Section 2

to establish and operate a system for the central handling of securities, whether or not listed on any stock exchange,—

whereby all such securities are deposited with and held in custody by, or registered in the name of, the company or its nominee company for the depositors and dealings in respect of those securities are effected by means of entries in securities accounts without the physical delivery of scrips; or

to provide other facilities and services incidental thereto;

―charge‖ includes a mortgage;

―Commission‖ means the Securities Commission established under the Securities Commission Act 1993 [Act 498];

―computer system‖, in relation to a central depository, means the computer system established by a central depository forming part of the system for the central handling of securities which inter alia consists of—

the central equipment comprising hardware, and software associated with that hardware, located at the premises of the central depository; and

the terminals located at the premises of the users;

12 Laws of Malaysia ACT 453

―dealer‖ has the same meaning as is assigned to that expression under subsection 2(1) of the *Securities Industry Act 1983 [Act 280];

―dealing‖, in relation to any deposited security, includes the charging or pledging of the deposited security by a depositor;

―debt securities‖ means debentures, bonds, notes, or other similar instrument representing or evidencing indebtedness, whether secured or otherwise;

―deposited security‖ means a security standing to the credit of a securities account and includes a security in a securities account that is in suspense;

―depositor‖ means a holder of a securities account;

―exchange holding company‖ has the same meaning as is assigned to that expression under subsection 2(1) of the *Securities Industry

Act 1983;

―information‖ includes data recorded in a form which can be processed by equipment operating automatically in response to instructions given for a particular purpose;

―issuer‖, in relation to any deposited security, means the public company, corporation, government, or the body, corporate or unincorporate, which issued the security, and includes any person performing the functions of a registrar or an issuing house for such issuer in respect of such security;

―listed deposited security‖ means a deposited security quoted on an official list of a stock exchange;

―Minister‖ means the Minister of Finance;

*NOTE—This Act has since been repealed by Capital Market and Services Act 2007 [Act 671]

which comes into operation on 28 September 2007 except Division 2 of Part VI which comes into operation on 1 April 2010–see subsection 381(2) Act 671, P.U. (B) 342/2007 and P.U. (B)

143/2010.

Securities Industry (Central Depositories) 13

―nominee company‖, in relation to a central depository, means a company appointed by the central depository for the purpose of holding any deposited security;

―non-bearer security‖ means a security other than a bearer security;

―official list‖, in relation to a stock exchange, means a list specifying all securities which have been admitted for quotation on the stock exchange;

―participating organization‖ has the same meaning as is assigned to that expression under subsection 2(1) of the

*Securities

Industry Act 1983;

―record‖ includes, in addition to a record in writing—

any photograph;

any disc, tape, sound-track or other device in which sounds or other data (not being visual images) are embodied so as to be capable (with or without the aid of some other instrument) of being reproduced therefrom;

and

any film, tape or other device in which visual images are embodied so as to be capable (with or without the aid of some other instrument) of being reproduced therefrom, and any reference to a copy of a record includes—

in the case of a record falling within paragraph (b)

but not paragraph (c) of this definition, a transcript of the sounds or other data embodied therein;

*NOTE—This Act has since been repealed by Capital Market and Services Act 2007 [Act 671]

which comes into operation on 28 September 2007 except Division 2 of Part VI which comes into operation on 1 April 2010–see subsection 381(2) Act 671, P.U. (B) 342/2007 and P.U. (B)

143/2010.

14 Laws of Malaysia ACT 453

a central depository, means the rules of a central depository, and includes—

rules contained in the memorandum and articles of association or other constituent document of the central depository;

rules in respect of such other matters as are necessary or desirable for the proper and efficient operation and management of the central depository, including rules setting fees and charges; and

Securities Industry (Central Depositories) 15

an exchange holding company, means the memorandum and articles of association, including rules regulating the activities and conduct of the company in its capacity as an exchange holding company;

―scrip‖ means any document that is, or is a document of title to, a security;

―security‖ means debenture, note, stock and share in a public company or corporation, or bond of any government or of any body, corporate or unincorporate, and includes any right or option in respect thereof, any interest as defined in section 84 of the Companies Act 1965 [Act 125] and any interest in a unit trust scheme;

―securities account‖ means an account established by a central depository for a depositor for the recording of deposit of securities and for dealings in such securities by the depositor;

―securities laws‖ means this Act, the *Securities Industry Act 1983, the Securities Commission Act 1993 and the *Futures Industry Act 1993 [Act 499] and, unless expressly stated otherwise, includes any subsidiary legislation made under those laws;

―selling out‖ means the selling effected by a stock exchange or its clearing house, according to the rules of the stock exchange, of securities which a buyer has failed to accept and to pay for when delivered on a day fixed for settlement;

―stock exchange‖ has the same meaning as is assigned to that expression under subsection 2(1) of the *Securities Industry Act 1983;

*NOTE—This Act has since been repealed by Capital Market and Services Act 2007 [Act 671]

which comes into operation on 28 September 2007 except Division 2 of Part VI which comes into operation on 1 April 2010–see subsection 381(2) Act 671, P.U. (B) 342/2007 and P.U. (B)

143/2010.

16 Laws of Malaysia ACT 453

―stock market‖ has the same meaning as is assigned to that expression under subsection 2(1) of the *Securities Industry Act 1983;

―unit trust scheme‖ has the same meaning as is assigned to that expression under section 2 of the Securities Commission Act 1993;

―unlisted deposited security‖ means a deposited security other than a listed deposited security;

―user‖ means—

an authorized depository agent;

an issuer;

a stock exchange;

a body corporate acting as a clearing house of a stock exchange; or

such other person as may be specified in the rules of a central depository, who may be given access to a computer system of the central depository;

A reference to writing shall be deemed to include any mode of representing or reproducing letters, figures or marks in a visible form.

A reference to a security being deposited, or required to be deposited, with a central depository shall be construed as a reference to a deposit of or a requirement for the deposit of—

*NOTE—This Act has since been repealed by Capital Market and Services Act 2007 [Act 671]

which comes into operation on 28 September 2007 except Division 2 of Part VI which comes into operation on 1 April 2010–see subsection 381(2) Act 671, P.U. (B) 342/2007 and P.U. (B)

143/2010.

Securities Industry (Central Depositories) 17