Securities Services Act, 2004 (Act No. 36 of 2004)

Chapter IV : Custody and Administration of Securities

Functions of central securities depository

33. Functions of central securities depository

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A central securities depository —

(a)must enforce the depository rules;
(b)may amend or suspend the depository rules in terms of section 61;
(c)must supervise compliance by participants with this Act and the depository rules;
(d)may issue directives;
(e)may hold all securities of the same kind deposited with it by a participant collectively in a separate central securities repository;
(f)must maintain a central securities account with due regard to the interests of the participant and its clients;
(g)must notify a participant in writing or as otherwise agreed to by the participant of an entry made in the participant’s central securities account;
(h)must balance and reconcile the aggregate of the central securities accounts with the records of the relevant issuer —
(i)in respect of each kind of certificated security, not less than once every six months;
(ii)in respect of each kind of uncertificated security—
(aa)if that aggregate has not changed, not less than once every month;
(bb)if that aggregate has changed, on the business day after such change;
(i)must administer and maintain a record of uncertificated securities deposited with it;
(j)is entitled to access to the records of uncertificated securities administered and maintained by its participants;
(k)may be appointed as a clearing house by an exchange if the central securities depository is licensed as a clearing house under section 66;
(l)must disclose to participants and issuers the fees and charges required by it for its services;
(m)must on request disclose to—
(i)the registrar information about the securities held by a participant in a central securities account;
(ii)an issuer information about the securities issued by that issuer and held by participants in central securities accounts;
(n)must, if a participant ceases to be a participant, notify the registrar thereof as soon as possible; and

(o)must conduct its business in a prudent manner and with due regard to the rights of participants, clients and issuers.