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As enacted
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Part II · Payment, Clearing and Settlement Systems and Money Services

6. Securities accounts and securities account holders

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

The Central Bank shall maintain securities accounts for each direct participant and for each customer of a dealer direct participant. A person may have more than one securities account. A securities account may be a designated securities account.

(2)

A securities account holder may exercise all the rights that comprise the security credited to his or her securities account, or designated securities account, subject to any applicable adverse claim :

Provided however, a customer securities account holder may deal with his or her securities account as provided in this section only through a dealer direct participant authorized to act in that customer’s securities account :

Provided further that, no remedy against the account holder will be prejudiced where the exercise of rights under this section is in breach of a contract or is otherwise in violation of the rights of any other person.

(3)

All communications and payments relating to a securities account shall be submitted or made to or by the

Central Bank exclusively by or to—

(a)

direct participants, in respect of own securities accounts ; and

(b)

dealer direct participants, in respect of both own accounts and on securities accounts of their customers in respect of which they are authorized to act.

Each disposition shall be recorded directly in the securities accounts of the transferor and transferee of the security and not pass through the own account of a dealer direct participant authorized to act on behalf of a customer who is the transferor or transferee.

(4)

The provisions contained in this section shall be read consistently with the provisions of the Local Treasury Bills

Ordinance (Chapter 417) and the Registered Stocks and

Securities Ordinance (Chapter 420) respectively. The provisions contained in such Ordinances shall prevail in the event of an inconsistency.

Read on from s 7

Part III

Read on from Part III

Part IV

Miscellaneous Provisions

Read on from Part IV