Functions
- Safekeeping Securities may be in dematerialized form, book-entry only form (with one or more "global" certificates), or in physical form immobilized within the CSD.
- Deposit and Withdrawal Supporting deposits and withdrawals involves the relationship between the transfer agent and/or issuers and the CSD. It also covers the CSD's role within the underwriting process or listing of new issues in a market.
- Dividend, interest, and principal processing, as well as corporate actions including proxy voting Paying and transfer agents, as well as issuers are involved in these processes, depending on the level of services provided by the CSD and its relationship with these entities.
- Other services CSDs offer additional services aside from those considered core services. These services include Securities Lending and Borrowing, Matching, and Repo Settlement
- Pledge - Central depositories provide pledging of share and securities. Every country require to provide legal framework to protect the interest of the pledgor and pledgee.
However, there are risks and responsibilities regarding these services that must be taken into consideration in analyzing and evaluating each market on a case-by-case basis.
Read more about this topic: Central Securities Depository
Famous quotes containing the word functions:
“One of the most highly valued functions of used parents these days is to be the villains of their children’s lives, the people the child blames for any shortcomings or disappointments. But if your identity comes from your parents’ failings, then you remain forever a member of the child generation, stuck and unable to move on to an adulthood in which you identify yourself in terms of what you do, not what has been done to you.”
—Frank Pittman (20th century)
“Let us stop being afraid. Of our own thoughts, our own minds. Of madness, our own or others’. Stop being afraid of the mind itself, its astonishing functions and fandangos, its complications and simplifications, the wonderful operation of its machinery—more wonderful because it is not machinery at all or predictable.”
—Kate Millett (b. 1934)
“Adolescents, for all their self-involvement, are emerging from the self-centeredness of childhood. Their perception of other people has more depth. They are better equipped at appreciating others’ reasons for action, or the basis of others’ emotions. But this maturity functions in a piecemeal fashion. They show more understanding of their friends, but not of their teachers.”
—Terri Apter (20th century)