SCOPE, STRUCTURE, OWNERSHIP, CAPITAL,
REGULATION AND AUDIT
The purpose of this section is to
understand the ownership structure and financial strength of your
institution, as well as the level of regulatory and operational
supervision to which it is subject.
Scope, Structure, Ownership
|
| 1 |
Rule 17f-7, by reference to Rule 17f-4, requires
that, for a depository to be eligible to hold securities of U.S.
registered investment companies (such depositories hereinafter referred to
as "Eligible Securities Depositories"), the depository must be a "system
for the central handling of securities where all securities of any
particular class or series of any issuer deposited within the system are
treated as fungible and may be transferred or pledged by bookkeeping entry
without physical delivery of the securities."
In particular, are
all securities of a particular class or series of any issuer that are
deposited in your institution treated as fungible, and can they be
transferred or pledged by bookkeeping entry without physical delivery of
the securities? 
Yes
No - then answer 1a
Other - then
answer 1a
1a. Please
explain:
|
| 2 |
Rule 17f-7 also requires that an Eligible
Securities Depository "acts as or operates a system for the central
handling of securities or equivalent book-entries in the country where it
is incorporated," or "acts as or operates a transnational system for the
central handling of securities or equivalent book-entries."
Does
your institution: (Choose all that apply.)
Act as or operate a system for the central handling of
securities or equivalent book-entries in the country where it is
incorporated? - then answer
2b
Act as or operate a
transnational system for the central handling of securities or equivalent
book-entries? - then answer
2b
Act in another
capacity with respect to the handling of securities or equivalent
book-entries? - then answer
2a
Not
applicable - then answer
2a
Other - then answer 2a
2a.
Please explain:
2b.
Please specify the types of securities for which you act as or operate
a system for the central handling of securities or equivalent
book-entries:
Equities,
Corporate Debts and Treasury Bills
Discussions have started with
the central bank for the admittance of Government Bonds in the
CDS.
|
| 3 |
What type of legal entity is the institution?
(Choose all that apply.)
Public Company
Private Company
Central
Bank (or part thereof)
Stock
Exchange (or part thereof)
Other - then answer
3a
3a. If other, please
explain:
|
| 4 |
Is the institution operated as a "for profit" or a
"not for profit" organization?
For
profit
Not for
profit
Other - then answer
4a
4a. If other, please
explain:
|
| 5 |
Please provide the names of the owners and their
ownership interest percentages.
Stock Exchange of Mauritius -
51%
Fincorp Investments Ltd - 3.33%
Promotion and Development Ltd -
6.67%
Mauritius Commercial Bank Ltd - 13.33%
Mauritius Computing
Services Ltd - 0.33%
State Bank of Mauritius Ltd - 3.33%
United
Docks Ltd - 1.67%
Swan Insurance Co. Ltd - 3.33%
State Investment
Corporation Ltd - 1.33%
Harel Mallac Co. Ltd - 1.67%
Rogers Co. Ltd
- 13.33%
Automatic Systems Ltd - 0.67%
|
| 6 |
What is the date of establishment of the
depository? (DD/MM/YY)
01/07/1996
|
| 7 |
What is the date that the depository's operations
began? (DD/MM/YY)
31/01/1997
|
| 8 |
Under what regulation or statute is the depository
established and governed?
Securities (Central Depository,
Clearing and Settlement) Act 1996
Constitution of the Central
Depository & Settlement Co. Ltd
Securities Act
2005
- then answer
8a
8a. Is the regulation or statute
electronically available?
Yes - then answer
8b
No
8b. If regulation or statute
is electronically available, please supply web address or upload
document.
8c. If more than
one link or document, please supply additional information
here:
8d. If more than
one link or document, please supply additional information
here:
8e. If more than
one link or document, please supply additional information
here:
8f. If more than
one link or document, please supply additional information
here:
8g. Please provide
details of the structure and composition of your Board together with their
industry experience and responsibilities in governing the depository.
What are the qualifications to become a board member?
Composition of the Board
- 8
directors appointed by the Stock Exchange of Mauritius (SEM)
- A
director appointed by the Minister to whom the responsibility of Financial
Services is attributed
- A director appointed by the Minister to whom
the responsibility of Finance is attributed
- A director appointed by
the Bank of Mauritius
- 3 directors appointed in General Meeting by
ordinary resolution (SEM is not entitled to vote on any resolution
appointing such 3 directors)
- 1 executive director
Directors
are generally persons holding executive positions in the financial
services sector. The composition of the board seeks to achieve the
following blend of knowledge, skills and experience needed by the company
to discharge its responsibilities effectively: IT; Legal; Risk Management;
Banking; Finance/Investment; Accountancy; Economics; Company Secretary;
Stock Broking.
8h. What are the election
procedures?
See
8g.
Ordinary resolution at General
Meeting
8i. What is maximum length of time
they can serve as a board member?
Term of office is one year but
Directors are eligible for re-election or
re-appointment
8j. Who is responsible for
regulating the board members?
Corporate Governance
Committee
8k. What is the extent of their
voting powers?
Every
Director has one vote
The Chairperson has a casting vote
A
resolution of the Board shall be passed if it is agreed to by a majority
of Directors present.
|
| 9 |
Rule 17f-7 requires that an Eligible Securities
Depository "is regulated by a foreign financial regulatory authority as
defined under section 2(a)(50) of the Act", with section 2(a)(50)
establishing that "'foreign financial regulatory authority' means any (A)
foreign securities authority, (B) other governmental body or foreign
equivalent of a self-regulatory organization empowered by a foreign
government to administer or enforce its laws relating to the regulation of
fiduciaries, trusts, commercial lending, insurance, trading in contracts
of sale of a commodity for future delivery, or other instruments traded on
or subject to the rules of a contract market, board of trade or foreign
equivalent, or other financial activities, or (C) membership organization
a function of which is to regulate the participation of its members in
activities listed above."
Who regulates the activities of the
depository? (Choose all that apply.)
A governmental body or regulatory organization empowered to
administer or enforce laws related to securities matters.
A governmental body or
self-regulatory organization empowered to administer or enforce laws
related to other financial activities.
A membership organization which regulates the participation of its
members in securities matters or other financial activities.
Other. - then
answer 9a
9a. Please
explain:
|
| 10 |
Please provide the name of the regulatory
authority(ies) identified in question 9:
Financial Services
Commission
|
| 11 |
Rule 17f-7 requires that an Eligible Securities
Depository "is subject to periodic examination by regulatory authorities
or independent accountants."
Is the depository subject to periodic
examination by: (Choose all that apply.)
Regulatory authorities?
Independent accountants?
Other. - then answer
11a
11a. Please explain:
|
| 12 |
What enforcement actions are available to the
regulatory authority(ies) for breach of applicable statute or regulatory
requirements? (Choose all that apply.)
Name of Authority
(1):
Financial
Services Commission
- then answer
12a
12a.
Fines.
Restrictions on depository activities.
Suspension of depository activities.
Termination of depository
activities.
Other. - then answer
12b
12b. Please explain:
Under the new Securities Act 2005,
the Financial Services Commission has the power to give directions to
comply with statute and regulatory requirements. The Financial Services
Commission may also apply to the Court for orders directing or securing
compliance with the relevant provisions of the Securities (CDS) Act 1996,
regulations or rules in such manner as the Court shall deem
fit.
12c. Name of Authority
(2):
Registrar of
Companies
- then answer
12d
12d.
Fines.
Restrictions on
depository activities.
Suspension
of depository activities.
Termination of depository activities.
Other. - then answer
12e
12e. Please explain:
|
| 13 |
Has there been any use of such enforcement actions
in the last three years?
Yes - then answer 13a
No
Other - then
answer 13a
13a. If yes or other, please
explain:
|
Capital |
| 14 |
Are annual financial statements publicly
disclosed?
Yes - then answer
14a
No - then answer
14c
Other - then answer
14h
14a. If yes, the AGC requests a
copy of the institution's annual report. Is the annual report available
electronically?
Yes - then answer
14b
No. (If
No, please send a copy of the annual report to the Washington office of
Baker & McKenzie, 815 Connecticut Ave, NW, Washington, DC 20006, Attn:
Robin Truesdale)
14b. If yes, please
upload the document here or insert web link:
14f. If more than
one document for 14b, please upload the additional document here or insert
web link:
14g. If more than
one document for 14b, please upload the document here or insert web
link:
14c. If no, and
annual report and/or financial statements are not disclosed, please state
your share capital, reserves, and retained earnings (or equivalents as
determined under local accounting standards).
Share
Capital:
- then answer 14d
14d.
Reserves:
- then answer 14e
14e.
Retained Earnings:
14h.
If other, please explain:
|
Audit
With respect
to the depository's financial audit |
| 15 |
Do internal auditors perform a financial audit?
(Choose all that apply.)
Yes - then answer
15a
No >> take you to
16
Other - then answer 15g
15a. If
Yes, which department in your depository handles the financial
audit?
- then answer 15b
15b.
How frequently does the financial audit occur? (Choose one.)
Two or more times a
year - then answer
15d
Annually - then answer
15d
Less
than Annually - then answer
15c
Other.
Please explain in 15c. - then answer
15c
15c. If less than annually or
other, please explain:
15d.
Are results of the financial audit publicly available?
Yes - then answer 15e
No - then
answer 15e
15e. Please select the
statement that most accurately characterizes the results of the last
financial audit: (Choose one.)
No material exceptions
found.
Minor exceptions found. -
then answer 15f
Material exceptions found. -
then answer 15f
Other - then answer
15f
15f. If minor, material or "other"
exceptions were found, what actions were taken? Please
describe:
15g.
If other, please explain:
15h.
Please list the date of your last financial audit performed by internal
auditors and the period that the audit covered:
|
| 16 |
Do independent external auditors perform a
financial audit? (Choose all that apply.)
Yes - then answer
16a
No >> take you to 17
Other - then answer
16h
16a. If yes, what is the name of
the accountant/accounting firm that handles the financial
audit?
Lamusse Sek Sum
& Co
(A member of PKF Worldwide)
- then answer 16b
16b.
How frequently does the financial audit occur? (Choose one.)
Two or more times a
year - then answer
16d
Annually - then answer
16d
Less
than Annually - then answer
16c
Other.
Please explain in 16g. - then answer
16g
16c. If less than annually, please
explain:
16d.
Are results of the financial audit publicly available?
Yes - then answer
16e
No - then answer
16e
Other - then answer
16i
16e. Please select the statement
that most accurately characterizes the results of the last financial
audit: (Choose one.)
No material
exceptions found.
Minor exceptions found. -
then answer 16f
Material exceptions found. -
then answer 16f
Other - then answer
16f
16f. If minor, material or "other"
exceptions were found, what actions were taken? Please
describe:
16i.
If other, please explain:
16g.
If other, please explain:
16h.
If other, please explain:
16j.
Please list the date of your last financial audit performed by
independent external auditors and the period that the audit
covered:
Date of last
financial audit: August 2007
Period covered: 1 July 2006 to 30 June
2007
|
| 17 |
Do regulatory authorities perform a financial
audit? (Choose all that apply.)
Yes - then answer
17a
No >> take you to
18
Other - then answer 17h
17a. If
Yes, what is the name of the regulatory authority that handles the
financial audit?
- then answer 17b
17b.
How frequently does the financial audit occur? (Choose one.)
Two or more times a
year - then answer
17d
Annually - then answer
17d
Less
than Annually - then answer
17c
Other.
Please explain in 17g. - then answer
17g
17c. If less than annually, please
explain:
17d.
Are results of the financial audit publicly available?
Yes - then answer 17e
No - then
answer 17e
17e. Please select the
statement that most accurately characterizes the results of the last
financial audit: (Choose one.)
No material exceptions
found.
Minor exceptions found. -
then answer 17f
Material exceptions found. -
then answer 17f
Other - then answer
17f
17f. If minor, material or "other"
exceptions were found, what actions were taken? Please
describe:
17g.
If other, please explain:
17h.
If other, please explain:
17i.
Please list the date of your last financial audit performed by
regulatory authorities and the period that the audit covered:
|
| 18 |
Do any other auditors perform a financial audit?
