NSDL -BYELAWS -2000 CH-7 7. SAFEGUARDS TO PROTECT INTEREST OF CLIENTS AND PARTICIPANTS 7.1. CONTINGENCY FUNDS 7.1.1. The Executive Committee may establish different Funds including the Participants Funds and Investor Protection Fund that may be set up under these Bye Laws from time to time. Each Participant will be required to contribute to these funds in the manner and on terms and conditions specified by the Depository under the Business Rules. 7.1.2. The Executive Committee shall specify in the Business Rules the procedure for setting up, operation and administration of these funds and for the purpose for which these funds may be used from time to time. 7.1.3. The Executive Committee shall also specify the entities who are entitled to make claims on the funds, the procedures for making claims on the funds, and the inter se priority of such claims. 7.1.4. *The Funds so established shall be held in trust by the Depository for the benefit of Participants and Clients). *(Amended w.e.f. September 12, 1997. Prior to this amendment, Bye Law 7.1.4 read as follows : The Funds of the Investor Protection Fund shall be operated and administered in accordance with the Deed of Trust of "National Securities Depository Limited Investor Protection Fund Trust" by the Trustees, appointed by the Board of Directors, for the benefit of Clients. 7.1.5. The Funds of the Participants' Fund shall be operated and administered in accordance with the Deed of Trust of "National Securities Depository Limited Participants Fund Trust" by the Trustees, appointed by the Board of Directors, for the benefit of Participants. (Inserted w.e.f. September 12, 1997) 7.2. PROTECTION OF DATA 7.2.1. The Depository shall take necessary steps to protect the transmission and storage of data under the Depository system. The data shall be protected from unauthorised access, manipulation and destruction. The transmission of data shall be in encrypted form and will have to be decrypted at the User's end so as to eliminate the possibility of unauthorised interception of data. The backup of data stored under the Depository system by the Depository and the Participants shall be kept by the Depository and the Participants respectively. The Depository shall ensure sufficient security measures, to prevent the access of unauthorised persons to the data of the Depository operations, as specified in the Business Rules from time to time. 7.3. PROTECTION OF ACCOUNTS OF CLIENTS 7.3.1. The Clients have an option to freeze their accounts with the Participants so as to render it inoperable for a limited period of time. On the Client opting to freeze the account, Participant of such Client shall not effect any debit entry or any such other transaction unless the instruction for freezing the account has been withdrawn or modified by the Client. 7.4. *PROVISION OF DAILY TRANSACTIONS TO THE CLIENTS ON DISPUTE *(Inserted w.e.f. September 12, 1997) 7.4.1. 10 In case of a dispute between a Client and a Participant with whom the Client had maintained his account, and the Participant's unwillingness to give transaction statement to the Client, the Depository shall provide or cause to provide, through the Participant, such details about daily transactions as might be required by the Client.