Monday December 5 2016

News Source: Global Exchanges

Focus: Trading Rules

Type: General




The Central Depository and Settlement Corporation (CDSC) has published revised Central Depository Rules and Operation Procedures.

The Central Depositories Rules were made in exercise of the powers conferred by Section 4 of the Central Depositories Act 2000. The rules are in three parts:

Preliminary

This section contains the citations and interpretation of the different terms used in the Rules.

General

This part contains the following:

  • Rules relating to appointment of Central Depository Agents (CDAs);
  • The structure of central depository accounts, opening and maintenance of securities accounts and transfer of central depository accounts;
  • Deposit of certificates by CDAs;
  • Prohibition against variation of contract by the CDA and recourse available when CDAs refuse to act;
  • Private transactions;
  • Securities account;
  • Dispute resolution; and
  • The Business Conduct Committee

Rules for securities, other than debt securities

The following are included in this part:

  • Duty to notify securities holder on prescription as an eligible security;
  • Deposit of securities into the central depository during Initial Public Offers (IPOs);
  • Jumbo certificates and withdrawal of securities;
  • Suspension of securities;
  • Mortgaging and pledging of securities;
  • Settlement of trades;
  • Rules relating to Issuers; and
  • De-listing of immobilised securities

The Operational Procedures of the CDSC describes the procedures to be applied by CDAs in performing the functions relating to CDSC. It touches on all the procedures that constitute the daily activities carried out in a central depository.

The procedures include:

  • Securities account opening;
  • Securities account maintenance;
  • Deposits i.e. immobilisation process;
  • Trades i.e. transaction capture, amendments to trade information etc.;
  • Clearing and settlement which includes securities and funds management;
  • Withdrawal of immobilised securities;
  • Transfer of accounts;
  • Private transactions;
  • Pledges & Foreclosures;
  • Public offers;
  • Bonus issues;
  • Rights issues;
  • Dividends/corporate actions;
  • Statements of securities accounts;
  • Fees and surcharges;
  • Subdivision (split) of shares; and
  • Redemption of securities.

Click on the above link for further details.