(Choose all that apply.)
Yes - then answer
18a
No >> take you to
19
Other - then answer 18h
18a. If
Yes, please explain and identify by name?
- then answer 18b
18b.
How frequently does the financial audit occur? (Choose one.)
Two or more times a
year - then answer
18d
Annually - then answer
18d
Less
than Annually - then answer
18c
Other.
Please explain in 18g. - then answer
18g
18c. If less than annually, please
explain:
18d.
Are results of the financial audit publicly available?
Yes - then answer
18e
No - then answer
18e
18e. Please select the statement
that most accurately characterizes the results of the last financial
audit: (Choose one.)
No material
exceptions found.
Minor exceptions found. -
then answer 18f
Material exceptions found. -
then answer 18f
Other - then answer
18f
18f. If minor, material or "other"
exceptions were found, what actions were taken? Please
describe:
18g.
If other, please explain:
18h.
If other, please explain:
18i.
Please list the date of your last financial audit performed by any
other auditors and the period that the audit covered:
|
With respect to the
depository's operational audit |
| 19 |
Do internal auditors perform an operational audit?
(Choose all that apply.)
Yes - then answer
19a
No >> take you to 20
Other - then answer
19g
19a. If Yes, which department in
your depository handles the operational audit?
The Finance and Administration
Department
- then answer
19b
19b. How frequently does the
operational audit occur? (Choose one.)
Two or more times a
year
Annually
Less than Annually - then
answer 19c
Other. Please explain in 19c. - then answer 19c
19c. If
less than annually or other, please explain:
19d.
Are results of the operational audit publicly available?
Yes - then answer 19e
No - then answer 19e
19e.
Please select the statement that most accurately characterizes the
results of the last operational audit: (Choose one.)
No material
exceptions found.
Minor exceptions found. -
then answer 19f
Material exceptions found. -
then answer 19f
Other - then answer
19f
19f. If minor, material or "other"
exceptions were found, what actions were taken? Please
describe:
19g.
If other, please explain:
19h.
Please list the date of your last operational audit performed by
internal auditors and the period that the audit covered:
Date of last operational audit -
August 2007
Period covered - July 2007
Internal operational audits
are performed on a monthly basis.
|
| 20 |
Do independent external accountants perform an
operational audit? (Choose all that apply.)
Yes - then answer
20a
No >> take you to 21
Other - then answer
20h
20a. If Yes, what is the name of
the accountant/accounting firm that handles the operational
audit?
Lamusse Sek Sum
& Co
(A member of PKF Worldwide)
- then answer 20b
20b.
How frequently does the operational audit occur? (Choose one.)
Two or more times a
year - then answer
20d
Annually - then answer
20d
Less
than Annually - then answer
20c
Other.
Please explain in 20g. - then answer
20g
20c. If less than annually, please
explain:
20d.
Are results of the operational audit publicly available?
Yes - then answer
20e
No - then answer
20e
20e. Please select the statement
that most accurately characterizes the results of the last operational
audit: (Choose one.)
No material
exceptions found.
Minor exceptions found. -
then answer 20f
Material exceptions found. -
then answer 20f
Other - then answer
20f
20f. If minor, material or "other"
exceptions were found, what actions were taken? Please
describe:
20g.
If other, please explain:
20h.
If other, please explain:
20i.
Please list the date of your last operational audit performed by
independent external accountants and the period that the audit covered:
Date performed: August
2007
Period covered: 1 June 2006 - 30 July
2007
|
| 21 |
Do regulatory authorities perform an operational
audit? (Choose all that apply.)
Yes - then answer
21a
No >> take you to
22
Other - then answer 21h
21a. If
Yes, what is the name of the regulatory authority that handles the
operational audit?
- then answer 21b
21b.
How frequently does the operational audit occur? (Choose one.)
Two or more times a
year - then answer
21d
Annually - then answer
21d
Less
than Annually - then answer
21c
Other.
Please explain in 21g. - then answer
21g
21c. If less than annually, please
explain:
21d.
Are results of the operational audit publicly available?
Yes - then answer 21e
No - then
answer 21e
21e. Please select the
statement that most accurately characterizes the results of the last
operational audit: (Choose one.)
No material exceptions
found.
Minor exceptions found. -
then answer 21f
Material exceptions found. -
then answer 21f
Other - then answer
21f
21f. If minor, material or "other"
exceptions were found, what actions were taken? Please
describe:
21g.
If other, please explain:
21h.
If other, please explain:
21i.
Please list the date of your last operational audit performed by
regulatory authorities and the period that the audit covered:
|
| 22 |
Do any other auditors perform an operational audit?
(Choose all that apply.)
Yes - then answer
22a
No >> take you to
23
Other - then answer 22h
22a. If
Yes, please explain and identify by name:
- then answer 22b
22b.
How frequently does the operational audit occur? (Choose one.)
Two or more times a
year - then answer
22d
Annually - then answer
22d
Less
than Annually - then answer
22c
Other.
Please explain in 22g. - then answer
22g
22c. If less than annually, please
explain:
22d.
Are results of the operational audit publicly available?
Yes - then answer 22e
No - then
answer 22e
22e. Please select the
statement that most accurately characterizes the results of the last
operational audit: (Choose one.)
No material exceptions
found.
Minor exceptions found. -
then answer 22f
Material exceptions found. -
then answer 22f
Other - then answer
22f
22f. If minor, material or "other"
exceptions were found, what actions were taken? Please
describe:
22g.
If other, please explain:
22h.
If other, please explain:
22i.
Please list the date of your last operational audit performed by any
other auditors and the period that the audit covered:
|
PARTICIPANTS AND
PARTICIPATION
The purpose of the section is to understand
issues relating to participation in the depository, including eligibility
requirements, conditions of participation, and supervision of
participants.
Participant Eligibility Requirements |
| 23 |
What types of entities are eligible to become
participants and how many of each type are there currently? (Choose all
that apply.)
Banks - then answer 23a
Brokers - then answer
23b
Individuals - then answer
23c
Foreign
Institutions - then answer
23d
Other
entities. - then answer
23e
Not
applicable
23a. How many Bank participants are
there currently?
5
- then answer 23g
23g.
Please select the features included in the eligibility requirements for
Banks. (Choose all that apply.)
Financial Thresholds - then answer
23h
Regulatory
Oversight - then answer
23h
Market
Experience - then answer
23h
Other. Please explain
in 23q. - then answer
23q
23h. Where can a description of the
specific eligibility requirements for Bank participants be
found?
CDS Rules 2.1.1,
2.1.2, 2.1.3, 2.1.3.2 and The Schedule of Financial Resource Requirements
- Bank participants should possess a valid banking license issued by the
Bank of Mauritius (Central Bank)
23q.
Please explain:
23b.
How many Broker participants are there currently?
12
- then answer 23i
23i.
Please select the features included in the eligibility requirements for
Brokers. (Choose all that apply.)
Financial Thresholds - then answer
23j
Regulatory
Oversight - then answer
23j
Market
Experience - then answer
23j
Other. Please explain
in 23r. - then answer
23r
23j. Where can a description of the
specific eligibility requirements for Broker participants be
found?
CDS Rules 2.1.1,
2.1.2, 2.1.3, 2.1.3.2 and The Schedule of FInancial Resource Requirements.
Regulatory Oversight - Stockbroking companies should possess a license
issued by the Financial Services Commission (the regalutory Body) and be
members of the Stock Exchange of
Mauritius
23r. If other, please
explain:
23c.
How many Individual participants are there currently?
- then answer 23k
23k.
Please select the features included in the eligibility requirements for
Individual participants. (Choose all that apply.)
Financial Thresholds - then answer
23l
Regulatory
Oversight - then answer
23l
Market
Experience - then answer
23l
Other. Please explain
in 23t. - then answer
23t
23l. Where can a description of the
specific eligibility requirements for Individual participants be
found?
23t.
If other, please explain:
23d.
How many Foreign Institution participants are there
currently?
0
- then answer 23m
23m.
Please select the features included in the eligibility requirements for
Foreign Institution participants. (Choose all that apply.)
Financial Thresholds - then answer
23n
Regulatory
Oversight - then answer
23n
Market
Experience - then answer
23n
Other. Please explain
in 23u. - then answer
23u
23n. Where can a description of the
specific eligibility requirements for Foreign Institution participants be
found?
CDS Rules 2.1.1,
2.1.2, 2.1.3
23u. If other, please
explain:
23e.
If you have selected "Other entities" above, please
explain:
Government
Institutions
- then answer
23f
23f. Indicate how many "Other
entities" are currently participants?
0
- then answer 23o
23o.
Please select the features included in the eligibility requirements for
the participants referred to above as "Other entities". (Choose all that
apply.)
Financial
Threshold - then answer
23p
Regulatory
Oversight - then answer
23p
Market
Experience - then answer
23p
Other. Please explain
in 23s. - then answer
23s
23p. Where can a description of the
specific eligibility requirements for participants describe above as
"Other entities" be found?
CDS Rules 2.1.1, 2.1.2,
2.1.3
23s. If other, please
explain:
|
| 24 |
Are participants required to contribute capital to
the depository that would result in ownership of the depository?
Yes - then answer 24a
No
Not applicable
Other - then answer 24b
24a. If
yes, what fixed amount is required or what formula is used to determine
the appropriate contribution level?
24b.
If other, please explain:
|
| 25 |
Are prospective participants subject to an initial
review and approval process regarding compliance with eligibility
requirements?
Yes
No
Not applicable
Other - then answer 25a
25a. If
other, please explain:
|
Conditions of participation
|
| 26 |
What governs the relationship between the
depository and the participants? (Choose all that apply.)
Relevant law and regulation
Standard participation contract
Established terms and conditions of
participation
By-laws of
the depository
Rules of
the depository
Other - then answer
26a
Not
applicable
26a. Please explain:
|
| 27 |
Rule 17f-7 requires that an Eligible Securities
Depository "holds assets for the custodian that participates in the system
on behalf of the Fund under safekeeping conditions no less favorable that
the conditions that apply to other participants."
Please confirm
that assets of foreign investors held by custodians as participants in the
depository are held under safekeeping conditions no less favorable than
the conditions that apply to other participants.
Yes
No - then answer 27a
Not applicable - then answer 27a
Other - then
answer 27a
27a. If no, other or not
applicable, please explain:
|
| 28 |
How does the depository notify participants of
material changes to the conditions of participation? (Choose all that
apply.)
By e-mail
By telephone
By
public announcement
By press
release
Other - then answer
28a
Not
applicable
28a. Please explain:
By a formal letter to each
Participant
|
Governance of participants
|
| 29 |
Who enforces compliance with the depository's
conditions of participation? (Choose all that apply.)
The depository
The
exchange
The depository's
regulator
Other - then answer 29a
Not applicable
29a. Please
explain:
|
| 30 |
What enforcement actions are available to the
enforcement authority? (Choose all that apply.)
Fines
Restrictions on participation
Suspension of participation
Termination of participation
Other - then
answer 30a
Not
applicable
30a. Please explain:
|
| 31 |
Has there been any such enforcement actions in the
last three years?
Yes - then answer
31a
No
Not applicable
Other - then
answer 31b
31a. If yes, please explain,
including information relative to any suspensions of depository
participants:
Fines for
late submission of reports or instructions to the
CDS.
31b. If other, please
explain:
|
DEPOSITORY FUNCTIONALITY AND SERVICES; USE
OF AGENTS
Certain functionalities and services reduce risk
to an investor if provided in an efficient manner. The purpose of this
section is to identify those functionalities that may potentially be
offered by depositories and clearing systems around the world, and
ascertain whether they are offered by your institution.
General
|
| 32 |
For which of the following security types do you
serve as a depository or clearing system? (Choose all that
apply.)
Government
Securities - then answer
32b
Equities - then answer
32c
Corporate
Bonds - then answer 32d
Corporate Money Market
Instruments - then answer
32e
Others - then answer
32a
Not
applicable
32a. Please name the other security
types:
- then answer 32f
32f.
Please name other depositories and clearing systems that handle the
same securities listed in "Others" in your market:
32b.
