Financial Markets Act, 2012 (Act No. 19 of 2012)Chapter III : Preliminary ProvisionsAuthorised users22. Segregation of securities |
| (1) | Every authorised user must deposit securities held for its own account and for or on behalf of its clients in separate securities accounts` or other accounts, maintained by the person who holds or otherwise safeguards such securities on behalf of the authorised user, and must ensure that securities held for or on behalf of its clients are identifiable as belonging to specific persons. |
| (2) |
| (a) | Every authorised user must balance and reconcile the aggregate number of each security reflected in securities accounts maintained by the authorised user, and held by a participant, another third party, or a licensed central securities depository if so authorised by the Authority, on behalf of the authorised user and its clients, with the number of securities held by the participant, other third party or licensed central securities depository, whichever may be applicable, on a daily basis unless otherwise provided for in the exchange rules. |
| (b) | Any reconciling differences must be rectified within the time period prescribed in the exchange rules. |
| (3) | Any securities held by an authorised user for or on behalf of another person must be identifiable as belonging to a specific person and are considered to be trust property as defined in the Financial Institutions (Protection of Funds) Act, and that Act applies to those securities. |