In forceUpdated to 11 Apr 1991Read it in Bahasa Malaysia

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Securities Industry (Central Depositories) Act 1991 · Updated to 11 Apr 1991 · Part III · Provisions Relating to Deposited Securities

40. Charging or pledging of securities

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(1)

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.

Terms defined in s 2

authorized depository agent
Defined · s 2
―authorized depository agent‖, in relation to any central depository, means a person appointed under section 13 to be an agent of that central depository;
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central depository
Defined · s 2
―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;
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charge
Defined · s 2
―charge‖ includes a mortgage;
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deposited security
Defined · s 2
―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;
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depositor
Defined · s 2
―depositor‖ means a holder of a securities account;
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securities account
Defined · s 2
―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;
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security
Defined · s 2
―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 and any interest in a unit trust scheme;
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Report

Read on from s 41

Part IV

Secrecy Provisions

Read on from Part IV

Part V

Offences

Read on from Part V

Part VI

Enforcement

Read on from Part VI

Part VII

General

Read on from Part VII