ABOUT CSD
A
pre-study concerning the establishment of a central securities register and
a clearing and settlement system in the Republic of Macedonia was started in
1999 as a component of the Government's program for the improvement and
development of the Macedonian capital market. The improvement of the
infrastructure for increasing national as well as international investors’
confidence in the Macedonian capital market and financial sector in general,
were among the preconditions for the World Bank and IMF’s programs of
financial support to the Republic of Macedonia.
In
accordance with the Securities Law, article 172, the Government of Republic
of Macedonia, with the Decision no7 – 167/1 from 20.02.2001, authorized
the Payment Operational
Service to undertake all necessary measures and activities for
implementation of the Central Securities Depository.
The purpose of CSD is to establish central securities register comprising all active shares and bonds in Republic of Macedonia. This will lead to better access and distribution of information about the issuers and securities to:
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Investors
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Foreign investors
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Holders of restrictive rights
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Issuers
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Brokers
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Macedonian Stock Exchange
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Pledge Register
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Other authorized institutions in accordance with the law.
At the end of November 2001 existing shares started to be converted into dematerialised shares, registered in securities accounts for each investor. The basis for this conversion is the shareholders book of each stock company. Also the existing bonds issue (the citizen’s foreign currency deposits) was transferred from the previous Register of Bonds to the securities register of CSD, and new securities accounts for each bondholder were established. After dematerialization of existing securities, the securities register of CSD is the only legally valid evidence of issuance and ownership of securities. The rights and obligations of securities commence from the moment they are registered in the CSD. CSD is also responsible for the settlement of trades concluded on the Macedonian Stock Exchange. This allows for a secure settlement, based on the Delivery versus Payment principle, between buyers and sellers of securities.The dematerialization and central registration of all securities in Macedonia increases the protection of investors’ rights and improves the reliability of and the confidence in the emerging Macedonian financial market.
Copyright © 2004 CSD