Securities Industry (Central Depositories) Act 1991 · Updated to 11 Apr 1991 · Part III · Provisions Relating to Deposited Securities
28. Physical stock count of scrips
Feedback & supportFor the purpose of verifying the accuracy of any record or account kept by it pursuant to this Act and for such other purposes as may be prescribed by the Minister by regulations made under this
record
―record‖ includes, in addition to a record in writing— (a) any photograph; (b) 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 (c) 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— (i) 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(c) of this definition, a transcript of the sounds or other data embodied therein; *NOTE—This Act has since been repealed by Capital Market and Services Act 2007 which comes into operation on 28 September 2007 except Division 2 of Part VI which comes into operation on 1 April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, a central depository shall, before or at the end of every quarter during a financial year (in this section referred to as the ―prescribed period‖), conduct a stock count of all scrips representing deposited
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securities and any other documents in relation therewith held in custody by, or in the name of, the central depository or its nominee company.
central depository
―central depository‖ means a company approved by the Minister under section 5— Securities Industry (Central Depositories) 11 (a) to establish and operate a system for the central handling of securities, whether or not listed on any stock exchange,— (i) 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 (ii) which permits or facilitates the settlement of securities transactions or dealings in securities without the physical delivery of scrips; and (b) to provide other facilities and services incidental thereto;
The central depository shall, within twenty-one days after the end of the prescribed period, submit—
in the case where any of the deposited securities is a listed deposited security, to the stock exchange (on which the deposited security is listed), the issuers and the Commission; and
in the case where none of the deposited securities is a listed deposited security, to the issuers and the Commission, a report on the outcome of such stock count, and such report shall, if applicable, state what action the central depository proposes to take with regard to any deficiency in the number of scrips representing the deposited securities or any other documents in relation therewith or with regard to any other inaccuracies in its records or accounts.
Notwithstanding subsection (1), the Commission may, if the
Commission
―Commission‖ means the Securities Commission established under the Securities Commission Act 1993;
Commission considers it appropriate, at any time, conduct, or appoint an approved company auditor to conduct, a stock count of all scrips representing the deposited securities and any other documents in relation therewith.
approved company auditor
―approved company auditor‖ has the same meaning as is assigned to that expression under subsection 4(1) of the Companies Act 1965;
Where the Commission is not satisfied with the report submitted to it by a central depository under subsection (2), the
Commission may conduct or appoint an approved company auditor to conduct the stock count pursuant to that subsection, and the costs and expenses incurred by the Commission or the approved company auditor, as the case may be, in respect of such stock count shall be borne by the central depository.
The Commission may,—
upon receipt of a report from the central depository;
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upon receipt of a report from an auditor appointed by the
Commission under subsection (3) or (4); or
after conducting a stock count pursuant to subsection (3)
or (4), give to the central depository such directions as it considers appropriate.
A central depository which fails, without lawful excuse, to comply with any direction given by the Commission under subsection (5)
shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit.
DIVISION IV
Securities Transactions, Entries and Miscellaneous