59. Establishment of systems for transfer of funds and transfer and settlement of scripless securities

for the transfer of funds by and between the Central

for the transfer and settlement of scripless securities by and between the Central Bank and direct participants;

for the settlement of payment obligations in respect of transfer and settlement of scripless securities under paragraph (b); and

for the maintenance of a depository for the recording of title to scripless securities of the Central Bank, of direct participants, and in the case of dealer direct participants, of their customers. The Central Bank may make such rules as it may consider necessary in relation to the depository.

The Central Bank shall provide facilities for clearance transactions among licensed commercial banks operating in Sri Lanka or any other financial institutions as may be approved by the Governing Board.

The reserves maintained by licensed commercial banks in the Central Bank or the funds maintained in the

for the provision of intra-day credit against the collateral of securities to the participants and the conditions attaching to the provision of such credit;

for the appointment of the Central Bank as a certification authority for the purpose of issuing certificates to participants under any law applicable to the appointment of certification authorities in respect of electronic signatures;

for the formulation and adoption of a code of conduct for participants;

for the authentication of transactions carried out electronically;

for the Central Bank, if it considers necessary in the interest of the system, to cease or suspend the operation of the system, or to withdraw or suspend the privileges or rights of any participant or category of participants or to suspend or revoke the membership in the system of a participant;

for the appointment of auditors or inspectors for the auditing or inspection of the operating systems of participants in respect of the settlement system;

for the payment of charges and fees to the Central

in the case of a transaction involving funds transfer only, upon the settlement account of the participant requesting the funds transfer being debited;

in the case of a transaction involving a securities transfer only, upon the securities account of the participant requesting the securities transfer being debited; or

in the case of a transaction involving both a funds transfer and a securities transfer, upon debiting the settlement account or the securities account of a participant requesting the funds transfer or the securities transfer as the case may be, whichever occurs earlier, and notwithstanding anything to the contrary in any other written law, such payment or transfer shall not be required to be reversed, repaid or set aside, and subject to the provisions of Articles 126 and 140 of the Constitution, no court shall order such payment or transfer to be rectified or stayed.

Any scripless securities issued under this Act or the Local Treasury Bills Ordinance (Chapter 417) or the

A transfer, pledge, encumbrance, loan, borrowing or transaction effected under paragraph (a) shall be valid and effectual notwithstanding anything in any other written law, and the claim of a participant of the system on any scripless securities posted as collateral in accordance with those rules or regulations as may be applicable shall have priority over the claims on such scripless securities of a person who is not a participant of the system.

the Central Bank may do anything permitted or required by the rules of the system in order to net obligations incurred on or before the day on which the proceedings commenced;

the obligations that are netted under the rules of the system shall be disregarded in the proceedings;

the netting made by the Central Bank and any payment made by the participant under the rules of the system shall not be voidable in the proceedings.

for financial institutions other than licensed commercial banks, as may be approved by the

for financial institutions other than licensed commercial banks, as may be approved by the

Any or all of the functions referred to in paragraph (d) of subsection (1), paragraph (a) of subsection (3) and subsection (13) may be carried out by a body corporate authorized for the purpose by the Governing Board, subject to such terms and conditions as may be imposed by the

The body corporate referred to in paragraph (a) may maintain an account with the Central Bank for the purpose of carrying out such functions.