Please name other depositories and clearing systems that handle
Government Securities in your market:
Bank of Mauritius (Central
Bank)
32c. Please name other depositories
and clearing systems that handle Equities in your market:
None
32d.
Please name other depositories and clearing systems that handle
Corporate Bonds in your market:
None
32e.
Please name other depositories and clearing systems that handle
Corporate Money Market Instruments in your market:
|
Government Securities
Settlements |
| 33 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
settlement of government securities?
(Please note that
responses to questions 33 through 42 should be consistent with questions
73 and 74.)
By
law - then answer
33a
By
market practice - then answer
33a
Neither/other - then answer
33b
Not
applicable
33a. What is the percentage
of the total market of government securities in your jurisdiction (either
volume or value) settled within your institution, exclusive of your links
with third parties?
Only government securities that are
traded on the Stock Exchange of Mauritius are settled within the CDS.The
trading of government securities on the Stock Exchange of Mauritius
started in December 2003. Only a very small percentage (less than 1%) of
the total market of government securities is traded on the stock exchange
and settled within the CDS.
The central bank, stock exchange,
Ministry of Finance, Financial Services Commission and CDS are currently
working towards the setting up of a Bond Market where all government and
corporate bonds will be traded.
33b. If
neither/other, please explain:
|
Government Securities
Safekeeping |
| 34 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
safekeeping of government securities? (Choose all that
apply.)
(Please note that responses to questions 33 through 42
should be consistent with questions 73 and 74.)
By law - then answer
34a
By market
practice - then answer 34a
Neither/other - then answer 34b
Not applicable
34a. What is the
percentage of the total market of government securities in your
jurisdiction (either volume or value) held in safekeeping within your
institution?
Only
government securities that are traded on the Stock Exchange of Mauritius
are held in safekeeping within the CDS.The trading of government
securities on the Stock Exchange of Mauritius started in December 2003.
Only a very small percentage (less than 1%) of the total market of
government securities is traded on the stock exchange and held in
safekeeping within the CDS.
34b. If
neither/other, please explain:
|
Equities Settlements |
| 35 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
settlement of equities? (Choose all that apply.)
(Please
note that responses to questions 33 through 42 should be consistent with
questions 73 and 74.)
By law - then answer
35a
By market
practice - then answer 35a
Neither/other - then answer 35b
Not applicable
35a. What is the
percentage of the total market of equities in your jurisdiction (either
volume or value) settled within your institution, exclusive of your links
with third parties?
100%
35b.
If neither/other, please explain:
|
Equities Safekeeping |
| 36 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
safekeeping of equities? (Choose all that apply.)
(Please
note that responses to questions 33 through 42 should be consistent with
questions 73 and 74.)
By law - then answer
36a
By market
practice - then answer 36a
Neither/other - then answer 36b
Not applicable
36a. What is the
percentage of the total market of equities in your jurisdiction (either
volume or value) held in safekeeping within your institution?
Official Market:
52.3% (volume)
63.8% (value)
Development & Enterprise
Market (DEM):
33.5% (volume)
32.3%
(value)
36b. If neither/other, please
explain:
|
Corporate Bonds Settlements
|
| 37 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
settlement of corporate bonds? (Choose all that
apply.)
(Please note that responses to questions 33 through 42
should be consistent with questions 73 and 74.)
By law - then answer
37a
By market
practice - then answer 37a
Neither/other - then answer 37b
Not applicable
37a. What is the
percentage of the total market of corporate bonds in your jurisdiction
(either volume or value) settled within your institution, exclusive of
your links with third parties?
100%
37b.
If neither/other, please explain:
|
Corporate Bonds Safekeeping
|
| 38 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
safekeeping of corporate bonds? (Choose all that
apply.)
(Please note that responses to questions 33 through 42
should be consistent with questions 73 and 74.)
By law - then answer
38a
By market
practice - then answer 38a
Neither/other - then answer 38b
Not applicable
38a. What is the
percentage of the total market of corporate bonds in your jurisdiction
(either volume or value) held in safekeeping within your
institution?
All the
bonds that were listed on the exchange and that were held in the CDS, have
been redeemed.
38b. If neither/other,
please explain:
|
Corporate Money Market
Instruments Settlements |
| 39 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
settlement of corporate money market instruments? (Choose all that
apply.)
(Please note that responses to questions 33 through 42
should be consistent with questions 73 and 74.)
By law - then answer
39a
By market
practice - then answer 39a
Neither/other - then answer 39b
Not applicable
39a. What is
the percentage of the total market of corporate money market instruments
in your jurisdiction (either volume or value) settled within your
institution, exclusive of your links with third parties?
39b.
If neither/other, please explain:
|
Corporate Money Market
Instruments Safekeeping |
| 40 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
safekeeping of corporate money market instruments? (Choose all that
apply.)
(Please note that responses to questions 33 through 42
should be consistent with questions 73 and 74.)
By law - then answer
40a
By market
practice - then answer 40a
Neither/other - then answer 40b
Not applicable
40a. What is
the percentage of the total market of corporate money market instruments
in your jurisdiction (either volume or value) held in safekeeping within
your institution?
40b.
If neither/other, please explain:
|
Other Eligible Securities
Settlements |
| 41 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
settlement of other eligible securities? (Choose all that
apply.)
(Please note that responses to questions 33 through 42
should be consistent with questions 73 and 74.)
By law - then answer
41a
By market
practice - then answer 41a
Neither/other - then answer 41c
Not applicable
41a. What is
the percentage of the total market of other eligible securities in your
jurisdiction (either volume or value) settled within your institution,
exclusive of your links with third parties?
- then answer 41b
41b.
Please provide description of the other securities:
41c.
If neither/other, please explain:
|
Other Eligible Securities
Safekeeping |
| 42 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
safekeeping of other eligible securities? (Choose all that
apply.)
(Please note that responses to questions 33 through 42
should be consistent with questions 73 and 74.)
By law - then answer
42a
By market
practice - then answer 42a
Neither/other - then answer 42c
Not applicable
42a. What is
the percentage of the total market of other eligible securities in your
jurisdiction (either volume or value) held in safekeeping within your
institution?
- then answer 42b
42b.
Please provide description of the other securities:
42c.
If neither/other, please explain:
|
| 43 |
Are there any activities performed by a third party
on behalf of the depository for the depository participants (e.g.,
vaulting of physical securities, registration, entitlement processing,
etc.)?
Yes - then answer 43a
No
Not applicable
Other - then answer 43g
43a. If
third parties are employed, please indicate which services they
supply:
- then answer 43b
43b. If
third parties are employed, does the depository assume liability for
losses incurred by participants as a result of the actions/inactions of
the third parties?
Yes - then answer 43c
No
43c. If you
acknowledge responsibility, please indicate whether your responsibility is
assumed (Choose all that apply.)
regardless of whether such loss was caused by any action or
inaction of the agent; - then answer
43d
if such loss was
caused by the agent's action or inaction and such action or inaction was
deemed to be negligence on the part of the agent; - then answer 43d
if such loss was caused by the agent's action or inaction and
such action or inaction was deemed to be gross negligence on the part of
the agent; - then answer
43d
if the loss was
caused by the willful default or other willful conduct on the part of the
agent; - then answer 43d
Other -
then answer 43h
43d. If you acknowledge
responsibility for agents, your responsibility is assumed for losses
(Choose all that apply.)
without limit.
which
are not consequential losses.
subject to a monetary limit not based on insurance
limits. - then answer 43e
subject to a monetary limit based on
insurance limits. - then answer
43f
Other - then answer
43i
43e. Please specify
limit:
43f.
Please specify limit:
43i.
If other, please explain:
43h.
If other, please explain:
43g.
If other, please explain:
|
| 44 |
Has any participant suffered any losses in the past
three years due to the depository's performance?
Yes - then answer 44a
No
Not applicable
Other - then answer 44m
44a. If
yes, please select all of the following in which loss has occurred. You
will be prompted to enter the number of instances and total loss in USD
thereafter. (Choose all that apply.)
Corporate Action - then answer
44b
Settlement Process -
Securities - then answer
44c
Settlement Process -
Cash - then answer 44d
System Outage - then answer 44e
Other - then answer
44f
44b. Corporate Action. Please
specify number of instances:
- then answer 44g
44g.
Corporate Action. Please specify total loss in USD.
44c.
Settlement Process - Securities. Please specify number of
instances:
- then answer 44h
44h.
Settlement Process - Securities. Please specify total loss in
USD:
44d.
Settlement Process - Cash. Please specify number of
instances:
- then answer 44i
44i.
Settlement Process - Cash. Please specify total loss in
USD:
44e.
System Outage. Please specify number of instances:
- then answer 44j
44j.
System Outage. Please specify total loss in USD:
44f.
If Other, please explain:
- then answer 44k
44k.
For Other, please specify number of instances:
- then answer 44l
44l.
For Other, please specify total loss in USD:
44m.
If other, please explain:
|
Other Services |
| 45 |
Who accepts cash deposits for depository
transactions? (Choose all that apply.)
Depository
Central
Bank
Banks appointed by
depository. - then answer
45a
Others - then answer
45b
Not
applicable
45a. Please name
banks:
45b.
If others, please explain:
Cash is deposited in the bank
accounts of participants. On settlement date, the participants' banks make
the cash available to the Central Bank for settlement based on
instructions issued by CDS.
|
| 46 |
Who processes cash clearing for depository
transactions? (Choose all that apply.)
Depository
Central Bank
Banks
appointed by depository. - then answer
46a
Others - then answer
46b
Not
applicable
46a. Please name banks appointed by
depository:
46b.
If others, please explain:
|
| 47 |
Who controls the movement of cash for cash
deposits? (Choose all that apply.)
Depository
Central
Bank
Banks appointed by
depository. - then answer
47a
Others - then answer
47b
Not
applicable
47a. Please name banks appointed by
depository:
47b.
If others, please explain:
Participants and their
banks
|
| 48 |
Who controls the movement of cash for cash
clearing? (Choose all that apply.)
Depository
Central Bank
Banks
appointed by depository. - then answer
48a
Others - then answer
48b
Not
applicable
48a. Please name banks appointed by
depository:
48b.
If others, please explain:
|
| 49 |
Please indicate services you provide. (Choose all
that apply.)
Information in advance on
corporate (annual or special) meetings in order that owners can
vote.
Tax assistance where
foreign holders may be entitled to tax relief at source or through a
claim.
In order to avoid fails,
an automatic securities lending facility - if requested - is provided
for: - then answer 49a
Collateral handling in support of
activities including securities lending, overdraft coverage, cash
management, repurchase agreements, etc. Please provide
details - then answer 49c
Same day turnaround settlements.
Information on distribution of new
issues (IPO, Privatization).
Other. - then answer
49d
Not
applicable
49a. Automatic securities lending
facility is provided for: (Choose all that apply.)
Brokers
Banks
Other Financial
Institutions
Other - then answer
49b
49b. If Other, please
explain:
49c.
Collateral Handling: Please provide details:
Pledging of securities held in the
depository at the request of holders and in favour of lending
institutions.
49d. If Other services,
please explain:
|
| 50 |
What procedures are in place for the collection of
corporate action entitlements? (Choose all that apply.)
Credited to the securities account on the day indicated below
regardless of whether actually collected by the depository on the
scheduled date - then answer
50a
Credited to
the securities account upon actual receipt by the depository.
Corporate action entitlements are handled
by an entity separate from the depository. - then answer 50c
Not applicable.
Other.
Please explain in 50d. - then answer
50d
50a. Credited to the securities
account: (Choose all that apply.)
On pay date.
On pay
date +1.
On pay date
+2.
Other. - then answer 50b
50b. If
other, please explain:
50c.
Name of entity:
50d.
If other, please explain:
|
| 51 |
What is the average percentage of entitlements that
have actually been collected by the depository when the credits are made
to the participant accounts?
Official Market: 52.3%
DEM:
33.5%
|
| 52 |
What procedures are in place for the collection of
interest and dividends? (Choose all that apply.)
Credited to the cash account on the day indicated below
regardless of whether actually collected by the depository on the
scheduled date - then answer
52a
Credited to the cash
account upon actual receipt by the depository.
