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.