Financial Markets Act, 2012 (Act No. 19 of 2012)Chapter IV : Custody and Administration of SecuritiesGeneral provisions relating to custody and administration of securities36. Registration of securities |
| (1) | The Authority may determine that any securities held by a central securities depository in its central securities account must, unless they are bearer instruments, money market securities or recorded in a uncertificated securities register in accordance with section 50 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 Authority. |
[Section 36(1) substituted by section 290, item 23 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)]
| (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. |