Income and dividend collection is handled by an entity
separate from the depository. - then answer
52c
Not
applicable.
Other.
Please explain in 52d. - then answer
52d
52a. Credited to the cash account:
(Choose all that apply.)
On pay date.
On pay
date +1.
On pay date
+2.
Other. - then answer 52b
52b. If
other, please explain:
52c.
Name of entity:
52d.
If other, please explain:
Interests and dividends are paid by
the issuers directly to securities holders or their
custodians.
|
| 53 |
What is the average percentage of income receipts
which have actually been collected by the depository from issuers or
paying agents when the credits are made to the participant
accounts?
Not
applicable
|
Linkages with Other Central
Securities Depositories (CSD) or International Central Securities
Depositories (ICSD) |
| 54 |
Please identify the existence and scope of
electronic processing linkages with foreign depositories or settlement
systems:
Do you have any electronic processing linkages with
foreign depositories or settlement systems?
Yes
No >> take you to
63
Other.
Please explain in 54a. - then answer
54a and >> take you to 63
Not applicable >> take you to 63
54a. If
other, please explain:
|
| 55 |
If yes, identify entity, name of CSD or ICSD with
which linkage has been established (if more than one, you will be prompted
to enter their name at the end of this series of
questions):
- then answer 55a
55a. Is
the linkage Unilateral or Bilateral? (For an explanation of unilateral
linkage and bilateral linkage, click on the "Help" button on the tool bar
on the right side of this page.) (Choose all that apply.)
Unilateral - then answer
55b
Bilateral - then answer
55b
Not
applicable
Other - then answer
55l
55b. Does an intermediary provide
interface to depository?
Yes - then answer 55c
No - then
answer 55d
55c. If yes, name
intermediary:
55d.
Is cross listing on the other exchange mandatory for usage of
depository linkages?
Yes - then answer 55e
No - then
answer 55e
55e. Is Delivery-vs.-payment
settlement possible?
Yes
No
Other. Please explain in
55j. - then answer
55j
55f. Is Free-of-payment settlements
required?
Yes
No
Other. Please explain in
55k. - then answer
55k
55k. If other, please
explain:
55g.
Timing of transfers: How are they effected? (Choose all that
apply.)
Batch mode
Real time
Not
applicable
Other - then answer
55m
55m. If other, please
explain:
55h.
What is the percentage of all trades settled at your institution with
this CSD or ICSD link?
55i.
Do you have any additional electronic processing linkages with foreign
depositories or settlement systems?
Yes. If so please proceed to
next question.
No >> take you to
60
Other - then answer
55n
55n. If other, please
explain:
55j.
If other, please explain:
55l.
If other, please explain:
|
| 56 |
If yes, identify entity, name of CSD or ICSD with
which linkage has been established (if more than one, you will be prompted
to enter their name at the end of this series of
questions):
- then answer 56a
56a. Is
the linkage Unilateral or Bilateral? (For an explanation of unilateral
linkage and bilateral linkage, click on the "Help" button on the tool bar
on the right side of this page.) (Choose all that apply.)
Unilateral - then answer
56b
Bilateral - then answer
56b
Not
applicable
Other - then answer
56l
56b. Does an intermediary provide
interface to depository?
Yes - then answer 56c
No - then
answer 56d
56c. If yes, name
intermediary:
56d.
Is cross listing on the other exchange mandatory for usage of
depository linkages?
Yes - then answer 56e
No - then
answer 56e
56e. Is Delivery-vs.-payment
settlement possible?
Yes
No
Other. Please explain in
56j. - then answer
56j
56f. Is Free-of-payment settlements
required?
Yes
No
Other. Please explain in
56k. - then answer
56k
56k. If other, please
explain:
56g.
Timing of transfers: How are they effected? (Choose all that
apply.)
Batch mode
Real time
Not
applicable
Other - then answer
56m
56m. If other, please
explain:
56h.
What is the percentage of all trades settled at your institution with
this CSD or ICSD link?
56i.
Do you have any additional electronic processing linkages with foreign
depositories or settlement systems?
Yes. If so please proceed to
next question.
No >> take you to
60
Other - then answer
56n
56n. If Other, please
explain:
56j.
If other, please explain:
56l.
If other, please explain:
|
| 57 |
If yes, identify entity, name of CSD or ICSD with
which linkage has been established (if more than one, you will be prompted
to enter their name at the end of this series of
questions):
- then answer 57a
57a. Is
the linkage Unilateral or Bilateral? (For an explanation of unilateral
linkage and bilateral linkage, click on the "Help" button on the tool bar
on the right side of this page.) (Choose all that apply.)
Unilateral - then answer
57b
Bilateral - then answer
57b
Not
applicable
Other - then answer
57l
57b. Does an intermediary provide
interface to depository?
Yes - then answer 57c
No - then
answer 57d
Other - then answer
57n
57c. If yes, name
intermediary:
57d.
Is cross listing on the other exchange mandatory for usage of
depository linkages?
Yes - then answer 57e
No - then
answer 57e
Other - then answer
57o
57e. Is Delivery-vs.-payment
settlement possible?
Yes
No
Other. Please explain in
57j. - then answer
57j
57f. Is Free-of-payment settlements
required?
Yes
No
Other. Please explain in
57k. - then answer
57k
57k. If other, please
explain:
57g.
Timing of transfers: How are they effected? (Choose all that
apply.)
Batch mode
Real time
Not
applicable
Other - then answer
57m
57m. If other, please
explain:
57h.
What is the percentage of all trades settled at your institution with
this CSD or ICSD link?
57i.
Do you have any additional electronic processing linkages with foreign
depositories or settlement systems?
Yes. If so please proceed to
next question.
No >> take you to
60
Other - then answer
57p
57p. If other, please
explain:
57j.
If other, please explain:
57o.
If other, please explain:
57n.
If Other, please explain:
57l.
If other, please explain:
|
| 58 |
If yes, identify entity, name of CSD or ICSD with
which linkage has been established (if more than one, you will be prompted
to enter their name at the end of this series of
questions):
- then answer 58a
58a. Is
the linkage Unilateral or Bilateral? (For an explanation of unilateral
linkage and bilateral linkage, click on the "Help" button on the tool bar
on the right side of this page.) (Choose all that apply.)
Unilateral - then answer
58b
Bilateral - then answer
58b
Not
applicable
Other - then answer
58l
58b. Does an intermediary provide
interface to depository?
Yes - then answer 58c
No - then
answer 58d
Other - then answer
58n
58c. If yes, name
intermediary:
58d.
Is cross listing on the other exchange mandatory for usage of
depository linkages?
Yes - then answer 58e
No - then
answer 58e
Other - then answer
58o
58e. Is Delivery-vs.-payment
settlement possible?
Yes
No
Other. Please explain in
58j. - then answer
58j
58f. Is Free-of-payment settlements
required?
Yes
No
Other. Please explain in
58k. - then answer
58k
58k. If other, please
explain:
58g.
Timing of transfers: How are they effected? (Choose all that
apply.)
Batch mode
Real time
Not
applicable
Other - then answer
58m
58m. If other, please
explain:
58h.
What is the percentage of all trades settled at your institution with
this CSD or ICSD link?
58i.
Do you have any additional electronic processing linkages with foreign
depositories or settlement systems?
Yes. If so please proceed to
next question.
No >> take you to
60
Other - then answer
58p
58p. If other, please
explain:
58j.
If other, please explain:
58o.
If other, please explain:
58n.
If other, please explain:
58l.
If other, please explain:
|
| 59 |
If yes, identify entity, name of CSD or ICSD with
which linkage has been established (if more than one, you will be prompted
to enter their name at the end of this series of
questions):
- then answer 59a
59a. Is
the linkage Unilateral or Bilateral? (For an explanation of unilateral
linkage and bilateral linkage, click on the "Help" button on the tool bar
on the right side of this page.) (Choose all that apply.)
Unilateral - then answer
59b
Bilateral - then answer
59b
Not
applicable
Other - then answer
59m
59b. Does an intermediary provide
interface to depository?
Yes - then answer 59c
No - then
answer 59d
Other - then answer
59o
59c. If yes, name
intermediary:
59d.
Is cross listing on the other exchange mandatory for usage of
depository linkages?
Yes - then answer 59e
No - then
answer 59e
Other - then answer
59p
59e. Is Delivery-vs.-payment
settlement possible?
Yes
No
Other. Please explain in
59j. - then answer
59j
59f. Is Free-of-payment settlements
required?
Yes
No
Other. Please explain in
59k. - then answer
59k
59k. If other, please
explain:
59g.
Timing of transfers: How are they effected? (Choose all that
apply.)
Batch mode
Real time
Not
applicable
Other - then answer
59n
59n. If other, please
explain:
59h.
What is the percentage of all trades settled at your institution with
this CSD or ICSD link?
59i.
Do you have any additional electronic processing linkages with foreign
depositories or settlement systems?
Yes. If so please proceed to
next question. - then answer
59l
No >> take you to
60
Other - then answer
59q
59l. If yes, please prepare and
upload a document with the additional information here:
59q. If other,
please explain:
59j.
If other, please explain:
59p.
If other, please explain:
59o.
If other, please explain:
59m.
If other, please explain:
|
| 60 |
What governs the relationship in cross-system
settlements? (Choose all that apply.)
Negotiated terms and conditions of participation between the
depositories
By-laws of each
depository
Standard
participation contracts with users of cross-system services
Laws of the jurisdiction where settlement
occurs
Other - then answer 60a
60a.
Please explain:
|
| 61 |
Are procedures and controls (firewalls) in place to
avoid systemic collapse or contamination if one of the linked entities
should experience business interruptions for whatever reason?
Yes - then answer 61a
No - then
answer 61a
Other - then answer
61a
Not
applicable
61a. Please
explain:
|
| 62 |
Has a business interruption recovery plan been
developed in the event the linkages should become inoperable for any
reason?
Yes
No
Other - then answer 62a
Not applicable
62a.
If other, please explain:
|
ACCOUNT STRUCTURES AND
RECORDKEEPING
The purpose of this section is to identify
the nature of accounts; the naming convention employed, the level of
segregation achieved, accessibility in the event of bankruptcy and the
frequency of reporting generated from them. |
| 63 |
Are participants permitted to maintain more than
one account at the depository?
Yes - then answer
63a
No
Not applicable
Other - then
answer 63d
63a. If yes, please indicate
number (Choose one.):
An unlimited number
of accounts.
More than one account, if so please indicate below how
many. - then answer
63b
Other
(e.g., subaccounts). - then answer
63c
63b. If more than one account what
is the maximum?
63c.
If other, please explain:
63d.
If other, please explain:
|
| 64 |
Are participants required/permitted to segregate
assets held for their own benefit from those they hold for their clients?
Yes - then answer
64a
No
Not applicable
Other - then
answer 64d
64a. If yes, is segregation
required or simply permitted?
Required - then answer
64b
Permitted - then answer
64b
Other - then answer
64e
64b. How does segregation occur?
(Choose all that apply.)
By separately designated participant accounts.
By sub-accounts within a single
participant account.
By
separately designated beneficial owner accounts.
Other (e.g., share registration). - then answer 64c
64c. If
other, please explain:
64e.
If other, please explain:
64d.
If other, please explain:
|
| 65 |
Does the depository permit its participants to open
accounts in the participant's own nominee name(s)?
Yes - then answer 65a
No
Other. Please explain in
65b. - then answer
65b
Not
applicable
65a. If "Yes", do laws exist
which acknowledge the rights of beneficial owners with respect to
securities registered in nominee name?
Yes
No
65b. If other, please
explain:
|
| 66 |
In the event a participant's single account is
blocked for any reason (e.g., insolvency, penalties, violations, liens),
would securities held in the account on behalf of the participant's
clients be accessible:
66a. By the
participant's clients?
Yes - then answer
66b
No
Not applicable.
Other - then
answer 66i
66b. If yes, please describe
briefly how clients of participants would access their securities and
whether there would be any delay in their ability to do so:
In such situation the clients may
access their holdings through another Participant. The appropriate
procedures (CDS Procedures 9 - Transfer)for the transfer of the securities
to accounts registered with other participants must be followed. There
would not be any delay if these procedures are followed
promptly.
