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  • CSD-2.6 CSD-2.6 Provisions Relating to Immobilised Securities

    • CSD-2.6.1

      A company or issuer must, in respect of securities listed or quoted on a licensed exchange or market operator give notice to the public and its security holders of its intention to immobilise the securities.

      Amended: April 2016

    • CSD-2.6.2

      A listed company may from time-to-time after consultation with the licensed exchange prescribe that any security listed or quoted on the licensed exchange, or proposed to be listed or quoted on the licensed exchange or licensed market operator, be immobilised by depositing such security with the central depository.

      Amended: April 2016

    • CSD-2.6.3

      A central depository or its depository participant, as the case may be shall, within the period prescribed in the rules, after the deposit by any person of a certificate and the instruments of transfer in respect thereof, if any, lodge the certificate and instrument with the issuer of the security within two market days.

    • Verification of Certificates and Transfer to a Central Depository

      • CSD-2.6.4

        The issuer shall, on receipt of the certificate and instrument, forthwith, do all such acts and things as may be necessary in order to register the transfer of the security underlying such certificate in the name of the central depository.

      • CSD-2.6.5

        Where an issuer refuses registration of a transfer, it shall serve on the transferor and the central depository, being the transferee, a written notice giving the reasons for such refusal, within 7 days.

      • CSD-2.6.6

        Without prejudice to the right of an issuer to refuse to register a transfer under any written law, the issuer shall refuse registration of the transfer mentioned in rule CSD-2.6.8 if:

        (a) It ascertains that the certificate is not a genuine certificate, or is a certificate that was reported lost or destroyed; or
        (b) In relation to any such security, it discovers that:
        (i) There has been a duplication in the issuance of the certificate representing the security;
        (ii) Such certificate is a certificate issued in excess of the issued share capital of the issuer; or
        (iii) It has been served with an order of a court of competent jurisdiction prohibiting any dealing in respect of the security underlying such certificate.
        Amended: April 2016

      • CSD-2.6.7

        Within seven market days after a transfer is lodged with an issuer or within such longer period as may be allowed in writing by a central depository, the issuer shall complete and deliver the appropriate certificate to the central depository.

        The central depository may refuse entry of the certificates deposited where prima facie:

        (a) There are discrepancies between the securities received and the transfer lodged; or
        (b) The securities are invalid, not genuine.

      • CSD-2.6.7A

        The central depository may refuse entry of the certificates deposited where prima facie:

        (a) There are discrepancies between the securities received and the transfer lodged; or
        (b) The securities are invalid, not genuine.
        Added: April 2016

    • Issuance of Consolidated Statements

      • CSD-2.6.8

        A central depository may require an issuer of deposited securities to issue in the name of the central depository a consolidated statement for such securities.

      • CSD-2.6.9

        The issuer shall, upon receipt of a requirement as mentioned in Paragraph CSD-2.6.8 forthwith take such action as may be appropriate for the issuance of the consolidated statement to the central depository.

        Amended: April 2016

    • Withdrawal of Immobilised Securities

      • CSD-2.6.10

        A depositor may by an application to the central depository withdraw an immobilised security standing to the credit of his securities account.

        Amended: April 2016

      • CSD-2.6.11

        Where an application is made under paragraph CSD-2.6.10 for the withdrawal of an immobilised security which is registered in the name of a central depository or its depository participant, the central depository shall forthwith place such security under suspense with the issuer including:

        (a) The certificate representing the security; and
        (b) The instrument of transfer duly executed by the central depository or its depository participant, as the case may be,

        for the purpose of effecting the transfer in favour of the depositor.

        Amended: July 2016
        Amended: April 2016

      • CSD-2.6.12

        An issuer shall, within two weeks after the certificate and the instrument of transfer in respect thereof are lodged with it:

        (a) Complete and have ready for delivery to the depositor, the appropriate certificate registered in the name of such depositor; and
        (b) Unless otherwise instructed by the depositor, send or deliver the completed certificate to the depositor.

      • CSD-2.6.13

        No person shall trade any security withdrawn from a central depository on a licensed exchange, unless such security is redeposited in a central depository.

    • Central Depository Deemed a Bare Trustee

      • CSD-2.6.14

        A central depository shall, in relation to deposited securities which are registered in its name:

        (a) Not be deemed to have an interest in relation to the book-entry securities which are registered in its name; and
        (b) Be deemed to be a bare trustee.

    • Central Depository and Depository Participant not Liable for Loss

      • CSD-2.6.15

        A central depository and depository participant shall not, except in the case of any willful act, omission, neglect or default on the part of the central depository or its authorised depository participant, be liable for any loss, damage or liability suffered or incurred by any person in respect of dealing in any security.

        Amended: April 2016