Securities Accounts
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?Security Deposit
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.Security Withdrawals
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.Transfers
Intra Account Transfer
An investor may have more than one account with the same or different participants. The investor can transfer securities among these accounts by making the request through the relevant Participants which then transfer the securities online. The Depository participant initiating the transfer will need to validate that there is no change in the beneficial ownership in the securities and the CSD system will validate this by checking the identification numbers on both accounts.Inter Account Transfers
The CSD rules provides instances where securities may be transferred from one investor account to the next. Instances where transfers of eligible securities between Depository Participants and between Depository Participants and their clients are permitted include:- Hereditary transfer of securities already deposited in the VFEX Depository CSD System subject to relevant approvals
- Donations subject to relevant approvals
- Gifts subject to relevant approvals
- foreclosures on execution
- Other dispositions of eligible securities with prior regulatory approval