(1) Where a
Clearing House operates a Central Securities Depository (CSD), it must have rules and procedures, including robust accounting practices and controls to:
(a) ensure the integrity of securities issues; and
(b) minimise and manage risks associated with the safekeeping and transfer of securities.
CSD must ensure that securities referred to in (1)(a) are recorded in book-entry form prior to the trade date.
(3) For the purposes of (1)(a), a
CSD's systems and controls must ensure that:
(a) the unauthorised creation or deletion of securities is prevented;
(b) appropriate intra-day reconciliation is conducted to verify that the number of securities making up a securities issue or part of a securities issue submitted to the
CSD is equal to the sum of securities recorded on the securities accounts of the Members and other participants of the CSD;
(c) where entities other than the
CSD are involved in the reconciliation process for a securities issue, such as the issuer, registrars, issuance agents, transfer agents or other CSDs, the CSD has adequate arrangements for cooperation and information exchange between all involved parties so that the integrity of the issue is maintained; and
(d) there are no securities overdrafts or debit balances in securities accounts .
Derived from RM118/2013 [VER15/07-13]