Securities Industry (Central Depositories) Act 1991 · Updated to 11 Apr 1991 · Part II · Central Depository
8. Duty of a central depository to ensure orderly dealings in deposited securities
Feedback & supportA central depository shall take all steps and do all things necessary to ensure orderly dealings in securities deposited or lodged with it.
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;
A central depository may, in performing its function under subsection (1), give to an issuer of any deposited security directions—
issuer
―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;
to do a particular act or thing; or
to refrain from doing a particular act or thing.
An issuer who fails to comply with any direction given by a central depository under subsection (2) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding one year or to both.