66i. If other, please
explain:
66c.
By the intervening authorities controlling insolvency or other
proceedings?
Yes - then answer 66d
No
Not applicable.
Other - then answer
66j
66d. If yes, please describe
briefly under what conditions access would be granted to the intervening
authorities:
66j.
If other, please explain:
66e.
By the participant's creditors?
Yes - then answer 66f
No
Not applicable.
Other - then answer
66k
66f. If yes, please describe
briefly under what conditions access would be granted to the participant's
creditors:
66k.
If other, please explain:
66g.
By the depository's creditors?
Yes - then answer 66h
No
Not applicable.
Other - then answer
66l
66h. If yes, please describe
briefly under what conditions access would be granted to the depository's
creditors:
66l.
If other, please explain:
|
| 67 |
In what form does the depository maintain records
identifying the assets of each participant? (Choose all that apply.)
(Please refer to "Help" for clarification.)
Computer file - then answer
67b
Microfiche - then answer
67b
Hard
copy - then answer 67b
Computer tape - then answer 67b
Other - then answer
67a
67a. If other, please
explain:
67b.
In which format is the source data maintained?
Data is stored in Oracle database
tables.
|
| 68 |
Rule 17f-7 requires that an Eligible Securities
Depository "provides periodic reports to its participants with respect to
its safekeeping of assets, including notices of transfers to or from any
participant's account."
Does the depository make available periodic
safekeeping reports to participants, including notices of transfers to or
from the participant's account?
Yes - then answer
68b
No (You
will be asked to confirm whether you want to move on to 70 in advance of
answering subquestion 68a, do not be alarmed as it will allow you to
answer 68a before moving on.) - then
answer 68a and >> take you to 70
Other - then
answer 68a
68a. If no or other, please
explain:
68b.
If yes, please indicate the scheduled frequency: (Choose one.)
Daily.
Weekly.
Monthly.
Quarterly.
Annually.
Upon Request.
Other. -
then answer 68c
68c. If other, please
explain:
|
| 69 |
What is your document retention policy for
documents described in previous question? (Choose one.)
6 months or
less.
1
year.
3
years.
5
years.
7
years.
Other. - then answer
69a
69a. If other, please
explain:
10
years
|
SETTLEMENTS
The purpose of
this section is to identify the model of settlement employed, the
relationship between cash and securities, and the basis on which
participants' meet their obligations. |
| 70 |
The Committee on Payment and Settlement Systems of
the Bank for International Settlements (BIS) has identified three common
structural approaches or models for linking delivery and payment in a
securities settlement system. Please indicate which model your procedures
most closely resemble (Please refer to details on the models within the
"Help" feature connected with this question): (Choose all that
apply.)
Model 1 - Gross, Simultaneous Settlements
of Securities and Funds Transfers. - then
answer 70a
Model
2 - Gross Settlements of Securities Transfers Followed by Net Settlement
of Funds Transfers. - then answer
70a
Model 3 -
Simultaneous Net Settlement of Securities and Funds
Transfers. - then answer
70a
Not
applicable
Other - then answer
70b
70a. How do your settlement
procedures vary from the model chosen above?
On settlement date (T+3), securities
are settled on a gross basis (trade-for-trade settlement)immediately after
the central bank confirms the final and irrevocable transfer of funds by a
net settlement mechanism conform to the Lamfalussy
Recomendations.
70b. If other, please
explain:
|
| 71 |
Are the cash and security movements
simultaneous?
Yes
No - then answer 71a
Not applicable
Other - then answer 71c
71a. If
cash and security movements are not simultaneous, please indicate the
duration of the timing gap: (Choose one.)
1 hour or
less
2
hours
3
hours
4
hours
5
hours
Overnight
2 days
Other - then answer
71b
71b. If other, please
explain:
5
minutes
71c. If other, please
explain:
|
OWNERSHIP OF SECURITIES
The
purpose of this section is to determine how ownership of securities is
represented, the ways the depository maintains ownership or control of
securities held in the depository, and the extent to which ownership of
assets held by the depository is separated from the proprietary assets of
the depository. This section also considers the process by which the
ownership of securities is transferred in the depository and the existence
of any liens or claims on depository securities (such as a clearing lien)
that would affect the ownership of depository securities. |
| 72 |
How are depository eligible securities held by the
depository?
Securities in the depository are held in
certificated form. - then answer
72b
Securities in
the depository are held in dematerialized form. (You will be asked to
confirm whether you want to move on to 74 in advance of answering
subquestion 72c, do not be alarmed as it will allow you to answer 72c
before moving on.) - then answer
72c
Other. - then answer
72a
72a. If other, please explain and
identify percentage issued of total depository holdings:
72b.
If held in certificated form, please indicate next to the type of
security the percentage of the depository's total issues that each
security represents. (Please provide numeric answer.)
Government Securities in jumbo certificate form
Equities in jumbo certificate
form
Corporate Bonds in
jumbo certificate form
Corporate Money Markets in jumbo certificate
form
Government Securities
in individual certificate form
Equities in individual certificate form
Corporate Bonds in individual
certificate form
Corporate
Bonds in individual certificate form
Corporate Money Markets in individual certificate
form
Other - please explain
in 72d.
72d. If other, please
explain:
72c.
If held in dematerialized form, please indicate next to the type of
security the percentage of the depository's total issues that each
security represents. (Please provide numeric answer.)
Government Securities
Equities
Corporate Bonds
Corporate Money Markets
Other - please explain in
72e.
72e. If other, please
explain:
|
| 73 |
If depository eligible securities are certificated,
can depository eligible securities be held outside of the
depository?
All eligible securities must be held in
the depository. - then answer
73b
Securities
may move freely into and out of the depository. - then answer 73g
Once entered into the depository, eligible securities must
remain in the depository. - then answer
73b
Certain designated
securities may be held outside the depository. - then answer 73a
Not Applicable.
Other - then answer
73j
73a. If certain designated
securities are held outside the depository, please indicate under which
conditions these securities would be held outside the
depository:
73b.
If depository eligible securities are required to be centrally
immobilized at the depository, where and with whom are the certificates
safekept?
- then answer 73c
73c.
Are these certificates:
Bearer
Registered - then answer
73d
Other - then answer
73k
73d. If registered, how are the
depository eligible securities registered? (Do not be alarmed, the last
two options will prompt you to ask whether you wish to proceed to 75
before allowing you to answer the subquestion but you will be given the
opportunity to answer the subquestion before continuing).
In the name of the depository.
In the name of the depositing participant or its
nominee.
In the name of a
separate nominee of the depository. - then
answer 73f
Other. - then answer
73e
73e. If other, please
describe:
73f.
If in the name of a separate nominee, please identify by name the
nominee used:
73k.
If other, please explain:
73g.
If depository eligible securities may be held either in or out of the
depository, are these certificates:
Bearer - then answer
73h
Registered - then answer
73h
Other. Please explain
in 73i. - then answer
73i
73h. What are the control features
for receipt of certificates to the depository (e.g., authentication
procedures, re-registration)? Please describe:
The serial number of each
certificate deposited is recorded in the CDS system. Each time a deposit
is made, the system verifies that the certificate has not been deposited
previously and also that the certificate has not been declared lost or
stolen. In such cases the deposit is rejected. Deposited certificates are
then forwarded to the registry of the issuer for the confirmation of the
authenticity thereof. Securities accounts are credited only upon receipt
of the written confirmation of the authenticity of the certificate from
the registry of the issuer.
73i. If other,
please explain:
73j.
If other, please explain:
|
| 74 |
If securities are dematerialized:
May
dematerialized security positions be re-certificated and held outside the
depository?
Yes - then answer
74a
No - then answer
74a
Not
Applicable
Other - then answer
74j
74a. Are the securities held:
(Choose all that apply.)
Through book-entry at the depository
Through book-entry at a registrar or
issuer - then answer 74b
Other -
then answer 74k
74b. Please identify
which types of entities may act as registrars: (Choose all that
apply.)
Issuers
Separate companies that perform registrar
functions
Depository
Other - then answer
74c
74c. Please explain:
74d.
If the securities held by the depository are recorded by book entry at
the registrar, are the securities registered only to the depository, with
the depository providing the function of recording ownership on a
centralized basis for the market? (Choose all that apply.)
Yes - then answer
74e
No - then answer 74g
Other - then answer
74l
74e. If yes, how are securities
held at the registrar for the account of the depository? (Choose one.)
In the name of the
depository
In the name of a separate nominee of the
depository
Other - then answer
74f
74f. Please describe:
74g.
If the securities held with the depository are recorded by book-entry
at the registrar but are not registered exclusively to the depository, may
they be registered to:
The beneficial owner
A
nominee
Other - then answer 74h
74h.
Please describe:
74i.
If the securities held with the depository are recorded by book-entry
at the registrar, what are the control features at the registrar for
transfer of registrar positions to and from the depository (e.g.,
authentication procedures, reconciliation, confirmation of position at
registrar)? Please describe:
Securities certificates that are
deposited with the CDS are sent to the registry of the issuer for the
confirmation of their authenticity. When confirming the authenticity, the
registry transfers the securities in the name of the CDS and confirms the
total quantity of securites recorded in the name of the CDS. Upon receipt
of the confirmation of the authenticity of the certificates, the CDS
credits the securities account of the holder and reconciles the total
quantity of securities held in CDS with the position confirmed by the
registry. Reconciliation of the positions therefore occurs on an on-going
basis each time certificates are
deposited.
74l. If other, please
explain:
74k.
If other, please explain:
74j.
If other, please explain:
|
| 75 |
Rule 17f-7 requires that an Eligible Securities
Depository "maintains records that identify the assets of each participant
and segregate the system's own assets from the assets of
participants."
Does the depository maintain records that identify
the assets of each participant and segregate the system's own assets from
the assets of participants?
Yes
No
Not
applicable - then answer
75a
Other - then answer
75a
75a. If other, please
explain:
|
| 76 |
Does the law protect participant assets from claims
and liabilities of the depository?
Yes
No
Not
applicable
Other - then answer
76a
76a. If other, please
explain:
|
| 77 |
Can the depository assess a lien on participant
accounts? (A lien would entitle the depository to take and hold or sell
the securities of the participant in payment of a debt.)
Yes - then answer
77a
No
Not applicable
Other - then
answer 77l
77a. If yes, for what
reasons are liens or similar claims imposed? (Choose all that
apply.)
Fees and expenses
Collateralization of overdrafts
To secure payment for purchased
securities
Other - then answer
77b
77b. Please describe:
77c.
Please indicate the limits of this lien as indicated below: (Choose
one.)
The lien is limited to
securities in the participant's proprietary account.
The lien is limited
to securities in the course of purchase and sale transactions, but does
not extend to settled positions.
The lien may extend to settled client
positions. - then answer
77d
Other.
Please explain in 77d. - then answer
77d
77d. Please explain:
77e.
If a lien is placed on a participant's account which has been
designated for its clients, will the depository select certain securities
to be subject to the lien?
Yes - then answer
77f
No - then answer
77h
Other - then answer
77m
77f. If yes, please indicate
whether: (Choose one.)
the lien is placed
on the most liquid securities in the account
the lien is placed on the securities
with the greatest value in the account
other selection criteria is
used. - then answer
77g
77g. Please explain:
77h.
If no, please indicate whether the entire account will be subject to
the lien.
Yes
No
Other - then answer
77n
77n. If other, please
explain:
77i.
For accounts designated as client accounts, do procedures exist to
restrict the placement of liens only to obligations arising from safe
custody and administration of those accounts?
Yes - then answer
77j
No
Other - then answer
77o
77j. If yes, are the restrictions
accomplished by:
contract between the
depository and the participant
other procedures - then answer 77k
77k.
Please explain:
77o.
If other, please explain:
77m.
If other, please explain:
77l.
If other, please explain:
|
| 78 |
Transfer of Legal Ownership
Does the
depository have legal authority to transfer title to securities?
Yes - then answer
78a
No
Not applicable
Other - then
answer 78e
78a. When does title or
entitlement to depository securities pass between participants? (Choose
one.)
