Rules and Procedures

Central Depositories Rules 2004

The Central Depositories Rules were made in exercise of the powers conferred by Section 4 of the Central Depositories Act 2000. These rules are in 3 parts:

  1. Preliminary
    It contains the citations and interpretation of the different terms used in the Rules.
  2. 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
  • The Business Conduct Committee

3. Rules for securities, other than debt securities
The following is 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
  • De-listing of immobilized securities

Operational Procedures of the CDSC Ltd

This Procedures manual 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. These procedures include:

  • Securities account opening
  • Securities account maintenance
  • Deposits i.e. immobilization process
  • Trades i.e. transaction capture, amendments to trade information etc.
  • Clearing and settlement which includes securities and funds management
  • Withdrawal of immobilized 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

 

Last modified on Tuesday, 29 November 2016 12:35