| (2) | A licensed central securities depository— |
| (a) | must constitute, maintain and provide an infrastructure for holding uncertificated securities which enables the making of entries in respect of uncertificated securities; |
| (b) | must constitute, maintain and provide an infrastructure, which infrastructure will include a securities settlement system; |
| (c) | must perform custody and administration in respect of a central securities account; |
| (d) | must issue depository rules in accordance with section 35; |
| (e) | must supervise compliance by participants with the depository rules and depository directives; |
| (f) | must supervise compliance with this Act by its participants, report any non-compliance to the Authority and assist the Authority in enforcing this Act; |
| (h) | must, as soon as it becomes aware, inform the Authority of any matter that it reasonably believes may give rise to, or increase, systemic risk; |
[Section 30(2)(h) substituted by section 290, item 20 of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (i) | may issue depository directives; |
| (j) | may amend or suspend the depository rules in terms of section 71; |
| (k) | must maintain a central securities account with due regard to the interests of the participant and its clients; |
| (l) | may hold all securities of the same kind deposited with it by a participant collectively in a separate central securities account; |
| (m) | must notify a participant in writing or as otherwise agreed of an entry made in the central securities account of the relevant person; |
| (n) | must balance and reconcile the total number and where applicable, the nominal value of each kind of uncertificated securities held on its uncertificated securities register with the records of the relevant issuer— |
| (i) | in respect of certificated securities of the same kind reflected in the central securities account, not less than once every six months; |
| (ii) | in respect of uncertificated securities of the same kind— |
| (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; |
| (o) | must administer and maintain a record of uncertificated securities deposited with it; |
| (p) | is entitled to access to the records of uncertificated securities administered and maintained by its participants to perform the functions for which it is licensed; |
| (q) | may, if the central securities depository is licensed as a clearing house under Chapter V, clear transactions in securities in accordance with its clearing house licence; |
| (r) | must disclose to persons for whom central securities accounts are kept, participants and issuers the fees and charges required by it for its services, and which disclosure must give the specific monetary amount for each service rendered; or if such amount is not pre-determinable, the basis of the calculation; |
| (s) | must on request disclose to— |
| (i) | the Authority information about the securities held in a central securities account; |
| (ii) | an issuer information about the securities issued by that issuer and held in central securities accounts; |
| (t) | must notify the Authority as soon as it becomes aware that a participant will cease or has ceased to be a participant; |
| (u) | subject to sections 5(1)(c) and (2) and 35(4), may enter into an agreement with an external central securities depository for the provision of securities services in the Republic by that external central securities depository; |
| (v) | must establish and maintain effective, efficient and sustainable infrastructure to perform the functions for which it is licensed; |
| (w) | must notify the Authority as soon as it commences an insolvency proceeding or an insolvency proceeding is commenced against it; and |
| (x) | may do all other things that are necessary for, incidental or conducive to the proper operation of a central securities depository and that are not inconsistent with this Act. |
| (a) | The Authority may assume responsibility for one or more of the regulatory or supervisory functions referred to in subsection (2) if the Authority considers it necessary in order to achieve the objects of this Act referred to in section 2. |
| (b) | The Authority must, before assuming responsibility as contemplated in paragraph (a)— |
| (i) | inform the central securities depository of the Authority’s intention to assume responsibility; |
| (ii) | give the central securities depository the reasons for the intended assumption; and |
| (iii) | call upon the central securities depository to show cause within a period specified by the Authority why responsibility should not be assumed by the Authority. |
