Law Updates

FSA Amends Clearing and Settlement Regulation

The FSA published in this week’s Official Gazette a Decision Amending Some Provisions of the Regulation Governing Clearing and Settlement which included a minor change to article 14 of the regulation.

Article 14 of the regulation outlines that upon executing a sale or purchase transaction, the securities are recorded in the electronic system under the status of “Deemed Sold Awaiting Settlement” or “Deemed Bought Awaiting Settlement, Sale Permitted,” respectively. Ownership is registered to the buyer on the day of settlement, and this settlement is considered final.

The amendment makes a small specific change to the wording of the original article 14 by stipulating that the settlement cannot be “conditional or deferred”.

This amendment enters into force tomorrow. You can read the text of the decision in full on the link below: