Securities Industry (Central Depositories) Act 1991 · Updated to 11 Apr 1991 · Part II · Central Depository
7. Commission to approve amendment to rules of central depository
Feedback & supportIf a central depository proposes to make amendments to its rules, the central depository shall submit to the Commission—
central depository
―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;
the text of the proposed amendment; and
an explanation of the purpose of the proposed amendment.
The Commission shall, within six weeks after the receipt of the submission of any proposed amendments under subsection (1), give notice in writing to the central depository that it approves, or
Commission
―Commission‖ means the Securities Commission established under the Securities Commission Act 1993;
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disapproves of the proposed amendments, or any part of the proposed amendments, as the case may be.
No amendment to the rules of a central depository shall have effect unless they have been approved in writing by the Commission under subsection (2).
rules
―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;
The Commission may, by a notice in writing, declare any class of rules of a central depository to be a class of rules whose amendments do not require the approval of the Commission under subsection (2), and accordingly any amendments to the rules of that central depository which belong to that class shall, subject to subsection (6), have effect notwithstanding that they have not been so approved under subsection (2).
Where the Commission is of the view that any amendment to the rules of the central depository made under subsection (4) does not fall within the class of rules declared by the Commission under that subsection as not requiring its approval, the Commission may, after consultation with the central depository, require the central depository to submit such rule or amendment, as the ease may be, for its approval under subsection (2).
Any rule made or amended by the central depository which is the subject of a requirement made by the Commission under subsection (5) shall cease to have effect from the date of the
Commission making such requirement or such later date as the
Commission may determine:
Provided that this subsection shall not have effect until a reasonable time has been given to the central depository to notify the persons affected by such rule or amendment.
Notwithstanding the provision of this section, the
Commission may from time to time after consultation with a central depository, by a written notice require a central depository—
to make such rules, and within such period as may be specified in the notice; or
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to amend such rules, in such manner and within such period as may be specified in the notice.
A central depository which fails to comply with subsection (1) or which fails to comply with a requirement or written notice made under subsection (5) or (7) respectively shall be guilty of an offence.