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Definition
Central Registry means any activity related to the bookkeeping of securities ownership and any interests thereon, including:
• Maintaining records of the names of securities owners and the relevant rights and obligations.
• Distributing financial benefits of securities entitlements deposited with the company, including the principal value, the proceeds, dividends, redemption values, and restructuring payments.
• Distributing any information and reports disclosed by securities issuers or entities related to these securities.
• Any service related to the issuance of securities on behalf of the issuer.
• Any action required to replace a security upon the restructuring of the issuer.
Participants of the Central Registry System
Issuers of securities
Objectives of Central Registry System
• Establish a complete and unified database including data of all securities owners in the market. Such database should be managed by one central authority through an automated system in accordance with the international systems.
• Simplify the procedures of dividend payments to the shareholders and other transactions as specified by the issuer in the General Assembly ( bonus shares- subscription…etc)
• Enhance transparency in the market through publishing the information disclosed by issuers.
• Simplify the procedures of capital amendments such as increase or decrease of par value and its effects on the shareholders’ balances.
• Simplify the procedures of mergers and acquisition.
Maintenance of shareholders’ records
Definition
One of the main services delivered by the Central Registry is the maintenance of organized records of the names of securities owners and ownership transfer procedures resulting from trading transactions. Such data is then submitted to securities issuers upon request.
Shareholders’ records
• An application is sent from the issuer to the depository company to maintain a record for its shareholders or by e-mail to mcdr.info@mcsd.com.eg
• The application shall indicate the reason for maintaining the record and the required data.
• The record should be prepared and delivered to the authorized person of the issuer or send it by e-mail or both.
Execute the issuers’ resolutions during the General Assembly
Corporate actions:
It means any resolutions taken during the General Assembly concerning the issuers' securities:
• Distribution of cash dividends ( coupons ) or bond proceeds
• Capital amendment
• Increase in issued capital by:
1. Distributing of bonus shares
2. Offering shares for subscription
• Decrease of issued capital by:
1. Decreasing the number of issued shares
2. Decreasing the par value of each share
• Stock split (increase the number of shares with the same capital).
• Consolidation of different issues or currency.
• Bond redemption.
• Merger and acquisition transactions for the companies registered in the Central Depository System.
Dividends
1. The issuer shall notify the MCSD with its resolution to distribute cash dividends, the notification will include the payment date, maturity date, coupon number and value.
2. The issuer shall be notified with the account number where the total value of coupon will be deposited.
3. The issuer transfers the total amount to the account referred to three business days before the payment date.
4. The shareholder’s record should be prepared according to the maturity date set by the issuer and should be made available on the company’s dividends systems at payment locations.
5. Payment shall be made at the specified date and the client goes to one of the payment locations with his ID and account statement of this security.
Transactions related to capital:
1. Corporate actions are executed according to the issuers’ instructions in the General Assembly.
2. All legal documents should be completed and delivered to the depository company to execute the transaction. These documents should include the commercial register indicating the last capital amendment.
3. The legal and technical aspects of the transaction should be examined by the relevant departments.
4. At the transaction day, the company prepares the shareholder’s list entitled for the corporate action according to the date specified by the issuer.
5. The company notifies the custodians of the corporate action.
6. The issuer company is notified upon completion of the transaction. |
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