The CSD provides a number of corporate services to Issuers for as long as a register of financial instruments is maintained by the CSD.
When dividend or interest payments are due, the CSD will carry out the necessary processing including :
A. identification of holders to whom dividend/interest payment is due,
B. calculate payments due, and
C. printing of cheques and/or direct credit processing.
The CSD will forward the printed instrument or direct credit details to the Issuer in bulk. The Issuer will be responsible for reconciling dividend warrants and interest payments and for signing off and dispatching the warrants and/or instructions.
As part of the dividend/interest payment procedures the CSD shall also provide the following reports:
A. “Payments Withheld” due to unresolved Estates or Garnishee Orders or other grounds, and
B. “Payment Details” in electronic format to facilitate the reconciliation process.
The CSD also records the payment of any dividend or interest payment due to a holder of financial instruments to be issued either to a third party recipient (eg. mandatory, usufructuaries/legal guardians, curators, etc.) or directly to a bank account in accordance with the appropriate instructions received from the holder of financial instruments involved or from such third parties, subject to the submission of relevant authenticated documentation.
Direct Credit Facilities
Interest or dividend payments credited into designated securities holders’ money accounts held with banks, credit or other financial institutions, may be made available on all registered securities holdings maintained by the CSD. Direct Credit Facilities are issued in conformity with electronic file formats as agreed to with such banks or institutions.
Upon maturity of a fixed term financial instrument, the CSD shall identify the relevant holders of the financial instrument and will process and prepare the redemption cheques as agreed to with the Issuer, saving any outstanding unresolved estate or continuing blocked accounts. The Issuer remains responsible, however, for the reconciliation and mailing of the relevant redemption funds as well as for the final resolution of unresolved estates and blocked accounts
The Exchange, as agreed to with the prospective Issuer or Issuer, may undertake all primary issue processes on behalf of the Issuer or prospective Issuer, including, but not limited to, the services normally provided by the Registrar and/or the Manager of an issue, processing of applications, allotment and allocation and processing of refunds where applicable.
Upon allotment, the Registrar, whether this is the Exchange or any other person appointed by the Issuer to provide this service, shall supply the CSD with all the relevant information to enable the CSD to open, hold and maintain the relevant register of holders on behalf of the Issuer.
Rights and bonus issues
The CSD, as agreed with the Issuer, may undertake all processes on behalf of the Issuer in connection with rights and bonus issues. Upon allotment of the rights issue or bonus shares, the Registrar, whether this is the Exchange or any other person appointed by the Issuer to provide this service, shall supply the CSD with all the relevant information to enable the CSD to amend the relevant register of holders on behalf of the Issuer to reflect the new allotment of financial instruments.
As part of its obligations to maintain registers of financial instruments on behalf of Issuers, the CSD shall maintain a record of financial instruments pledges against the respective financial instruments holders’ accounts.
Details of a pledge for either registration and/or release, as the case may be, shall be notified directly by the pledge and/or the pledgor to the CSD in the form of executed pledge agreements and the prescribed form. The CSD shall record the details of the pledge against the pledgor’s account and shall acknowledge the action taken regarding such pledge to both parties concerned.
As part of its services to maintain registers of financial instruments on behalf of Issuer, the CSD may keep a record of Garnishee Orders that may be notified to issuers against securities holders’ investment in the respective securities issued by the notified issuers.
Upon instructions from Issuers, the CSD shall record the execution of garnishee orders against holders of financial instruments issued by the same Issuers served with garnishee orders.
No dividend or interest payments will be prepared in respect of those holdings of financial instruments against which a garnishee order has been recorded, pending further instructions from the Issuer.
Disposals of holdings of financial instruments against which a garnishee order has been recorded are not restricted.
The CSD provides Issuers with the necessary reports in order to enable Issuers to monitor holdings of their financial instruments in accordance with any restrictions that may be imposed by the Issuer. The format of such reports and the reporting schedule will be agreed upon between the CSD and the respective Issuers.
Upon a request by an Issuer, the CSD may provide the necessary infrastructure subject to relevant authorisations and security set-ups for an Issuer to establish an electronic link with the CSD enabling such Issuer to be granted remote real-time access to its register/s maintained at the CSD.
Ad hoc Services
The CSD may enter into an agreement with an Issuer to provide other services as may be requested by an Issuer subject to such conditions and charges as may be established from time to time by the CSD.