"Depository is not permitted to carry out such activities which are not incidental to its activity as a depository." Comment.

According to the Regulation 7 of the SEBI (Depositories and Participants) Regulations, 2018, the depository shall not carry on any activity whether involving deployment of funds or otherwise without prior approval of the SEBI. However prior approval of the SEBI shall not be required in case of treasury investments if such investments are as per the investment policy approved by the governing board of depository. However, a depository may carry out such activity not incidental to its activities as a depository, whether involving deployment of funds or otherwise, as may be assigned to the depository by the Central Government or by a regulator in the financial sector, through the establishment of Strategic Business Unit(s) specific to each activity with the prior approval of the SEBI and subject to such conditions as may be prescribed by the SEBI, including transfer of such activity to a separate company within such time as may be specified by the SEBI having regard to the matters which are relevant to the efficient and orderly function of the Depository.