Depository 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?
The 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.
Clients 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.