CHAPTER 7
INSTITUTIONS RELATED TO SECURITIES BUSINESS
DIVISION 1
CLEARING HOUSE, SECURITIES DEPOSITORY CENTER
AND SECURITIES REGISTRAR SECTION 219. No person shall operate the business of a clearing house unless a license
has been obtained from the SEC.
A clearing house means a center where services for the settlement and delivery of traded
securities including related services are provided.
SECTION 220. No person shall operate the business of a securities depository center
unless a license has been obtained from the SEC.
A securities depository center means a center where services for the deposit and withdrawal
of securities including related services for the purpose of account clearing are provided.
SECTION 221. No person shall provide securities registrar services unless a license has
been obtained from the SEC.
SECTION 222. The provisions of Section 206 and Section 207 including the related
penalty provisions shall apply to a clearing house, a securities depository center and a
securities registrar mutatis mutandis.
SECTION 223.4 In the operation of a clearing house, a securities depository center or a
securities registrar, persons operating such businesses shall comply with the rules, conditions
and procedures as specified in the notification of the Capital Market Supervisory Board.
SECTION 223/1.4 Any obligations either as a counterparty or through novation in a
securities trading agreement by the clearing house and the placement of collateral, if
undertaken in accordance with the clearing house’s rules as approved by the Capital Market
Supervisory Board, shall be legally binding and enforceable by law.
SECTION 223/2.4 In cases where the clearing house enters into an obligation in a
securities trading agreement either as counterparty or through novation, the clearing house
shall be bound to the rights and obligations with the member under the securities trading
agreements for which it provides settlement and delivery services, regardless of whether
such member has entered into securities trading agreement for its own accounts or for the
accounts of others.
SECTION 223/3.4 In cases where the clearing house receives any asset from its members
or has in its possession of such asset as collateral for settlement and delivery of securities, as
a result of securities trading agreements of its members or its members’ customers, or asset
placed with the clearing house by any member for purposes of maintaining the integrity of
the securities trading and settlement and delivery system, the provisions of Section 82 and
Section 83 of the Derivatives Act B.E. 2546 shall apply mutatis mutandis to the clearing
house in respect of the duty to look after and use of such asset.
SECTION 223/4.4 In cases where a petition is filed against a member in a bankruptcy
court and the court issues a receivership order, the provisions of Section 84, Section 85,
Section 86 and Section 87 of the Derivatives Act B.E. 2546 shall apply mutatis mutandis to
the clearing house or the asset received by or had in possession of the clearing house under
Section 223/3.
SECTION 223/5.4 In cases where the clearing house becomes a debtor by judgment, a
debtor under receivership or is ordered by the government or any regulatory body to
suspend its business either in whole or in part, for purposes of protecting the asset of its
members and customers of its members or the settlement and delivery system, the
provisions of Section 43, Section 45, and Section 46 of the Derivatives Act B.E. 2546
shall apply mutatis mutandis to the clearing house and asset received by or had in
possession of the clearing house under Section 223/3.
SECTION 224. In cases where the operation of a clearing house, a securities depository
center or a securities registrar is undertaken by the Securities Exchange, no license from the
SEC shall be required. In this regard, the Securities Exchange shall operate such businesses
in accordance with the rules, conditions and procedures as specified in the notification of the
Capital Market Supervisory Board under Section 223.4
The word "Securities Exchange" referred to in the first paragraph and further referred to in
this Division shall include any company established by the Securities Exchange with not less
than seventy-five percent of total shares sold held by the Securities Exchange.
SECTION 225. Where securities are deposited with the Securities Exchange, the
depositor shall prepare a list of securities holders, whose securities have been deposited with
the Securities Exchange, in accordance with the rules and procedures as specified by the
Securities Exchange. After the Securities Exchange has accepted the deposit of such
securities, the Securities Exchange may accept the transfer of such deposited securities into
its own name and shall hold such securities for the depositor or for any customer who is the
owner of such securities.
Securities which are in the name of the Securities Exchange in accordance with the first
paragraph shall be presumed to be securities held by the Securities Exchange on behalf of
those persons according to type, category and amount as appear in the list of names prepared
by the depositor.
On the closing date of the register of the company which issues securities, the Securities
Exchange shall collect the accounts of all deposited securities and the name lists of the
holders of such securities, which existed on the date prior to first closing day, from the
depositor of such securities and deliver them to the registrar of the issuing company. Such
lists shall be deemed as a part of the securities register, except for the names of those persons
to whom the registrar of the issuing company has notified objection within three business
days from the receipt of such lists, on the ground that the holding of securities by such
persons is contrary to the law or any restriction on transferability which have been registered
in accordance with the law.
SECTION 226. Upon having submitted the application to register the transfer of securities
certificates into the name of the Securities Exchange to hold securities on behalf of other
persons in accordance with the first paragraph of Section 225 as well as the delivery of the
securities certificates to the company which issues securities, the Securities Exchange may
submit the request to the issuing company to provide a receipt in place of securities
certificates. Such receipt shall have the particulars in the form specified by the Securities
Exchange. In such event, it shall be deemed that securities certificates have been issued by
the issuing company.
SECTION 227. Any securities owner who has deposited securities with the Securities
Exchange may request the Securities Exchange to issue the securities certificates in his own
name by submitting an application in accordance with the form specified by the Securities
Exchange.
Upon receiving the application referred to in the first paragraph, the Securities Exchange
shall notify the company which issues securities, of the name of the person who is the owner
of such securities, and the issuing company so notified shall enter the name of the securities
owner in the register of the company as well as issue new securities certificates, in the name
of such securities owner.
In submitting the application referred to in the first paragraph, if the owner of the securities is
a depositor who does not directly deposit such securities with the Securities Exchange, the
owner of such securities shall apply through the depositor of such securities.
SECTION 228. The transfer of securities from the account of a securities depositor to the
account of another securities depositor may be made only when the Securities Exchange has
received a request from the securities depositor or when the clearing house of the Securities
Exchange has notified the Securities Exchange, at the end of each trading day, of the delivery
of the securities between members who have traded the securities in the Securities
Exchange.
4The transfer of securities referred to in the first paragraph or within the account of a
securities depositor shall be deemed legally valid if undertaken in accordance with the rules,
conditions and procedures as specified in the notification of the Capital Market Supervisory
Board.
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4. indicated amendment by the Securities and Exchange Act (No. 4) B.E. 2551 |
