How is a pledge placed upon deposited securities?
| 1. | Securities Pledge through Electronic Pledge System. | |
| Based on the SDC's continuous concern to serve its clients speedily and accurately, the SDC developed a special electronic system for pledgee banks specifically called the "Pledge System". This System enables pledgees (banks) to: | ||
| A- | Impose pledge restrictions on securities owned by their clients through the system directly. | |
| B- | Storing pledge transactions that placed through the system, auditing and authenticating them. | |
| C- | Printing the pledge form through the system to be signed by both the pledgor or his legal representative and the pledgee. The pledgee is to authenticate the correctness of pledgor’s signature. | |
| 2. | Securities Pledge to the benefit of banks that don't use Electronic Pledge System. | |
| The deposited securities at the SDC for the benefit of banks that do not use Electronic Pledge System are pledged by the virtue of Securities Pledge Form that accredit for this purpose and submitted by the pledgor or his legal representative to the SDC. The pledgee is to authenticate the correctness of pledgor’s signature. | ||
| 3. | Securities Pledge through the SDC directly. | |
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The securities are pledged through the SDC directly by the presence of pledgor and pledge or their legal representatives as the case may be to the SDC to sign Securities Pledge Form in front of authorized SDC employee. All required documents and information should be attached to the form. In case of a stock split (division of nominal value) on pledged securities, the pledge shall be authenticated on the securities that result from the split. Also, the pledge shall be authenticated on stock dividends unless the pledge deed states otherwise. In case of decrease the number of securities as a result of decrease issuer's capital, the pledged securities shall be decreased according to the same percentage. |
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FAQS Taxonomy
