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The Saudi Stock Exchange (Tadawul) would like to announce the incorporation of the Securities Depository Center Company (‘Depository Center’) as a closed joint stock company fully owned by Tadawul. The Depository Center has been established in accordance with the Saudi Companies Law issued by Royal Decree No. M/3 dated 28/01/1437, with a capital of (SAR 400,000,000) divided into (40,000,000) shares, with a nominal share value of (SAR 10).
Such establishment was upon the CMA approval of Tadawul’s Board of Directors request in relation to converting the Depository Center into a joint stock company in accordance with the Capital Market Law (CML) issued by Royal Decree No. M/30 dated on 2/6/1424H.
The Depository Center main activities include registering investment portfolios in the deposit and settlement system; ownership registration, deposit, transfer, settlement, and clearance; and registry of ownership limitations for deposited securities. In addition to linking market members and settlement agents with the deposit and settlement system. Furthermore, the Depository Center shall links and manages logs of securities issuers, and regulates issuers’ general assemblies including offering remote voting services, reports, notifications, necessary data as well as providing other related services in accordance to the CML.
Through this conversion, Tadawul aims to achieve its strategic objectives in relation to developing infrastructures of subsequent procedures to execute transactions in alignment with global standards. It also aims to enhance the efficiency of deposit and registration services offered by the depositary center in alignment with the 2030 Vision through developing a more resourceful environment that fosters excellence within all sectors related to the capital market.
Lastly, Tadawul is currently working on meeting all required legal processes in order to facilities the operational commencements of the Depository Center as per the CML and its supplement regulations.
