The Central Securities Depository informed about the upcoming transformations

On October 23, 2020, an online conference was held at the State Enterprise “Central Securities Depository” where and investment agents took part. At the conference, investment agents were informed about current work of the Central Securities Depository on the implementation of development plans, about the upcoming transformation of the Central Securities Depository into a joint-stock company, obtaining a banking license for carrying out limited banking functions, as well as about assigning international identification codes to securities and legal entities.

Obtaining a banking license has become a necessary measure in accordance with clause 8 of the Decree of the President of the Republic of Uzbekistan “On measures to dramatically improve licensing and permitting procedures” No.-6044 dated 08.24.2020. This paragraph stipulates that starting from January 1, 2021, the right of state unitary enterprises and non-governmental organisations established by decisions of the President of the Republic of Uzbekistan or the Cabinet of Ministers to engage in licensed activities without obtaining an appropriate license is canceled.

Since the Central Securities Depository is a state unitary enterprise and was established by the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan “On the organisation and activities of the Central Securities Depository” No.21 dated May 21, 1999, it is required now to obtain an appropriate license to carry out limited banking operations.

Important to note that the exclusive functions of the Central depository of securities include:

  • registration of securities;
  • storage of documentary securities;
  • storage of documents confirming the issue of securities;
  • maintaining registers of securities owners;
  • accounting of state rights to securities, as well as rights to securities of persons authorised by the state to manage securities;
  • maintaining custody accounts of investment intermediaries;
  • making settlements in securities in the established manner;
  • registration of securities issued by non-residents of the Republic of Uzbekistan approved for distribution on the territory of the Republic of Uzbekistan;
  • registration of securities issued by residents of the Republic of Uzbekistan admitted for circulation outside the territory of the Republic of Uzbekistan;
  • registration of rights for securities issued and owned by investment funds, unless otherwise provided by law;
  • maintaining a unified base of depositors;
  • assignment of international codes to emissive securities issued by residents of the Republic of Uzbekistan;
  • collection and systematisation of information on the movement of emissive securities in custody accounts.

 

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