Under the patronage of the Jordan Securities Commission, Mr. Khalil Naser the Chief Executive Officer of the Securities Depositary Center of Jordan (SDC) and Mrs. Nadia Al Rawabdeh the General Manager of the Social Security Corporation of Jordan (SSC) signed an agreement between SDC and the SSC on 31/08/2016 at the Capital Market institutions headquarters; whereby the SDC has provided the SSC with an electronic lien system which allows the SSC to take the duly required actions related to placing and releasing lien restrictions according to the decisions issued by the SSC within its legal authority assigned to it by the law.

The SDC notifies the decisions to place or release liens electronically to the SDC members of public shareholding companies, broker and custodians via each member’s mailbox where the members are solely responsible for the execution of those decisions to the non-deposited part of the shareholders’ registers.

The implementation of this new mechanism moved the two institutions to a paperless environment, and helped providing accuracy and speed in taking necessary actions related to enforcing the law through placing or releasing lien restrictions duly and in an effective and fast manner.

A major advantage of the implementation of this new system is eliminating the risks related to executing the SSC’s lien restrictions by the SDC as the execution of these decisions will be the sole responsibility of the related party (SSC).

It worth mentioning that this new project is considered one of the SDC’s strategic plans amongst many more major projects the SDC is committed to achieve in the future, such as holding the registrars of the governmental issues of securities with the SDC in cooperation of the central bank of Jordan, and involving the custodians in the settlement cycle.