Section 40
Charging or pledging of securities
of Securities Industry (Central Depositories) Act 1991
Where a deposited security is charged or pledged by a depositor (in this section referred to as ―chargor‖ or ―pledgor‖) in favour of any person (in this section referred to as ―charge‖ or
―pledgee‖), a central depository or an authorized depository agent, with or through whom the securities account of the depositor is maintained, shall, on a request in writing made by the depositor, chargee or pledgee, as the case may be, transfer or cause to be transferred such security into the securities account of the chargee or pledgee, as the case may be, maintained for such purpose.
(2)
Where a request is made by a chargee or pledgee as provided under subsection (1), such request shall be supported by documents evidencing such charge or pledge in his favour.
(3)
The securities account maintained by the chargee or pledgee pursuant to subsection (1) shall be designated as the ―Pledged
Securities Account‖.
(4)
Where a charge or pledge over a deposited security has been discharged or released, the central depository or its authorized depository agent, as the case may be, shall, upon receipt of a notice in writing from the chargee or pledge confirming the same, transfer the deposited security into the securities account of the chargor or pledgor.
(5)
The provisions relating to the transfer or withdrawal of deposited securities shall apply, mutatis mutandis, to securities in the
Pledged Securities Account.