CBB Volume 6: Contents

Central Bank of Bahrain Volume 6—Capital Markets
Part A
Institutions
CSD — Clearing, Settlement and Depository
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Location: Central Bank of Bahrain Volume 6—Capital Markets > Part A > Institutions > CSD — Clearing, Settlement and Depository > CSD-2 Clearing House and Central Depository Function > CSD-2.8 Entries in Securities Accounts > CSD-2.8.1
  • CSD-2.8 Entries in Securities Accounts

    • CSD-2.8.1

      An entry in a securities accountG in respect of a dealing, shall:

      (a) In the case of a securities accountG established and maintained directly by a central depositoryG , be deemed to have been made by, or with the authority of, the central depositoryG ; and
      (b) In the case of a securities accountG established through and maintained by a depository participantG on behalf of a central depositoryG , be deemed to have been made by, or with the authority of, the depository participantG .
      Amended: April 2016

    • Entries in Securities Accounts to Specify Date, Time and Person Making the Entries

      • CSD-2.8.2

        An entry in a securities accountG made under the rule CSD-2.8.1 shall specify the date and time of the making of such entry and, in the case of an entry made by a personG , the identity of the personG making the entry.

    • Record of an Entry Prima Facie Evidence

      • CSD-2.8.3

        A recordG of an entry in a securities accountG in respect of a dealingG in deposited securitiesG shall be prima facie evidence of the truth of the matters so recorded.

    • Record of Securities Holders Beneficial Owner to be Issued to an Issuer on Request

      • CSD-2.8.4

        An issuerG of any deposited securityG may, in the manner and period prescribed by the rules of the central depositoryG , request the central depositoryG to issue him a recordG of the securities holders holding the aforementioned securitiesG under their securities accountsG , as at the date of the notice or such other date as may be specified in the notice.

      • CSD-2.8.5

        The recordG of securities holders referred to in Paragraph CSD-2.8.4 shall contain the names, addresses, number of the deposited securitiesG acquired by each securities holder and such other information and particulars of the securities holders as may be required and prescribed by the rules of the depository.

        Amended: April 2016

    • Charging or Pledging of Securities

      • CSD-2.8.6

        The central depositoryG shall include in its Business Rules the rules and procedures in respect of the pledge of securitiesG , including the acceptance of a pledge by a beneficial ownerG and the responsibilities of the pledger in respect of effecting the pledge.

        Amended: April 2016

      • CSD-2.8.7

        Where a deposited security is charged or pledged by a securities holder (hereinafter referred to as "pledger") in favour of any personG ("pledgee"), a central depositoryG or a depository participantG , with or through whom the securities accountG of the securities holder is maintained shall, on a request on the prescribed form made by the securities holder or pledger, create a pledge on the relevant securities within the securities accountG .

        Amended: April 2016

      • CSD-2.8.8

        Where a request is made by a securities holder as provided under Paragraph CSD-2.8.7, such request shall be supported by documents evidencing such charge or pledge.

        Amended: April 2016

      • CSD-2.8.9

        Where a pledge over a deposited securityG has been discharged or released, the central depositoryG or its depository participantG , as the case may be, shall, upon receipt of a notice in writing from the pledgee confirming the same, release the pledge within the securities accountG of the pledger.

        Amended: April 2016

    • Securities in Suspense

      • CSD-2.8.10

        A central depositoryG must specify that any deposited security in a securities accountG as being in suspense in any of the following circumstances:

        (a) Where the securitiesG have not been made fully paid-up;
        (b) Where the central depositoryG has reason to believe or is satisfied that there is a breach of the rules of the central depositoryG , licensed exchangeG or licensed clearing houseG ;
        (c) Where the central depositoryG has been served with a notice by the CBB that the CBB suspects or has reason to believe that a provision of a related law has been contravened and that securities accountG of a securities holder is relevant to its investigations regarding the contravention;
        (d) Where the central depositoryG has been served with an order of a court of competent jurisdiction prohibiting any dealing in respect of a deposited securityG ;
        (e) Where the securitiesG or interim certificates are lost and no other securitiesG or certificates are given in lieu; or
        (f) Such other circumstances as may be prescribed by the CBB.
        Amended: April 2016

      • CSD-2.8.11

        In the case of a securityG that is specified in the securities accountG as being in suspense pursuant to rule CSD-2.8.10:

        (a) The rights, benefits, powers and privileges of a securities holder; and
        (b) The liabilities, duties and obligations of a securities holder, in respect of, or arising from, the suspension of such a securityG ,

        shall be as prescribed by the suspension order.

        Amended: April 2016

      • CSD-2.8.12

        Where the central depositoryG specifies that any deposited security in a securities accountG has been suspended, the central depositoryG shall inform the securities accountG holder, issuer, the relevant depository participantsG and the relevant licensed exchangeG .

        Amended: April 2016

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