CMA approves procedures of dealing with Edaa accounts

The Capital Market Authority (CMA) on Oct. 1 has approved the procedures of dealing with the Securities Depository Center (Edaa) accounts when a custody member ceases or plans to end its activities, Tadawul said in a statement.

The procedures, which came into effect today, Oct. 7, introduced provisions to deal with Edaa accounts and the securities deposited, when the custody member ceases or intends to stop its activities and terminate its connection with the depository and settlement system at Edaa.

The new provisions apply in the following cases:

- Custody member default.

- Custody membership cancellation by Edaa or the CMA.

- Custody members’ merger and acquisition.

- Custody membership cancellation by Edaa or the CMA.

- Custody membership suspension by Edaa or by the CMA.