| Article (105) |
Ownership restrictions over deposited Securities shall include the following: |
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A- |
Pledge. |
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B- |
Lien. |
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C- |
Freeze. |
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| Article (106) |
A- |
Upon depositing any securities, the Issuer must inform the Center in writing of any existing ownership restriction placed upon those securities. |
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B- |
Upon depositing securities, the Center shall place ownership restrictions on those securities in its registers. |
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C- |
The ownership restrictions referred to in Paragraph (A) of this Article shall remain placed in the Center’s registers until the Issuer requests the Center to release such restrictions in writing. |
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D- |
The Issuer shall bear the responsibility resulting from the placement and release of ownership restrictions in accordance with Paragraphs (A) and (B) of this Article. |
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E- |
In relation to the release of ownership restrictions referred to in this Article, the relationship between the pledger or the pledgee, or the entity that imposed the lien and the Issuer shall be direct. |
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F- |
The Issuer shall maintain all the documents supporting the ownership restrictions referred to in this Article, including original pledge deeds or lien documents or decisions. |
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| Article (107) |
A- |
Only Securities deposited at the Center shall be subject to pledge. |
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B- |
Pledging of Securities shall only be a first ranking right of pledge. |
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C- |
The Center shall place ownership restrictions on deposited Securities after the Securities’ depositing date, and in accordance to the documents submitted to it, and in compliance with these Instructions in exchange for the determined service charges or fees. |
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D- |
The pledge shall not be considered effective unless registered and placed in the registers of the owners of deposited securities at the Center. |
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E- |
It shall be prohibited to pledge the deposited securities owned by a minor unless an authorization is obtained from the competent relevant court. |
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| Article (108) |
A- |
The Issuer remains responsible for placing liens in its registers by virtue of court decisions, execution departments and official related entities for non-deposited securities. |
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B- |
The Issuer shall not be permitted to place pledges on any non-deposited securities. |
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C- |
The Issuer remains responsible for the pledges imposed over non-deposited securities and the release of such pledges. |
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| Article (109) |
A- |
Pledge shall be placed on deposited Securities in compliance with the Center’s executive procedures, based on the request submitted to the Center by each of the pledger and the pledgee and in accordance to the designated form presented to the Center with all the documents required as determined in the set executive procedures, provided with the following minimum information and data: |
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1. |
The Pledger’s full name. |
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2. |
The Center’s number for the Pledger. |
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3. |
The Pledgee’s full name. |
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4. |
The Center’s number for the Pledgee. |
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5. |
The address for each of the Pledger and the Pledgee. |
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6. |
The name of the Security which will be pledged. |
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7. |
The number of deposited securities to be pledged. |
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B- |
The following rights resulting from the Pledged Securities shall be defacto pledged directly unless the Pledger and Pledgee determined explicitly otherwise as stated in the Pledge designated form presented by them in virtue of the provision of paragraph (A) of this article: |
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1. |
The Dividends or interests or revenues earned from the Securities. |
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2. |
The Bonus Shares. |
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3. |
Refunds resulting from redemption of the corporate Bonds or Sukuk or Bonds throughout its duration or as of as of its due date. |
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4. |
Refunds resulting from the decrease of the Issuer’s Capital. |
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C- |
The concerned party shall pay the determined service charges and fees. |
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D- |
Unless previously identified at the Center’s database, the Center shall identify and open an account for the Pledgee on the Center’s database and provide him with the identification statements. |
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E- |
The Center shall make certain of the balance of deposited securities in the Account of the pledger and in case the balance is sufficient, the Center shall place the pledge on the securities in of the owner. |
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F- |
For Securities Pledged through the Electronic Pledge System, the Center’s notification for the Pledgee of the Placement of pledge shall be considered acknowledged through the Electronic Pledge System, the Pledgee must notify the Pledger of the pledge on his address specified on the Pledge Form. |
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| Article (110) |
A- |
Notwithstanding article (106/C) of these instructions, the release of Pledge upon deposited Securities shall occur upon the Pledgee’s request or by the Pledgee in compliance with the executive procedures issued by the Center and in accordance with the form designated for this purpose, that will include the following minimum information and data: |
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1. |
The Pledger’s full name. |
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2. |
The Center’s number for the Pledger. |
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3. |
The Pledgee’s full name. |
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4. |
The Center’s number for the Pledgee. |
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5. |
The name of the Security. |
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6. |
The number of securities from which the pledge will be released. |
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B- |
The concerned party shall pay the determined service charges and fees. |
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C- |
The Center shall release the pledge on deposited securities in its registers and the Pledgee must inform the Pledger of the release of Pledge. |
