Securities Services Act, 2004 (Act No. 36 of 2004)Chapter IV : Custody and Administration of SecuritiesGeneral provisions relating to custody and administration of securities40. Registration of securities |
| (1) | The registrar may direct that any securities held by a central securities depository must, unless they are bearer instruments, money market instruments or recorded in a subregister in accordance with section 91A of the Companies Act and the depository rules, be registered in the name of that central securities depository or its wholly owned subsidiary, as defined in section 1 of the Companies Act and approved by the registrar. |
(2)
| (a) | No central securities depository or participant may become the owner, co-owner, holder, pledgee or cessionary for the purpose of securing a debt, of securities merely because of— |
| (i) | a deposit of securities; or |
| (ii) | the registration in its name of— |
| (aa) | securities; |
| (bb) | limited rights in securities; |
| (cc) | other rights in securities; |
| (dd) | benefits in respect of securities; or |
| (ee) | benefits accruing to securities. |
| (b) | Paragraph (a) also applies to a wholly owned subsidiary as defined in section 1 of the Companies Act of a central securities depository or participant. |