Central Depository is responsible for the registration and management and conservation of listed securities in the market and transfer of ownership after the completion of the settlement, and in addition to the payment of net payments and net receivables from brokers and clearing through an approved bank.
Functions of the Central Depository and Registry:
The importance of Central Depository in the Libyan Stock Market has numerous tasks including:
•the settlement of trades that take place in the Libyan Stock Market.
• Conduct operational assessments (the distribution of cash dividends and paper, capital raising, merger . etc) in accordance with the resolutions of the general assembly’s of the exporting companies of the security.
• Give a unified number for the investor and the figure for the Stocks traded in the market.
• Keeping records of shareholders and management on behalf of the issuers of securities.
• Statements of securities accounts of shareholders.
Objectives of the Central Depository:
• The introduction of delivery or receiving versus payment, the buyer will not receive the securities until the seller receives the transaction.
• Assisting in raising the efficiency of the capital market through the application of international standards used in global financial markets.
• Work to reduce the risks arising from the receipt and delivery of the securities trader between the investors.
• Save time and effort by dealing through booking entries instead of the physical trading of securities.
• To provide security for the investor and gain confidence through the completion of the financial settlements in a timely manner for it.
• Ensure that benefits to the shareholders, resulting from the securities in the specified timing.
• To provide security and stability for investors to interact with the market through information confidentiality imposed on their own and not accept any orders or informally documents in the implementation of any action.
First: Central Registry:
Central Registry is automated and a sophisticated alternative to the records of shareholders in which they abide by the issuers of securities.
Central Registry Services:
• Holding the records of shareholders.
• Issuing statistics and reports.
• Implementation of the decisions related to the issuers Capital.
Second: The Central Depository:
Is a system to replace the handling on the securities through booking entries instead of treating them through the instruments and physical shares, and this in turn leads to facilitate the movement of trading in the stock market and booking entries instead of the stock material.
Importance of the Central Depository system:
1- Reduces the risk of retained securities.
2-Reduces the cost of investing in securities.
3-The company's doesn’t need to issue of physical shares when issuing new securities.
4-The possibility of transfer of ownership to the heirs according to the legitimate rights and implementation of wills