CBB Volume 6: Contents

Central Bank of Bahrain Volume 6—Capital Markets
Part A
Institutions
CSD — Clearing, Settlement and Depository
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  • CSD-2.8 Entries in Securities Accounts

    • CSD-2.8.1

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

      (a) In the case of a securities account established and maintained directly by a central depository, be deemed to have been made by, or with the authority of, the central depository; and
      (b) In the case of a securities account established through and maintained by a depository participant on behalf of a central depository, be deemed to have been made by, or with the authority of, the depository participant.
      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 account 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 person, the identity of the person making the entry.

    • Record of an Entry Prima Facie Evidence

      • CSD-2.8.3

        A record of an entry in a securities account in respect of a dealing in deposited securities 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 issuer of any deposited security may, in the manner and period prescribed by the rules of the central depository, request the central depository to issue him a record of the securities holders holding the aforementioned securities under their securities accounts, as at the date of the notice or such other date as may be specified in the notice.

      • CSD-2.8.5

        The record of securities holders referred to in Paragraph CSD-2.8.4 shall contain the names, addresses, number of the deposited securities 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 depository shall include in its Business Rules the rules and procedures in respect of the pledge of securities, including the acceptance of a pledge by a beneficial owner 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 person ("pledgee"), a central depository or a depository participant, with or through whom the securities account 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 account.

        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 security has been discharged or released, the central depository or its depository participant, 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 account of the pledger.

        Amended: April 2016

    • Securities in Suspense

      • CSD-2.8.10

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

        (a) Where the securities have not been made fully paid-up;
        (b) Where the central depository has reason to believe or is satisfied that there is a breach of the rules of the central depository, licensed exchange or licensed clearing house;
        (c) Where the central depository 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 account of a securities holder is relevant to its investigations regarding the contravention;
        (d) Where the central depository has been served with an order of a court of competent jurisdiction prohibiting any dealing in respect of a deposited security;
        (e) Where the securities or interim certificates are lost and no other securities 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 security that is specified in the securities account 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 security,

        shall be as prescribed by the suspension order.

        Amended: April 2016

      • CSD-2.8.12

        Where the central depository specifies that any deposited security in a securities account has been suspended, the central depository shall inform the securities account holder, issuer, the relevant depository participants and the relevant licensed exchange.

        Amended: April 2016

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