At the end of the business
day on which the transfer occurs. -
then answer 78c
When corresponding money or other consideration is
transferred. - then answer
78c
When
the transaction is processed on an intra-day
basis. - then answer
78c
Other. - then answer
78b
78b. Please describe:
78c.
Where does title or entitlement to depository securities pass between
participants? (Choose one.)
On the depository
books.
On
the registrars books.
Other. -
then answer 78d
78d. Please
describe:
78e.
If other, please explain:
|
HANDLING OF SECURITIES OUTSIDE THE
DEPOSITORY ENVIRONMENT
The purpose of this section is to
consider the process (and any risk inherent within such a process) that
involves the safekeeping of client assets while they are being removed
from a depository or being lodged into a depository. |
| 79 |
How are eligible securities lodged in the
depository system? (Choose all that apply.)
A registered certificate in the name of the depository is
delivered to the depository.
A participant delivers the security with a valid transfer deed
or stock power or other transfer document to the depository which then
effects registration.
A
registrar re-registers the security in the name of the
depository.
Other. - then answer
79a
Not
applicable
79a. Please describe:
|
| 80 |
When are securities lodged into the depository
reflected in a participant's depository account? (Choose all that
apply.)
Securities are reflected in the
participant's depository account immediately upon delivery to the
depository.
Securities are
re-registered prior to being reflected in the participant's depository
account.
Other. - then answer
80a
Not
applicable
80a. Please explain:
Securities certificates that are
deposited with the CDS are sent to the registry of the issuer for the
confirmation of their authenticity and re-registration of the securities
in the name of the depository. The registry has five business days for
sending the confirmation to the CDS and re-registering the securities in
the name of the depository. Upon receipt of the confirmation of the
authenticity of the certificates, the CDS immediately credits the
securities account of the holder.
|
| 81 |
How long does it usually take to lodge securities
with the depository? (Choose one.)
1 to 2 days.
3 days to 1
week.
2 to 4
weeks.
More
than 4 weeks. - then answer
81a
Not
applicable.
Other. Please explain in 81b. - then answer 81b
81a.
Please specify:
81b.
If other, please explain:
|
| 82 |
During the process of lodging securities into the
depository, can the securities:
Be traded?
Yes
No - then answer
82c
Not
applicable
Other - then answer
82c
82a. During the process of lodging
securities into the depository, can the securities:
Be settled?
Yes
No - then answer
82d
Not
applicable
Other - then answer
82d
82b. During the process of lodging
securities into the depository, can the securities:
Have ownership
transferred?
Yes
No - then answer
82e
Not
applicable
Other - then answer
82e
82e. If ownership can not be
transferred, or if you answered other, please explain:
Securities certificates that are
deposited with the CDS are sent to the registry of the issuer for the
confirmation of the authenticity thereof and re-registration of the
securities in the name of CDS. The registry has 5 business days to send
the confirmation to CDS and re-register the securities in the name of the
depository. CDS credits the securities account of the holder immediately
upon receipt of the confirmation of authenticity. Ownership can be
transferred only after the securities account of the holder has been
credited.
82d. If they can not be settled,
of if you answered other, please explain:
Securities can be settled only after
the securities account of the holder has been
credited.
82c. If they can not be traded,
or if you answered other, please explain:
Securities are availble for trade
only after the securities account of the holder has been
credited.
|
| 83 |
Are securities immediately available for delivery
upon transfer to the depository?
Yes
No - then answer 83a
Not applicable
Other - then answer 83d
83a. If
no: Securities are unavailable for:
1 to 2 days
3 days to 1
week
2 to 4
weeks
More
than 4 weeks - then answer
83b
Other.
Please explain in 83c. - then answer
83c
83b. If more than 4 weeks, please
specify:
83c.
If other, please explain:
83d.
If other, please explain:
|
| 84 |
Are eligible securities held through the depository
afforded the same or greater efficiencies as securities held outside the
depository with respect to:
84a.
Income? (Choose one.)
Not
applicable
No - then answer
84b
Yes - for all instrument types
Yes - for the following instrument
types only: - then answer
84c
Other - then answer
84b
84b. Please explain:
84c.
Name instrument types:
84d.
Corporate actions?
Not
applicable
No - then answer
84e
Yes - for all instrument types
Yes - for the following instrument
types only: - then answer
84f
Other - then answer
84e
84e. Please explain:
84f.
Name instrument types:
84g.
Proxy Services?
Not
applicable
No - then answer
84h
Yes - for all instrument types
Yes - for the following instrument
types only - then answer
84i
Other - then answer
84h
84h. Please explain:
84i.
Name instrument types:
|
| 85 |
Can securities held outside of the
depository:
85a. Be
traded without being lodged at the depository?
No - then answer
85b
Not
applicable
Yes
Other - then answer
85b
85b. Please explain:
The Securities (CDS) Act 1996 states
that all trades effected on the Stock Exchange of Mauritius should be
cleared and settled through the CDS. This requires the prior lodging of
the securities in the CDS before the trade is
effected.
85c. Be settled without being
lodged at the depository?
No - then answer
85d
Not
applicable
Yes - then answer
85e
Other - then answer
85d
85d. Please explain:
Please see 85b
above.
85e. If yes, do settlements of
depository-eligible securities occurring outside the depository take
longer to settle?
Yes
No
Not
applicable
Other - then answer
85h
85h. If other, please
explain:
85f.
Have ownership transferred without being lodged at the depository?
No - then answer
85g
Not
applicable
Yes
Other - then answer
85g
85g. Please explain:
Please refer to 85b
above.
|
| 86 |
How are eligible securities removed from the
depository? (Choose one.)
Securities are re-registered
into the name of the beneficial owner or a nominee.
Securities are
re-certificated and re-registered into the name of the beneficial owner or
a nominee.
Securities are re-certificated and delivered as bearer
instruments.
Securities are transferred as is any physical delivery in the
market.
Other - then answer
86a
Not
applicable
86a. Please
specify:
|
| 87 |
How long does it usually take to remove securities
from the depository? (Choose one.)
1 to 2 days
3 days to 1
week
2 to 4
weeks
More
than 4 weeks - then answer
87a
Not
applicable
Other. Please explain in 87b. - then answer 87b
87a.
Please specify:
87b.
If other, please explain:
The withdrawal request is processed
immediately as it reaches the CDS. However, the issuer has up to 14 days
to issue a certificate in the name of the beneficial
owner.
|
| 88 |
While the securities are being removed from the
depository, can they:
88a. Be
traded? (Choose one.)
No - then answer
88b
Not
applicable
Yes
Other - then answer
88b
88b. Please explain:
A request to withdraw securities
from the CDS entails debiting the quantity being withdrawn from the
securities account of the client. The securities account is debited as
soon as the withdrawal request reaches the CDS and therefore the
securities can no longer be traded.
88c.
Be settled?
No - then answer
88d
Not
applicable
Yes
Other - then answer
88d
88d. Please explain:
The securities account is debited as
soon as the withdrawal request reaches the CDS and therefore the
securities are not available for
settlement.
88f. Have ownership
transferred?
No - then answer
88g
Not
applicable
Yes
Other - then answer
88g
88g. Please explain:
The securities account is debited as
soon as the withdrawal request reaches the CDS and therefore the
securities are not available for any transaction.
|
| 89 |
Where are securities that are outside the
depository held in safekeeping? (Choose all that apply.)
Securities are dematerialized; ownership of securities is
identified through the records of the company registrar.
Securities are held physically, registered
on behalf of the beneficial owner or a nominee and physically safekept by
subcustodian banks.
Securities
are held physically in bearer form in subcustodian banks.
Securities may be held physically by
brokers, the registrar, or beneficial owner.
Other - then
answer 89a
Not
applicable
89a. Please specify:
Securities are normally held
physically by the beneficial owner or its custodian
bank.
|
STANDARD OF CARE
The purpose
of this section is to understand the responsibility and liability that the
depository has in providing services to its participants/members in the
settlement and clearing of securities and/or cash, and to understand what
type of protections exist for participants in the event of a participant
failure/default.
Depository Liability |
| 90 |
Does the depository accept liability (independent
of any insurance coverage) for the following:
90a.
Reconciliation errors with the registrar and/or issuer?
No
Not
applicable
Yes - then answer
90b
Other - then answer
90q
90b. If yes, please check all of
the following that apply:
Financial limits are imposed on the amount of liability assumed
by the depository
The depository
assumes liability for direct losses
The depository assumes liability for indirect or consequential
losses
Other - then answer 90y
90y. If
other, please explain:
90q.
If other, please explain:
90c.
Theft of securities (either physical certificate or electronically from
accounts at the depository) from the depository?
No
Yes - then answer
90d
Not
applicable.
Other - then answer
90r
90d. If yes, please check all of
the following that apply:
Financial limits are imposed on the amount of liability assumed
by the depository
The depository
assumes liability for direct losses
The depository assumes liability for indirect or consequential
losses
Other - then answer 90z
90z. If
other, please explain:
90r.
If other, please explain:
90e.
Failure of the depository's systems that result in direct damages or
losses to participants because they cannot use either securities or
funds?
No
Yes - then answer
90f
Not
applicable.
Other - then answer
90s
90f. If yes, please check all of
the following that apply:
Financial limits are imposed on the amount of liability assumed
by the depository
The depository
assumes liability for direct losses
The depository assumes liability for indirect or consequential
losses
Other - then answer 90{
90{. If
other, please explain:
90s.
If other, please explain:
90g.
Any loss caused by the depository due to errors, omissions or fraud
that cause direct damages or losses to participants?
No
Yes - then answer
90h
Not
applicable.
Other - then answer
90t
90h. If yes, please check all of
the following that apply:
Financial limits are imposed on the amount of liability assumed
by the depository
The depository
assumes liability for direct losses
The depository assumes liability for indirect or consequential
losses
Other - then answer 90|
90|. If
other, please explain:
90t.
If other, please explain:
90i.
The depository acting as the central counterparty?
No
Not
applicable
Yes - then answer
90j
Other - then answer
90u
90j. If yes, please check all of
the following that apply:
Financial limits are imposed on the amount of liability assumed
by the depository
The depository
assumes liability for direct losses
The depository assumes liability for indirect or consequential
losses
Other - then answer 90}
90}. If
other, please explain:
90k.
Does the depository guaranty settlement?
No
Yes - then answer
90l
Not
applicable.
Other - then answer
90v
90l. Please explain how this is
accomplished. What are the procedures and safeguards that permit the
depository to guaranty settlement?
Section 3(8) of the Securities (CDS)
Act 1996 states that the CDS shall establish and maintain a Guarantee Fund
for the purpose of providing an indemnity against any default in respect
of payments for or delivery of securities by any participant and of
obligations of participants towards CDS. As required by the law the
Guarantee Fund has been set up to guarantee the settlement of trades. In
the event of a failure of a participant, the Guarantee Fund steps in the
net settlement mechanism and makes good the obligations of the defaulting
participant. The CDS is subrogated to all the rights and powers of the
defaulting participant for the purpose of the seizure and sale of unpaid
securities and of operating the Guarantee Fund.
The resources
available to the Guarantee Fund are as follows:
- Collateral (letters
of credit)submitted by brokers
- Cash contributions by brokers
-
Cash contributions by CDS (10% of CDS fees on each transaction)
- Line
of credit from commercial bank
As a preventive measure, the net
cummulative liability of each broker is not allowed to exceed a limit that
is based on the amount of collateral submitted by the
broker.
90v. If other, please
explain:
90u.
If other, please explain:
90m.
Force majeure events, acts of God, or political events, etc.?
No
Yes - then answer 90n
Not applicable.
Other - then answer 90w
90n. If
yes, please check all of the following that apply:
Financial limits are imposed on the amount of liability assumed
by the depository
The depository
assumes liability for direct losses
The depository assumes liability for indirect or consequential
losses
Other - then answer 90~
90~. If
other, please explain:
90w.
If other, please explain:
90o.
In all cases where the depository assumes responsibility for direct or
indirect or consequential losses, is the depository's liability limited by
a standard of care determination?
