Chapter (30)
No entity may act as a custodian unless it is a bank, or an entity specified by executive regulation, and licensed by the Capital Market Authority pursuant to the rules and procedures set forth in the Executive Regulations.
The activity of a custodian shall be any activity pertaining to the holding, dealing in and managing securities in the name and for the account of a beneficial owner whose securities are in the registered name of the custodian, and always subject to the instructions of such beneficial owner.
Chapter (31)
An entity licensed to act as a custodian shall:
- Segregate its own securities and accounts from that of its clients and maintain records of that same;
- Credit and debit the account of each beneficial owner for payments arising out of dealing in and managing such securities;
- Redeem securities and reimburse cash to the beneficial owner pursuant to his request.
Chapter (32)
An entity licensed to act as a custodian shall enter into a written agreement with its clients, and which shall not contradict any terms and conditions set forth by the Capital Market Authority.
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