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 II · Central Depository

5. Power of Minister to approve the establishment of a central depository

(1)

The Minister may, in writing, on the recommendation of the

Commission, approve an application made under section 4 for the establishment and maintenance of a central depository if he is satisfied—

(a)

that the applicant is a company incorporated under the

Companies Act 1965, and an exchange holding company or a stock exchange is a shareholder of the applicant;

(b)

that the rules of the applicant make satisfactory provision—

(i)

with respect to the conditions under which securities may be deposited with, held by, withdrawn from, or transferred within, the central depository;

(ii)

for the holding of securities deposited with the central depository or its nominee company;

(iii)

for the processing of dealings in deposited securities;

(iv)

for facilitating the settlement of deposited securities;

Securities Industry (Central Depositories) 21

(v)

for the protection of the interests of depositors and the protection and control of information on deposited securities and dealings therein;

(vi)

for the monitoring of compliance with, and for the enforcement of, the rules of the central depository;

(vii)

with respect to the maintenance of a policy or policies of insurance, and the establishment and maintenance of compensation funds, for the purpose of settling claims by depositors against the central depository, its nominee companies and authorized depository agents; and

(viii)

generally for the carrying on of the business of the central depository with due regard to the interests of the public; and

(c)

that the establishment and maintenance of the central depository would promote the positive development of the capital market in Malaysia and that the interests of the public dealing with deposited securities (whether or not listed on a stock exchange) will be served by the granting of his approval.

(2)

The Minister may, in approving any application under subsection (1), impose—

(a)

requirements with respect to the paid-up or authorized capital of the central depository;

(b)

conditions relating to the shareholdings of the members of the central depository; and

(c)

any other requirements or conditions as he considers appropriate.

22 Laws of Malaysia ACT 453

(3)

Without limiting the generality of the requirements and conditions specified under subsection (2), the Minister may in writing, on the recommendation of the Commission, amend or revoke any requirement or condition imposed under that subsection or impose new requirements and conditions, if the Minister is satisfied that it is appropriate to do so for the protection of depositors or the public interest or for the proper regulation of the stock market.

Terms defined in s 2

Act
Defined · s 2
―Act‖ includes any regulations made under this Act;
Open s 2
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;
Open s 2
Commission
Defined · s 2
―Commission‖ means the Securities Commission established under the Securities Commission Act 1993;
Open s 2
dealing
Defined · s 2
―dealing‖, in relation to any deposited security, includes the charging or pledging of the deposited security by a depositor;
Open s 2
exchange holding company
Defined · s 2
―exchange holding company‖ has the same meaning as is assigned to that expression under subsection 2(1) of the *Securities Industry Act 1983;
Open s 2
information
Defined · s 2
―information‖ includes data recorded in a form which can be processed by equipment operating automatically in response to instructions given for a particular purpose;
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)…
Open s 2
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;
Open s 2
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;
Open s 2
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)…
Open s 2
stock market
Defined · s 2
―stock market‖ has the same meaning as is assigned to that expression under subsection 2(1) of the *Securities Industry Act 1983;
Open s 2

Report

Read on from s 5A

Part III

Provisions Relating to Deposited Securities

Read on from Part III

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