• Chapter 4 Chapter 4 Securities

    • Article 10 Deposit of Securities

      1. The securities shall be deposited with the Central Depository by the special Deposit Form No. (3), accompanied by original certificates of the securities to be deposited.
      2. The securities certificates, delivered to the Central Depository, shall be deposited and entered in the securities account determined by the depositor.
      3. The Registrar of securities submitted for deposit shall confirm the validity of such securities by fixing the Registrar's stamp on the securities certificates.
      4. All deposits of securities shall be accompanied by Deposit Form No. (3), provided that such certificates shall be valid and genuine and the member shall guarantee the validity of all securities delivered to the Central Depository for deposit. Preliminary receipt of securities by the Unit and the entry thereof in the account balance, shall be designated by the depositor, and not be considered as a waiver by the Unit of the guarantee of the member to the validity of the deposited securities.
      5. All formalities relating to the deposit of securities, which are delivered to the Central Depository, should be completed within 24 hours from the date of delivery thereof, and all deposit transactions should be reviewed by the Unit, to verify their number and transferability.
      6. Securities delivered for deposit shall be added to the actual balance of the investor's account, unless the following is revealed upon the review of the securities:
      (a) Any difference between the securities delivered and the particulars entered in the attached deposit form.
      (b) Any omission or amendment in the number of securities or the issuer in the deposit form.
      (c) The securities are not valid or genuine, or destroyed.
      (d) Any other reason determined by the Exchange.
      7. The Unit shall be entitled, upon the occurrence of any of the above events, to refuse receipt or delivery of the securities and the rejection decision shall be entered in the Clearing, Settlement and Central Depository System.

    • Article 11 Settlement of Securities

      1. Sold securities shall be deducted from the seller's account, immediately upon execution of the transaction.
      2. The purchaser's securities shall be added to the purchaser's account immediately upon execution of the transaction, and such securities may be resold in the same trading session, upon the addition thereof to the purchaser's account.
      3. Ownership of the purchased securities shall be transferred upon the execution of the transaction and completion of settlement formalities.

    • Article 12 Securities Account Balance

      1. The Unit shall issue semi-annual account statements of the securities depositors accounts and send such statements to their addresses, as stated in the Investor's Information Form No. (1). Depositors shall be entitled to request statements of their accounts, which show the balance of such accounts and any transactions or transfers performed thereof. Such statements shall be requested through an Account Statement Request Form No. (4), issued to one or more issuers.

      The Account Statement Request Form shall be completed and submitted to the Unit during the Exchange's working hours. The Unit shall issue the required account statement within 24 hours from the date of receipt of the request.

    • Article 13 Withdrawal and Freezing of Securities

      1. Deposited securities shall only be withdrawn by the members in their own capacity or on behalf of their clients, upon payment of the service charge stated in Appendix (1).
      2. Deposited securities shall be withdrawn from the Central Depository by deducting them from the securities balance upon completion and submission of the Securities Withdrawal Form No. (7) to the Unit.
      3. Deposited securities may be frozen and/or withdrawn in the following events:
      (a) Upon the request of the investor depositor.
      (b) Death of the investor depositor.
      (c) Mortgage and attachment.
      (d) If required by a competent authority.
      (e) For money laundering combat purposes.
      (f) For any reason as may be occasionally determined by the Exchange.

    • Article 14 Request for Evidencing Ownership of Deposited Securities

      1. The investing depositor may request the issuance of a letter to establish his ownership of the deposited securities through the completion and submission of the Establishment Ownership Request Form No. (10) to the Unit. This applies to companies whose share register is maintained by the Exchange.
      2. Upon approval to issue the letter establishing ownership to the investing depositor, the Unit shall perform the following:
      (a) Transfer the ownership of securities from the tranche allocated for the clearing in the Register to the pending tranche of the Register.
      (b) Issue the letter for the establishment of ownership of the deposited securities within a period of time, not exceeding 36 hours from the date of application.
      3. The Exchange may refuse to issue the letter for the establishment of ownership of deposited securities for any appropriate reason, or may postpone the issuance of such a letter.
      4. Securities for which an establishment of ownership letter has been issued should not be disposed of by sale or transfer.
      5. The listed entity should not issue any ownership certificate for securities kept under the clearance tranche in the electronic register.

    • Article 15 Access to the Shares Register in the Central Depository System

      1. Only authorized staff of the Exchange shall be permitted access to the share register in the Central Depository System to the extent of responsibility and authority delegated to them.
      2. Listed entities may only peruse records of securities pertaining to them on electronic screens; however, they should not make any changes to these records.
      3. Listed entities may obtain extracts from their shares register. Other related parties may request such extracts upon payment of the amount fixed by the Exchange in this respect.