Chapter One Definitions

The Instructions of Registration, Deposit and Settlement of Securities For the Year 2017 Issued Pursuant to Article (81/A) of the

Securities Law No. (18) for the Year 2017

Article (1)	These Instructions shall be called the (Instructions of Registration, Deposit and Settlement of Securities For the Year 2017) and shall come into effect as of 01/10/2017.

	Chapter One Definitions

Article (2)	A-	The following words and expressions used in these Instructions shall have the meanings ascribed thereto hereunder unless the context indicates otherwise:
		The Law	:	The Securities Law in force.
		The Commission	:	The Securities Commission.
		The Board	:	The Board of Commissioners of the Commission.
		Center	:	The Securities Depository Center.
		Board of Directors	:	The Center’s Board of Directors.
		Chief Executive Officer	:	The Center’s Chief Executive Officer.
		The Market/Stock Exchange	:	The Amman Stock Exchange or any Trading market in securities licensed by the Commission.
		Trading	:	Selling and buying securities in the Market.
		Trading System	:	Trading system used in the Market.
		Trading Contract	:	The contract of buying and selling securities in the market.
		Settlement Contract	:	The contract of settling the obligations of each the Broker and the Custodian related to a Trading Contract executed by the Broker to a custody client in accordance to these instructions.
		Transfer Contract	:	The contract of transfer of securities’ ownership from the transferor to the transferee executed at the Center.
		Broker	:	The judicial person licensed by the Commission as a financial broker or dealer.
		Custodian	:	Any legal person engaged in the business of providing safe custody of securities.
		Issuer	:	Any judicial person issuing or announcing the intention to issue securities
		Member	:	The public shareholding company, the Public Issuer, the Broker, the Custodian and any other entity determined by the Board.
		Center Number	:	The number issued by the Center to the investor.
		Account Number		The client’s account number verified and adopted by the Broker at the Center that is used for the purposes of Trading in securities for the benefit of the client.
		Ownership Restriction	:	Any restriction or limitation that prevents or restricts the absolute disposal of the security.
		Depositing Securities	:	Authentication of the ownership of registered securities, the data pertaining to its owners and any ownership restrictions at the Center in accordance with these Instructions.
		Settlement Guarantee Fund	:	The Settlement Guarantee Fund established in accordance with the Law.
		Clearing	:	The process of computing the net rights and obligations of Trading counter-parties arising from a Trading Contract, in order to deliver the securities or settle their price payments on the specified settlement date.
		Settlement	:	The process by which a Trading Contract is completed with the final, unconditional transfer of securities from the seller to the buyer and the final settlement of price payments in their respect.
		Delivery Versus Payment	:	A method of settlement according to which the securities are delivered in exchange for price payment.
		Settlement Bank	:	The bank designated by the Center for the purposes of receiving and making payments of the value of the traded securities
		Settlement Account	:	The bank account that the Center opens in its name at the Settlement Bank and which is used for the receipt of payment and disbursement of payment of the traded securities.
		Liquidity Reserve Account	:	The bank account that the Center opens in its name at the Settlement Bank into which amounts due from Brokers, Center Members, are paid by them for the purposes of Traded securities Settlement.
		Settlement Day	:	The Day specified by the Center for the completion of Settlement.
		Center’s Database	:	The database that contains all the necessary information concerning issuers of registered and deposited securities at the Center; in addition to the information concerning the Center Members, the owners of securities and any ownership restrictions.
		Account	:	The securities account.
		Free Balance	:	The Investor’s balance of Securities that is free from any restrictions that would prevent its absolute disposal.
		Day	:	The Center’s official working Day.
	B-	The words and expressions not defined in these Instructions shall have the meanings assigned to them in the Law, Regulations and Instructions issued accordingly.

Article (3)	The Center shall undertake the following main functions:
	A-	Registration of issued securities.
	B-	Depositing securities.
	C-	Transfer of securities’ ownership.
	D-	Conducting Clearing and Settlement for securities transactions.
	E-	Authenticating ownership restrictions on deposited securities.
	F-	Registering and authenticating any changes initiated by the Issuer on its’ issued securities and validating such changes on the Center’s Database.

Article (4)	The Center shall provide the following services to investors in accordance with these Instructions:
	A-	The issuance and Designation of the Center Number for the investor.
	B-	Freezing of Securities.
	C-	Issuance of an ownership Statement for deposited securities.
	D-	Issuance of a statement of account for deposited securities.
	E-	Placing of Pledge over deposited securities.
	F-	Any other services determined by the Center.

Article (5)	The Center shall maintain a special register for the necessary information and data related to the following:
	A-	Members of the Center.
	B-	Securities’ Issuers.
	C-	Securities registered at the Center.
	D-	Securities deposited at the Center.
	E-	Owners of Deposited Securities.
	F-	Ownership restrictions placed on deposited securities and the rights of related Parties.
	G-	Transfer of securities’ ownership.
	H-	Any other data that the Center deems necessary to maintain.
Article (6)	A-	The depositing of securities, transfer of ownership and authenticating ownership restrictions shall be authenticated by records in the appropriate Accounts at the Center.
	B-	Unless otherwise proven, the entry records and the accounts maintained by the Center, whether manually or electronically, as well as any document issued by the Center, shall constitute prima facie legal evidence of ownership, registration, transfer of ownership and Settlement of the securities, at the prices and on the dates stated in those records, accounts or documents.
Article (7)	It shall be prohibited for any person to access the Center’s Database whereby such unauthorized access would enable that person to obtain information regarding the Accounts, its owners and any ownership restrictions related thereto unless authorized thereby by virtue of the Law, the By-Laws and Instructions issued by the Center.

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