the loss due to the negligence of the participant under sub-section (1) is indemnified by the
depository, the depository shall have the right to recover the same from such participant.