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

41. Securities in suspense

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(1)

A central depository may specify that any deposited security in a securities account as being in suspense in any of the following circumstances:

Securities Industry (Central Depositories) 53

(a)

where the transfer of such security in the name of the central depository or its nominee company has not been, or cannot be, registered by its issuer under section 18;

(aa)

where the central depository has reason to believe or is satisfied that there is a breach of the rules of the central depository, stock exchange or recognized clearing house;

(ab)

where the central depository has been served with a notice by the Commission that the Commission suspects or has reason to believe that a provision of a securities law has been contravened and that a securities account of a depositor is relevant to its investigations regarding the contravention;

(b)

where the central depository has been served with an order of a court of competent jurisdiction prohibiting any dealing in respect of a deposited security;

(c)

where an order under regulation 8 of the Essential

(Protection of Depositors) Regulations 1986 has been made by the Central Bank of Malaysia and published in the Gazette;

(d)

(Deleted by Act A1039);

(e)

such other circumstances as may be prescribed by the

Minister by regulations made under this Act.

(2)

In the case of a security that is specified in the securities accounts as being in suspense pursuant to subsection (1)—

(a)

the rights, benefits, powers and privileges of a depositor;

and

(b)

the liabilities, duties and obligations of a depositor, in respect of, or arising from, the suspension of such a security, shall be as prescribed by the Minister by regulations under this Act.

54 Laws of Malaysia ACT 453

Terms defined in s 2

Act
Defined · s 2
―Act‖ includes any regulations made under this Act;
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Central Bank of Malaysia
Defined · s 2
―Central Bank of Malaysia‖ means the Central Bank established under the Central Bank of Malaysia Act 1958;
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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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Commission
Defined · s 2
―Commission‖ means the Securities Commission established under the Securities Commission Act 1993;
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dealing
Defined · s 2
―dealing‖, in relation to any deposited security, includes the charging or pledging of the deposited security by a depositor;
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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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issuer
Defined · s 2
―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;
Open s 2
Minister
Defined · s 2
―Minister‖ means the Minister of Finance; *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)…
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nominee company
Defined · s 2
―nominee company‖, in relation to a central depository, means a company appointed by the central depository for the purpose of holding any deposited security;
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rules
Defined · s 2
―rules‖, in relation to— (a) a central depository, means the rules of a central depository, and includes— (i) rules contained in the memorandum and articles of association or other constituent document of the central depository; (ii) rules to ensure compliance by its authorized depository agents, users or depositors of any obligations imposed by this Act or any other written law; (iii) rules in relation to the provision of services for the deposit, holding, transfer and withdrawal of securities, and the suspension or withdrawal of such services; (iv) rules to provide for the persons who may participate in one or more of the services referred to in subparagraph (iii); and (v) 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 (b) 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;
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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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stock exchange
Defined · s 2
―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 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)…
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Report

Read on from s 41A

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