The Securities (Central Depository, Clearing and Settlement) Act 1996 provides the legal framework for the operations of the CDS.
The Securities (Central Depository, Clearing and Settlement) Act 1996 includes provisions for:
Depository, clearing and settlement services
The development of systems in which securities can be issued and transferred without any certificate
The Bank of Mauritius to act as the clearing bank for the settlement of funds;
The establishment and maintenance of a Guarantee Fund
Duty of confidentiality as regards information recorded in the CDS system
The CDS is regulated by the Financial Services Commission under the Securities (Central Depository, Clearing and Settlement) Act 1996, the Securities Act 2005 and the Financial Services Act 2007. The day-to-day activities of the CDS are governed by the CDS Rules and Procedures. The CDS Rules and any amendment thereto are approved by the Financial Services Commission.
The recent promulgation of the Securities Act 2005 does not have any major impact on the CDS since the Securities (Central Depository, Clearing and Settlement) Act 1996 and the existing CDS Rules and Procedures continue to remain in force.
