Central Depositories Act

5A. Rules of a central depository

Edition: 2023-12-11 · In force

(1)A central depository shall make CDS Rules providing for—

(a)deposit, registration and transfer of securities;

(b)settlement of transactions involving securities;

(c)the proper regulation and efficient operation of the clearing facility which it operates;

(d)its default process;

(e)the establishment of a settlement guarantee fund;

(f)the qualifications for appointment of central depository agents;

(g)the proper regulation and supervision of its agents;

(h)the exclusion from participation as central depository agents of persons who are not fit and proper;

(i)the expulsion, suspension or disciplining of a central depository agent;

(j)the carrying on of the business of a central depository, having regard to the interests and protection of the investing public; and

(k)such other matters as the Authority may direct.

(2)A central depository shall submit the rules made under subsection (1) to the Authority for approval.

(3)A licensed central depository shall not amend, vary or rescind its rules without prior approval of the Authority.[Act No. 38 of 2011, s. 7.]