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  • Chapter 2

    • Article 2 Clearing, Settlement and Central Depository Services

      Clearing, Settlement and Central Depository Services include the management, custody and deposit of all securities listed on the Exchange through the Clearing Settlement and Central Depository System, and the connection of the brokers, other participating members and the registrars of securities relating to the listed entities, and the approved securities custodians in the Clearing, Settlement and Central Depository System at the Exchange.

    • Article 3 Functions of the Unit

      The Unit shall perform the following functions:

      1. Organization of the database.
      2. Issuance of Investors' Numbers.
      3. Operation and management of the Clearing, Settlement and Central Depository System.
      4. Updating of particulars in the securities accounts based on the transactions carried out at the Exchange, including deposit, sale, purchase, transfer and withdrawal of deposited securities.
      5. Opening and maintaining securities accounts in the securities central registry, production of securities holders' balances, transfers, mortgages and other third party interests.
      6. Deposit of securities by participating members.
      7. Settlement of securities:
      (a) Transfer of deposited securities ownership as a result of the deals performed at the Exchange, or as an exempted transaction.
      (b) Calculation of amounts due for payment, collection to/from brokers for all deals performed at the Exchange and ensuring their settlement through the Settlement Bank.
      (c) Payment of amounts due to brokers whenever net amounts are due from the Guarantee Contribution Fund.
      (d) Receipt of amounts due from brokers whenever net amounts are due from them to the Guarantee Fund.
      8. Any other functions relating to the clearing, settlement, depository, registration and custody of securities at the Exchange.

    • Article 4 Services Provided to Investors

      The Unit provides the following services:

      1. Organization, issuance and maintenance of the Investor's Number (IN).
      2. Custody of the investor's deposited securities.
      3. Transfer of the ownership of securities electronically from the selling investor's account to the buying investor's account.
      4. Issuance of the letter evidencing ownership of deposited securities, subject to the investor's or any official entities' request.
      5. Issuance of statements of investor's accounts on a regular basis, or as requested by the investor and send such statements to the address recorded in the investor's database.
      6. Approve authorizations to deal in deposited securities.
      7. Amend and update the investor's database in the Clearing, Settlement and Central Depository System at the request of the investor, or whenever required.
      8. Transfer the investor's securities upon his request from the investor's clearing account to the investor's account with the broker.
      9. Transfer the investor's deposited securities upon his request, from his account with one broker to his account with another broker.
      10. Transfer the ownership of the investor's deposited securities to any other person as an exempted transaction.
      11. Freezing or lifting the freeze on deposited securities at the request of the investor, or any competent authority.
      12. Strengthen the relationship between the investor and issuers of securities.

    • Article 5 Service Fees

      1. The Unit shall be responsible for the collection of fees for the Clearing, Settlement and Central Depository Services which are provided by the Exchange, in accordance with Schedule (1) attached to these procedures.
      2. The fees schedule shall constitute an integral part of these procedures and shall be circulated to all brokers, other participating members, investors, depositors and those concerned with the services provided by the Unit.