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:
i. Hereditary
transfer of securities already deposited in the VFEX Depository CSD System subject to relevant approvals
ii. Donations
subject to relevant approvals
iii. Gifts
subject to relevant approvals
iv. foreclosures
on execution
v. Other
dispositions of eligible securities with prior regulatory approval
Pledges
The
Depository Services also includes the recording of pledges in favour of lending
institutions with the agreement of both the borrower & the lending
institution. The CDS procedures require that both the pledgor (borrower) and
the pledgee (lending institution) open accounts in the CSD through their
respective Depository Participants. The VFEX Depository will keep records of the
pledge in the pledgee’s collateral account for the quantity agreed by the
different parties and in accordance with the details submitted in the
Securities Pledge Form by the parties concerned. In the records of CSD, a
pledgor remains the shareholder of the pledged securities, however, the pledgor
cannot avail of these shares for any other transaction unless the pledgee
submits the appropriate pledge release instruction in accordance with CSD
rules.