Back Custom print Link Text Only Rich Text Print

  • Securities in Suspense

    • CSD-2.8.10

      A central depository must specify that any deposited security in a securities account as being in suspense in any of the following circumstances:

      (a) Where the securities have not been made fully paid-up;
      (b) Where the central depository has reason to believe or is satisfied that there is a breach of the rules of the central depository, licensed exchange or licensed clearing house;
      (c) Where the central depository has been served with a notice by the CBB that the CBB suspects or has reason to believe that a provision of a related law has been contravened and that securities account of a securities holder is relevant to its investigations regarding the contravention;
      (d) Where the central depository has been served with an order of a court of competent jurisdiction prohibiting any dealing in respect of a deposited security;
      (e) Where the securities or interim certificates are lost and no other securities or certificates are given in lieu; or
      (f) Such other circumstances as may be prescribed by the CBB.
      Amended: April 2016

    • CSD-2.8.11

      In the case of a security that is specified in the securities account as being in suspense pursuant to rule CSD-2.8.10:

      (a) The rights, benefits, powers and privileges of a securities holder; and
      (b) The liabilities, duties and obligations of a securities holder, in respect of, or arising from, the suspension of such a security,

      shall be as prescribed by the suspension order.

      Amended: April 2016

    • CSD-2.8.12

      Where the central depository specifies that any deposited security in a securities account has been suspended, the central depository shall inform the securities account holder, issuer, the relevant depository participants and the relevant licensed exchange.

      Amended: April 2016