Pledge System
التاريخ
Ref. : 8/9/10843
Date: 21/06/2006
Date: 21/06/2006
Memo No.
(21/2006)
Banks, Members of the Securities Depository Center
Subject : Pledge System
Within the SDC’s aim to develop the Jordan Capital Market and to enable banks to better serve their clients in a fast, efficient and accurate manner, the SDC developed a special electronic system specifically for pledgee banks called the "Pledge System".
The pledge system will enable the pledgee to impose pledge restrictions to their benefit on securities owned by their clients or to release such pledges directly using the system. This system also provides the ability to inquire about the transactions imposed by the pledgee.
Following are the main characteristics of the pledge system:
| 1. | The pledgee enters the transaction to place the pledge restriction upon his client’s securities directly through the pledge screen where he should enter all the requested information and data, then save and confirm the transaction. | |
|
2.
|
After completing (1) above, the pledge application is printed through the system and signed by both the pledgee and the pledgor and then this application is provided to the SDC along with all required documents. The pledgee is to authenticate the correctness of pledgor’s signature without holding the SDC responsible as a result for this.
|
|
| 3. | After receiving the pledge application and the fulfillment of all the conditions and document and ascertaining the investor's ownership of the securities that will be subject to the pledge and in case the free balance is sufficient, the SDC approves the transaction. | |
| 4. | The pledge system enables the pledgee to directly enter and approve the release of pledge restrictions upon his clients’ securities in cases where the pledge was placed for the pledgee’s interest without the SDC’s intervention from the release of pledge screen and in this case the pledgee transfers the investor’s securities to the central registry or to the investor account with the broker. | |
| 5. | The system enables the pledgee to inquire about the pledge restrictions and the account register details by securities, investor or the pledgee. | |
Thank you for your cooperation for the benefit of the Jordan capital market.
Samir Jaradat
Chief Executive Officer
