Participants (Custodians) open and maintain Securities Accounts on behalf of
clients. These comprise Clients’ Securities Accounts and Participants’
(proprietary) Securities Accounts which are segregated from each other.
Clients’ Securities Accounts are only opened through and registered with a Depository
Participant. There is not restriction on the number of security accounts that
the client can open with the various Depository Participants?
VFEX Depository accepts deposits of securities certificates from Clients
through their Depository Participants. To use the VFEX Depository services, the
Investor opens a Securities accounts in the CSD system through a Depository Participant.
Deposited certificates are forwarded to the Transfer Secretary of the issuer
for the confirmation of the authenticity thereof. Clients’ Securities Accounts
are credited only upon receipt of the written confirmation of the authenticity
of the deposited certificates from the Transfer Secretary. This process
eliminates the risk of introducing invalid securities in the CSD system. The
registry has up to 72 hours to submit the confirmation to the VFEX Depository.
can withdraw securities from the CSD by submitting a request through their
Depository Participant. Upon withdrawal, the Client Securities Account is
debited and the issuer’s registry is instructed to issue a certificate in the
name of the client.