No
Yes - then answer
90p
Not
applicable
Other - then answer
90x
90p. Please define the standard of
care applied:
When
acting in good faith and without negligence CDS is not
liable
90x. If other, please
explain:
|
| 91 |
Do the depository's written contracts, rules, or
established practices and procedures provide protection against risk of
loss of participant assets by the depository in the form
of?
91a.
Indemnification
Yes - then answer
91b
No
Other - then answer
91b
Not
applicable
91b. Please
explain:
CDS Rules 3.10
deals with CDS Liabilities. Rule 3.10.1 deals with Exclusion while Rule
3.10.2 deals with Limitation of Liability
- then answer 91i
91i.
Please provide details of the relevant sections of the contracts, rules
or practices where this information is found.
'Rule 3.10 CDS
Liability
3.10.1 Exclusion.
When acting in good faith and
without negligence, CDS is not liable to any Participant or holders of
Securities Accounts under its management for:
a) any loss of
opportunity, profit, market, goodwill, interest or use of money or
Securities;
b) any other special, indirect or consequential loss,
damage, expense, liability or claim;
c) any loss in respect of
which the Participant indemnifies CDS;
which is suffered or
incurred by any Participant or holders of Securities Accounts under its
management arising from or related to the Services.
3.10.2
Limitation.
CDS' liability in respect of any Service to any
Participant, for a loss not excluded by the Rules and arising from any
cause, does not in any event exceed the net amount that CDS recovers from
its insurers or any other person for any such loss.
Where more
than one Participant or holders of Securities Accounts suffer or incur a
loss for which CDS accepts such limited liability, the net amount
recovered by CDS is distributed among all such Participants and holders of
Securities Accounts in a fair and equitable manner determined by
CDS.'
91c. Insurance
Yes - then answer
91d
No
Other - then answer
91d
Not
applicable
91d. Please
explain:
CDS Rule
3.10.3 requires CDS to obtain and maintain policies of insurance including
professional indemnity insurance.
-
then answer 91j
91j. Please provide
details of the relevant sections of the contracts, rules or practices
where this information is found.
'Rule 3.10.3 Insurance.
CDS
takes reasonable steps to obtain and maintain one or more policies of
insurance for such amounts and coverage as CDS may reasonably determine in
the best interests of CDS and Participants, and provided such insurance is
available at a reasonable cost. A policy of insurance maintained by CDS is
open to Participant inspection at the time and place determined by
CDS.
CDS notifies Participants of any material reduction in the
coverage or amount of any policy of insurance maintained by
CDS.'
91e. Acknowledgement of
liability for losses caused by depository's own actions.
Yes - then answer
91f
No
Other - then answer
91f
Not
applicable
91f. Please
explain:
CDS Rules
3.10.1 and 3.10.2
- then answer
91k
91k. Please provide details of the
relevant sections of the contracts, rules or practices where this
information is found.
See 91i
above
91g. Other
Yes - then answer 91h
No
91h.
Please explain:
- then answer 91l
91l.
Please provide details of the relevant sections of the contracts, rules
or practices where this information is found.
|
| 92 |
Is the depository immune from legal action in its
own jurisdiction?
Yes
No
Other - then answer 92a
92a. If
other, please explain:
|
Security Control |
| 93 |
How do participants receive information (view
actual settlement of trades, movement of securities on their accounts,
etc.) and see the status of their accounts? (Choose all that
apply.)
By direct electronic
link
By receipt of
physical account holding statements
Other - then answer
93a
Not
applicable
93a. Please explain:
|
| 94 |
Do participants have access to affect their
holdings, including confirming and affirming trades, movement of
securities on their accounts, etc.?
Yes - then answer
94a
No
Other. Please explain in 94d. - then answer 94d
Not applicable
94a.
How is access given to participants? (Choose all that
apply.)
By direct electronic
link - then answer 94b
Other -
then answer 94c
94b. Please select type
of electronic link:
Dial-up modem
Secured, leased, dedicated telephone line
Internet
Fax
94c. Please
explain:
94d.
If other, please explain:
|
| 95 |
Regarding data security:
95a. Are
passwords used by participants to access their accounts?
Yes
No
Not
applicable
Other - then answer
95g
95g. If other, please
explain:
95b.
Does each user have a unique user ID?
Yes
No
Not
applicable
Other - then answer
95h
95h. If other, please
explain:
95c.
Are passwords regularly changed?
Yes - then answer
95d
No
Not applicable
Other - then
answer 95i
95d. How often?
Monthly
95i.
If other, please explain:
95e.
Is there a user lock-out after a pre-set number of unsuccessful User ID
attempts?
Yes - then answer
95f
No
Not applicable
Other - then
answer 95j
95f. How many?
3
95j.
If other, please explain:
|
| 96 |
Does the depository communicate with other market
entities such as stock exchanges, payment systems, clearing houses, etc.,
by secured linkages?
Yes - then answer
96a
No >> take you to
98
Not
applicable >> take you to
98
Other - then answer
96a
96a. Please explain:
The Automated Trading System of the
Stock Exchange of Mauritius and the CDS system run on different servers on
the same secured Local Area Network. There is a real-time interface
between the two systems. Both systems are managed by the same IT team. The
Stock Exchange of Mauritius has outsourced the systems management of the
Automated Trading System to the CDS.
Currently there is no
technological link with the payment system. Information is transmitted to
the Central Bank through hard-copy reports.
The CDS performs both
depository and clearing functions.
|
| 97 |
How does the depository communicate with other
market entities?
97a. Stock
Exchanges (Choose all that apply.)
Dial-up modem
Secured, leased, dedicated telephone line
Internet
Fax
Paper/other
Not
applicable
97b. Payment Systems (Choose all
that apply.)
Dial-up modem
Secured, leased, dedicated telephone line
Internet
Fax
Paper/other
Not
applicable
97c. Clearing Houses (Choose all
that apply.)
Dial-up modem
Secured, leased, dedicated telephone line
Internet
Fax
Paper/other
Not applicable
97d. Are there any
other entities?
Yes - then answer
97e
No
97e. Please
identify:
Settlement
Banks
- then answer
97f
97f. How does the depository
communicate with this/these other market entity/entities? (Choose all that
apply.)
Dial-up modem
Secured, leased, dedicated telephone line
Internet
Fax
Paper/other
|
| 98 |
How is access to the physical building controlled?
(Choose all that apply.)
By guards
By
electronic keys/personal ID card
By alarm system
Other - then answer
98a
98a. Please explain:
|
| 99 |
What are the vault security procedures for the
safekeeping of physical paper? (Choose all that apply.)
Not applicable; no vault is maintained
Electronic keys/combinations
Dual access control
Visitor logs
Vault
counts - then answer 99a
Intrusion alarms
Fire alarms
Guards
Other - then answer
99b
99a. Please indicate frequency of
vault counts:
99b.
Please explain:
|
Participant Default
Protections Resulting from a Participant Failure |
| 100 |
If a participant defaults, how is the loss covered?
(Choose all that apply?)
Depository insurance covers the loss - then answer 100a
The depository guaranty fund covers the loss
Loss is shared among
participants - then answer
100b
Other - then answer
100c
Not
applicable
100a. Please explain the
process:
100b.
Please explain the process of how the loss is shared: (Choose one.)
Equally, among
participants
Pro-rata based on participant's volume
Limited to participants with
transactions with failing counterparty
Other - then answer 100d
100d.
If other, please explain:
100c.
Please explain:
|
| 101 |
During the past three years, has there been a
situation where a participant defaulted which resulted in a significant
loss?
Yes - then answer 101a
No
Not applicable
Other - then answer
101a
101a. How was the situation
resolved? Or if you answered "Other," then please explain:
|
| 102 |
Does the depository have a guaranty fund
independent of stock exchange or other market guarantees?
Yes - then answer
102a
No >> take you to
103
Not
applicable >> take you to
103
Other - then answer
102l
102a. If yes, please respond to
the following questions:
What is the size of the fund?
Rs 73.4 million (including Letters
of Credit submitted by participants and stand-by line of credit from the
Fund's bank).
- then answer
102b
102b. How is the size of the fund
determined? (Choose one.)
By participant
volume
By
asset value
A fixed amount
Other -
then answer 102f
102f. If other, please
explain:
Each broker
participant contributed Rs 100,000 at the inception of the Fund,
subsequently any new broker must contribute an amount that is
proportionate to the size of the fund. The CDS contributes 10% of the fees
that it levies on transactions, to the Fund. Broker participants also
submit Letters of Credit as collateral. The amount of these Letters of
Credits depend on the average cummulative liability of brokers over the
past 12 months as well as on their risk and fixed expenditure requirements
as set out in the Financial Resources
Requirements.
102c. How is the fund
financed? (Choose one.)
Contributions from
owners - then answer
102g
Contributions from participants - then answer 102h
Funding from retained earnings
Other - then answer
102i
102g. If so, what is the amount or
percentage per owner?
102h.
If so, what is the amount or percentage per participant?
102i.
If other, please explain:
The fund is financed by an intital
cash contribution by broker participants (each broker contributed Rs
100,000 at the inception of the Fund, subsequently any new broker must
contribute an amount that is proportionate to the size of the fund.) The
CDS contributes 10% of the fees that it levies on transactions to the
Fund. Investment income from cash received is ploughed back in the fund.
The cash position of the fund as at September 2007 was Rs 14.8 million.
The fund can also draw on Letters of Credit deposited by broker
participants, which amounted to a total of Rs 8.6 million as at September
2007, to meet defaults. The unsecured stand-by line of credit available to
the fund from its bank was increased from Rs 25 million to Rs 50 million
in September 2007.
102d. Who is covered by
the fund? (Choose all that apply.)
Direct depository participants only
The beneficial owner also
Other - then answer
102j
102j. If other, please
explain:
102e.
When is the guaranty fund used? (Choose all that apply.)
When a broker defaults
When a direct participant defaults
Other - then
answer 102k
102k. If other, please
explain:
The Fund is
used when a broker participant fails to meet its settlement obligations.
The Fund can also be used when a broker fails to meet other financial
obligations towards the CDS (e.g non payment of CDS
fees).
102l. If other, please
explain:
|
| 103 |
Does the depository have forms of oversight
management for assessing and monitoring of the following? (Choose all that
apply.)
Participant eligibility
requirements
Participant
volumes
Participant
financial strength
Other loss or
default protections the depository maintains - then answer 103a
Collateral requirements for
participants - then answer
103b
Debit caps
for participants - then answer
103c
Settlement
controls that minimize or eliminate the risk of default by a
participant - then answer
103d
Blocking of
securities movement before receipt of payment
Blocking payment until securities are
moved
Other forms of
risk management used for assessing and monitoring participant
exposures - then answer
103e
Not
applicable
103a. Please explain other loss or
default protections:
103b.
Please explain the requirements:
The value of the Letters of Credit
depend on transactions performed by each participant over the past 12
months from the date at which the required minimum amount of the
collateral is determined.
103c. Please
explain how these debit caps work:
The amount of the letter of credit
submitted by each Participant determines the limit for the Participant's
net cummulative liaibility towards the CDS. This is monitored on a daily
basis.
The Settlement Limit is calculated as follows:
SL = (RLC
+ ALC + GFC)/0.18 + CSP
where,
SL : Settlement Limit
RLC :
Required Letter of Credit
ALC : Additional Letter of Credit
GFC :
Guarantee Fund Contribution
CSP : Capital Surplus
103d. What type or types of
settlement controls (Choose all that apply.)
Blocking or freezing of securities positions - then answer 103f
Controlling DVP settlement - then answer 103g
Simultaneous DVP - then
answer 103h
Other - then answer
103i
103f. Please explain:
(1) Securities are not available for
any other transaction as from the moment a sell transaction is allocated
to a securities account. (2) Securities bought are available for other
transactions only after payment occurs on settlement
date.
103g. Please explain:
Brokers can allocate a sale to a
securities account only if the balance is sufficient to settle the trade.
Moreover, there is close monitoring with the central bank and settlement
banks to verify the availability of funds. The Guarantee Fund steps in the
net settlement mechanism in the event of funds settlement
failure.