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| Article (111) |
Releasing the pledge is directly executed by the pledgee for the securities pledged through the Electronic pledge System in accordance with the executive procedures and the pledgee shall inform the pledger of the release of Pledge. |
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| Article (112) |
A- |
In case of a stock split (division of the nominal value) of pledged securities, shares resulting from the Split shall be pledged. |
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B- |
In case of the decrease of the number of deposited securities as a result of a decrease of the Issuer’s capital, the pledged securities shall be decreased according to the same percentage. |
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C- |
Notwithstanding paragraph (B) of article (109) of these instructions, Pledge shall be placed over the Bonus Shares deriving from the pledged securities, and shall also include the dividends and/or the interests and/or the revenues earned from the pledged Securities, and the refunds resulting from the decrease of the number of securities or its redemption throughout its duration or as of as of its due date. |
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| Article (113) |
The Center shall release Ownership restrictions on deposited securities directly in the case of securities sale operation for the execution of court’s order and official entities’ decision and without any liability on the Center. |
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| Article (114) |
Upon receiving lien decisions from the official competent entities and after the completion of the transfer of ownership of securities, the Center shall undertake the following measures on the Day on which the lien decision was received: |
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A- |
Ascertain that the owner of the securities subject to the lien is identified at the Center’s Database. |
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B- |
Ascertain that the person whose securities are subject to the lien owns the deposited securities according to the Center’s records. |
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C- |
If the lien was placed on the Securities on the same day of such Securities being sold by virtue of a Trading Contract, the Trading Contract shall prevail and is considered effective between its parties. |
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| Article (115) |
A- |
The lien decision should contain the following: |
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1. |
The following information and data related to the owner of the Securities: |
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a- |
The full name of the owner of the security in accordance with his/her identification documents for a natural person or the certificate of registration issued from the competent authorities for a judicial person. |
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b- |
The Center’s Number for the owner of the security. |
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c- |
The nationality. |
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d- |
The name of the mother (for a natural person). |
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e- |
The date of birth (for a natural person). |
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2. |
The number of securities subject to the lien , the Issuer’s name and the type of Securities. |
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B- |
If the lien decision did not contain the information and data required by Paragraph (A) of this Article, the Center shall inform the concerned entities of the measures taken by the Center without holding the Center responsible thereto. |
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| Article (116) |
If a number of shareholders exist in the Center’s Database that are similar in their names or data to the name mentioned in the lien decision, the lien shall be initially imposed on the deposited securities of all those shareholders until making enquires to the entity that imposed the lien as to the identity of the person whose securities are subject to the lien. |
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| Article (117) |
A- |
The Center shall place the lien on deposited securities in its registers on the date of the Center’s receipt of the lien decision, unless it is proven that such Securities were sold in the market or transferred by the Center before receiving the said decision. |
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B- |
The Issuer shall place lien restrictions or release liens for non-deposited securities and inform the entities concerned of the actions taken by it accordingly. |
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| Article (118) |
A- |
If the lien decision did not clearly illustrate the securities subject to the lien, its type and the name of the Issuer, and the lien decision was limited to a certain amount of value, the lien shall be imposed on any securities owned by the concerned person which is equal in value to the amount specified in the lien decision in accordance with the Center’s executive procedures. The securities value shall be calculated based on its market value, and if there is no market value then it shall be calculated based on the nominal value. |
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B- |
The Center shall not be responsible towards any entity if the person whose securities were subject to the lien did not possess any shareholdings, or if his ownership balance of Securities was insufficient to cover the required value of the lien or for any other reason on the day the Center received the lien decision. |
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C- |
Notwithstanding paragraph (A) of this article, lien restrictions shall not be placed upon Securities financed on Margin basis, unless such Securities’ rights were settled in accordance with the executive procedures issued by the Center by virtue of these instructions. |
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| Article (119) |
Ownership Restrictions upon deposited Securities shall be released on the concerned accounts after the Center receives decisions to release such restrictions accordingly. |
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| Article (120) |
A- |
Freezing securities shall mean the prevention of any disposal of securities, by any means whatsoever, based on the request of the securities’ owner. |
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B- |
The owner of securities shall have the right to freeze the securities owned by him by virtue of a written application submitted to the Center in accordance with the form designated for this purpose. |
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C- |
The freezing of securities shall be imposed only upon deposited securities available at the Center and after the payment of the determined service charges or fees. |
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D- |
The owner of securities that have been frozen in accordance with these Instructions shall not dispose of such securities until the release of the freeze by the Center upon his the request. |
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E- |
The freezing of securities shall be released upon a written application submitted to the Center by the security’s owner in accordance with the form designated for this purpose. |
