Section 3
of Securities Industry (Central Depositories) Act 1991
Section 3
(1)
No person shall establish, maintain, operate or hold himself out as providing, maintaining or operating a system for the central handling of securities, whether or not listed on any stock exchange—
(a)
whereby all such securities are deposited with and held in custody by, or registered in the name of, the person or his nominee for the depositors and dealings in respect of those securities are effected by means of entries in accounts without the physical delivery of scrips;
(b)
which permits or facilitates the settlement of securities transactions or dealings in securities without the physical delivery of scrips; or
(c)
to provide other facilities and services incidental thereto.
(2)
Subsection (1) shall not apply to—
(a)
a central depository;
(b)
the Central Bank of Malaysia; and
(c)
any person exempted by the Minister under section 62A.
18 Laws of Malaysia ACT 453
(3)
A person who contravenes subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding ten million ringgit or to imprisonment for a term not exceeding ten years or to both.