103h. Please
explain:
On settlement
date, CDS transfers securities from sellers' securities accounts to
buyers' securities account immediately upon receipt of the confirmation of
funds transfer from the central bank.
103i.
Please identify and explain:
103e.
Please explain briefly how these work:
Participants are required to have
sufficient adjusted liquid capital to cover their risks and fixed
expenditure requirements. This is monitored on a monthly basis.
Participants are required to submit Financial Resources Requirements
returns on a monthly basis. These returns are analysed and reviewed by the
Business Conduct Committee of the CDS.
|
| 104 |
Does the stock exchange have default protections
that extend to the depository, such as the following? (Choose all that
apply.)
Margin requirements for stock exchange
members
Guaranty fund for stock
exchange members
Financial requirements for stock exchange membership
Other -
then answer 104a
No
Not
applicable
104a. Please explain:
|
BUSINESS RECOVERY PLAN
This
section is intended to identify key aspects of the depository's Business
Recovery Plan ("BRP"), including testing requirements and past results,
expected recovery time periods, and the independent review and validation
(if any) of the BRP. |
| 105 |
Do you have a formal business recovery plan?
Yes - then answer
105a
No
Other - then answer
105g
105a. Does your Business Recovery
Plan include: (Choose all that apply.)
Back-up of all computer files
Off-site data storage
Back-up files stored and locked
Off-site operations facility
Other -
then answer 105h
105b. Please identify
both the frequency of testing and the last date of testing for the
following third Party:
Depository Participants/Members
Three times a year
Last date of
testing - 7 September 2007
105c. Please
identify both the frequency of testing and the last date of testing for
the following third Party:
Stock Exchange
Three times a year
Last date of
testing - 7 September 2007
105d. Please
identify both the frequency of testing and the last date of testing for
the following third Party:
Central Bank
Three times a year
Last date of
testing - 7 September 2007
105e. Please
identify both the frequency of testing and the last date of testing for
the following third Party:
Local Brokers
Three times a year
Last date of
testing - 7 September 2007
105f. Please
identify both the frequency of testing and the last date of testing for
the following third Party:
any Other third Party
105h.
If other, please explain:
105g.
If other, please explain:
|
| 106 |
How quickly can the main system be reactivated in
the event of an outage? (Choose one.)
1 - 4
hours
4 - 8
hours
8 -
24 hours
Longer than 24 hours
Not applicable
Other - then answer 106a
106a.
If other, please explain:
|
| 107 |
If a back-up system exists, how quickly can the
back-up system be activated in the event of the main system failing?
(Choose one.)
1 - 4
hours
4 - 8
hours
8 -
24 hours
Longer than 24 hours
Not applicable
Other. Please explain in
107a. - then answer
107a
107a. If other, please
explain:
|
| 108 |
Will the depository publicly announce any system
interruption?
Yes - then answer
108a
No >> take you to
109
Not
applicable
Other - then answer
108g
108a. To whom will the depository
disclose any system interruptions? (Choose all that apply.)
To the depository regulators
To all direct participants
To direct and indirect participants
To the public via the
internet - then answer
108c
In the
press - then answer 108d
Other -
then answer 108e
108b. How will the
depository disclose any system interruptions? (Choose all that
apply.)
By e-mail
By telephone
Public announcement
Press release
Other - then answer
108f
108f. Please explain:
108c.
If so, please list webpage address:
108d. If so, please
list publications:
Local
press
108e. Please explain:
108g.
If other, please explain:
|
| 109 |
In the past three years, has it been necessary to
activate the recovery plan in a live situation?
Yes - then answer 109a
No
Not applicable
Other - then answer
109d
109a. If yes:
How much time
was needed to implement the recovery plan? (Choose one.)
Less than 1
hour - then answer
109b
1 - 2
hours - then answer
109b
2 - 4
hours - then answer
109b
Longer than 4 hours - then
answer 109b
109b. How much time was
needed to recover and restore business to normal operations? (Choose
one.)
1 - 4
hours - then answer
109c
4 - 8
hours - then answer
109c
8 -
24 hours - then answer
109c
Longer than 24 hours - then
answer 109c
109c. What was the impact
to the market? (Choose all that apply.)
All securities settlements took place as scheduled on the same
day with good value
All cash
settlements took place as scheduled on the same day with good
value
All securities settlements
took place one business day late with good value
All cash settlements took place one business day late
with good value
All securities
settlements took place one business day late with value one day
late
All cash settlements took
place one business day late with value one day late
All securities settlements took place more
than one business day late
All
cash settlements took place more than one business day late
As a result of the system failure, all
fines and penalties for late settlements were waived
Even though there was a system failure,
all fines and penalties for late settlements were still assessed
Other -
then answer 109e
109e. If other, please
explain:
109d.
If other, please explain:
|
PERFORMANCE, INSURANCE AND
LOSS
This section is intended to identify the level of
insurance maintained by the depository, and the extent to which coverage
would extend to financial loss incurred by participants and their clients,
including but not limited to losses resulting from operating performance,
security breaches, and employee negligence or misconduct. |
| 110 |
Has there been any material loss by the depository
during the past three years?
Yes - then answer 110a
No
Other. Please explain in
110b. - then answer
110b
Not
applicable
110a. If there has been a
loss, please describe the cause, the final impact and the action taken to
prevent a recurrence:
110b.
If other, please explain:
|
| 111 |
Has the depository been subject to any litigation
involving a participant during the past three years?
Yes - then answer 111a
No
Other. Please explain in
111b. - then answer
111b
Not
applicable
111a. Please explain the
circumstances and resolution:
111b.
If other, please explain:
|
| 112 |
Has the depository realized revenues sufficient to
cover expenses during the past three years? (Choose one.)
Yes for all three
years
Yes
for two of the last three years
Yes for one of the last three
years
None
of the last three years
Not applicable
Other - then answer 112a
112a.
If other, please explain:
|
| 113 |
Does the depository maintain a reserve for
operating losses?
Yes - then answer
113a
No
Not applicable
Other - then
answer 113b
113a. Please describe and
indicate reserve amount:
Contingency Reserve equivalent to
two years' budgeted expenditure (~Rs 27
million)
113b. If other, please
explain:
|
| 114 |
Has the regulatory body with oversight
responsibility for the depository issued public notice that the depository
is not in current compliance with any capital, solvency, insurance or
similar financial strength requirements imposed by such regulatory
body?
Yes - then answer 114a
No
Not applicable
Other - then answer
114f
114a. Please
describe:
- then answer 114b
114b.
In the case of such a notice having been issued, has such notice been
withdrawn, or, has the remedy of such noncompliance been publicly
announced by the depository?
Yes - then answer 114c
No - then
answer 114d
Other. Please explain in 114e. - then answer 114e
114c.
If Yes, please describe:
114d.
If No, why not?
114e.
If other, please explain:
114f.
If other, please explain:
|
| 115 |
Does the depository have insurance for Default?
Yes - then answer
115a
No
Not applicable
Other - then
answer 115c
115a. What is the amount of
the coverage?
Rs
(Mauritian Rupees) 10 million
- then
answer 115b
115b. What is the amount of
the deductible?
Rs
300,000
115c. If other, please
explain:
|
| 116 |
Does the depository have insurance for
Fidelity?
Yes - then answer
116a
No
Not applicable
Other - then
answer 116c
116a. What is the amount of
the coverage?
Rs 10
million
- then answer
116b
116b. What is the amount of the
deductible?
Rs
300,000
116c. If other, please
explain:
|
| 117 |
Does the depository have insurance for Operational
Errors?
Yes - then answer
117a
No
Not applicable
Other - then
answer 117c
117a. What is the amount of
the coverage?
Rs 10
million
- then answer
117b
117b. What is the amount of the
deductible?
Rs
300,000
117c. If other, please
explain:
|
| 118 |
Does the depository have insurance for Errors and
Omissions?
Yes - then answer
118a
No
Not applicable
Other - then
answer 118c
118a. What is the amount of
the coverage?
Rs 10
million
- then answer
118b
118b. What is the amount of the
deductible?
Rs
300,000
118c. If other, please
explain:
|
| 119 |
Does the depository have insurance for Computer
Fraud?
Yes - then answer
119a
No
Not applicable
Other - then
answer 119c
119a. What is the amount of
the coverage?
Rs 10
million
- then answer
119b
119b. What is the amount of the
deductible?
Rs
300,000
119c. If other, please
explain:
|
| 120 |
Does the depository have insurance for the
Premises?
Yes - then answer
120a
No
Not applicable
Other - then
answer 120c
120a. What is the amount of
the coverage?
Rs
6,950,000
- then answer
120b
120b. What is the amount of the
deductible?
Rs
30,000
120c. If other, please
explain:
|
| 121 |
Does the depository have any other insurance?
Yes - then answer
121a
No
Not applicable
Other - then
answer 121d
121a. If so, what is it
for?
Employer's
Liability
- then answer
121b
121b. What is the amount of the
coverage?
Rs 100
million
- then answer
121c
121c. What is the amount of the
deductible?
Rs
3,500
121d. If other, please
explain:
|
| 122 |
Who is the insurance carrier? If more than one
insurance carrier, please list each carrier here and provide your
responses to question's 122a and 122b in corresponding
order.
State
Insurance Corporation of Mauritius Ltd (SICOM Ltd) and Swan Insurance
Ltd
- then answer
122a
122a. Who is the insurance
carrier's parent company, if applicable? (If inapplicable, simply type
n/a.)
n/a
- then answer 122b
122b.
What is the term of the policy?
Annual
- then answer 122c
122c.
Who does the insurance cover? (Choose all that apply.)
Depository
Direct
depository participants
Final
investors
Other - then answer 122d
Not applicable
122d. If other,
please identify:
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| 123 |
If you feel that you would like to provide
additional details on any of the given answers, feel free to provide any
additional comments here (maximum of 5,000 characters) or prepare an
additional document identifying the question(s) you are commenting on and
upload the document under 123a:
123a.
Upload document here:
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PUBLIC AVAILABILITY
|
| 124 |
The AGC encourages respondents/depositories to make
their answers to this questionnaire publicly available. Will you be making
your response publicly available? (For additional guidance, please review
the help feature to this question.)
Yes - then answer
124a
No
124a. If yes, how will you be
making it publicly available: (Choose all that apply.)
Web site - then answer
124b
By
individual request with depository - then
answer 124c
Other - then answer
124i
124b. Please provide web site
address of publicly available questionnaire:
124c. Please
provide name of contact at depository who has been designated to receive
such requests.
Vipin
Mahabirsingh, Managing Director
- then
answer 124d
124d. How would they prefer
to be contacted? (Choose all that apply.)
Telephone - then answer
124e
Facsimile - then answer
124f
By mail/air
courier - then answer 124g
By e-mail - then answer 124h
124e.
Please provide telephone number:
+230-2113507
124f.
Please provide facsimile number:
+230-2116880
124g.
What is the preferred street address for mailing requests?
4th Floor, One Cathedral Square, 16,
Jules Koenig Street, Port Louis,
Mauritius
124h. What is the preferred
e-mail address for such requests:
vipin.mahabirsingh@cds.intnet.mu
124i.
If other, please describe how you will be making the questionnaire
publicly available:
124j.
Have you updated your contact details on the home page of this
questionnaire? If not, please be sure to do so. Simply click on the "Home"
button in the right tool bar and it will return you to the home page
containing your contact detail information.
You have reached the
end of the questionnaire. Please be sure to print your responses and
review them prior to submitting your questionnaire. (To print, click on
the "Print" button in the right hand tool bar. This will open up a
separate window in your web browser. It may take a few moments for the
information to load. Once it has loaded, you will be able to scroll
through your entire questionnaire and then to print, you must choose the
print feature from your web browser. In many cases, this is: "file" then
"print." Clicking on the "print" button alone in the questionnaire toolbox
will not print the questionnaire.) It is important that you ensure the
accuracy of your draft responses before submitting the responses as
submission will finalize your response. When you are prepared to submit
your answers, please return to this question and select "save" (or in the
alternative select "end" from the toolbox) which will then take you to the
submission option provided all the necessary questions have been
answered.
The members of The Association of Global Custodians thank
you for your time and for your helpful response.
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