Pledging securities through electronic pledge system
The SDC developed a special electronic system for pledgee banks to place pledge in their favor on the securities belonging to their clients directly.
Persons benefiting from the service
The investor (pledgor) and banks use the electronic pledge system.
Conditions of obtaining the service
- The investor’s shares must be free and deposited at the central registry at the SDC.
- The pledgor Banks have to be connected to the electronic pledge system.
Procedures
- The investor refers the bank (pledgee) to sign the pledge form, which includes details of the pledge process and the bank's authentication of the signature of the pledgor's signature.
- The pledgee enters the information of the pledgor according to the pledge form on the SDC's electronic system "Pledge System".
- The SDC checks the pledge form and verifies that there is a free balance registered in the name of the pledgor in the central register that allows the pledge process to be carried out.
- The concerned employee collects fees for executing the transaction.
- Completing the process of pledging securities by the SDC.
- The pledgee is notified of the completion of the pledge through the electronic Pledge System.
- The pledgee informs the pledgor of carrying out the pledge process.
Required Documents
- A valid copy of the identification documents for the investor (pledgor).
- In case of a legal representative, the power of attorney must fulfill the conditions for its accreditation with the SDC.
- Covering letter from the pledgee requesting to authenticate the restriction of the pledge, including the data of the pledge process that the SDC is required to complete, and its approval of paying the stamp fees due to the pledge process to the Ministry of Finance.
Estimated Time
One business day.
Location
Banks that are working on the Electronic Pledge System.
Partner institutions
Banks (Pledgee)
Estimated Fees
The SDC shall collect (5) JOD for each placing pledge on securities.
