Government Securities Dematerialization

Link to law: http://www.moj.gov.jm/laws/government-securities-dematerialization
Published: 2010-02-16

G O V E R N . N T SECURITIES D E W TERIALIZA TION

THE GOVERNMENT SECURITIES
DEMATERIALIZATION ACT

ARRANGEMENT OF SECTIONS

PART I. Preliminary
1 . Short title.
2. Interpretation.
3. Object of Act.
4. Application.

PART 11. Administration

5. Registrar.

6. Register.

7. Register is prima facie evidence.

, PART 111. Dematerialization of Government
Securities

8. Dematerialization.

9. Conversion procedure.

PART IV. General

10. Regulations.
1 1 . Consequential amendments to other Acts.

12. Minister may amend Schedule.

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G O VERNUENT SECURITIES DEUA TERIALIZA TION

THE GOVERNMENT SECURITIES
DEMATERIALIZATION ACT

Act
2 of 2010.

[16th February, 201 0.1

PART I. Preliminary

1. This Act may be cited as the Government Securities Shorttitle.
Dematerialization Act.

2. In this Act, unless the context otherwise requires- Interprets-
tion.

"Bank" means the Bank of Jamaica established under the
Bank of Jamaica Act;

"commencement date" means the date of commencement of
this Act;

"dematerialized" in relation to a security means that the
prima facie evidence of legal title to the security is
esiiiblished by an electronic book entry;

"dematerialization" means the issuance and recording of
securities in electronic format;

. "electronic", in relation to - an electronic transfer, means
having electrical, digital, magnetic, wireless, optical,
electromagnetic or similar capabilities and references to
carrying out any act "electronically" shall be similarly
construed;

"Government securities" means any securities issued by the
. Government under an Act specified in the Schedule; Schedule.

"immobilization" means the process by which the under-
lying physical certificates relating to Government secu-
rities are, deposited with and are held by a depository
and the'holders do not receive a physical certificate

. upon purchase of the security and "immobilized" shall
be construed accordingly;

"licensed central securities depository" has the meaning
assigned to it in section 67A of the Securities Act;

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GOVERNMENT SECURITIES DEUA TERIA LIZA TION

"Register" means a register kept under section 6;

"Registrar" means the Bank or the licensed central
securities depository, person pr body designated under
section 5 as the Registrar.

Object of 3.' The object of this Act is to make provision for the
Act immobilization and dematerialization of Government securities.

Appl~cat~on 4. This Act applies to securities issued by the Govepnent
Schedule under any Act specified in the Schedule, whether before br after

1 I

the commencement of this Act. . .
a

L i d PART 11. Administration

Registrar. 5 . 1 ) subject to sibiection' (i), b r the pu&,bjes of this
Act, the Bank is appointed the Registiar bf ~ 6 k i k m e n t secu-
rities. : . . . , ( ? . . . .,., . . ' ) _I . . - , ...

(2) The Minister may by order, designate a licensed cen-
.tral.securities depository, or other person .or. body as the Regis-

. :. . :. trar. , . ., . . . I ., ' I .

Reg~ster. 6 . 4 1 ) For the p&poses of this ~ c t ; the' ~ k ~ i s t r a r shall
cause to be kept a register to be known as the Register of
Government Securities. . s .,: ' . . , I
. . ' ,. ' ,. (2)- The Registrar shall enter in the 'Register. a record

- a . . - - . - . of- . . : , i ' . , + I _ ( a ) rights ari$ing hom ' .deniateri?lixd ~Gie rknen t secu-
i . . . . . . rities; , .

: ..

. I (b) holders . . . of these rights at any . , . . given . . . i time;:. . .
l . , I

: (c) any possible rights of third parties to such securities; and I
: (d) such particulars as,may be prescribed. - :, I

Register is ' 7 . 4 1 ) The Register shall be prima facie evidence of the
prima facie
evidence. legal title to any Government sec'&ty entered therein:

a
(2) A copy of extract of the Register, duly certified

by the Registrar, shall be admissible in evidence in any court.

PART 111. Dematerialization ofGovernment
Securities 1 + .

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GOVERNMENT SECURITIES D E W TERIA LIZA TION 5

8 . 4 1 ) On or after the commencement date, every Govern- Dematerial-
ment security shall be issued as a dematerialized security. ization.

(2) The'legal title to any Government security'issued after
the commencement date shall be acquired,' evidenced and trans-
ferred electronically and without a writterihstrument. , i.

(3) On or after the commencement date, payment of
interest on a dematerialized Government security shall be'effec-
ted by electronic means and in accordance with the provisions of
this ~ c t and &y regulations'mide hereunder.

9 . 4 1 ) The prbvisions of this section apply to the conversion Conversion
of Government securities into dematerialiied Governnient secu- proced"m.
rities. ' . . , .

(2) The Government securities shall be delivered to the
Registrar who shall credit the principal value of the demateri-
alized seckitied to the securities account of p e respective hol-
ders, whereupon such securities shall be converted into dema-
terialized Government securities.

(3) The Registrar may, by notice published on at least
two occasions in the Gazette and in a daily newspaper circulated
in Jamaica, direct all holders of Government securities to deliver
their securities to the Registrar for the purpose of their conver-
sion into dematerialized Government securities.

(4) A notice under subsection (3) shall specify the time
period, commencing on the first date of such publication, for the
conversion of Government securitilks.

(5) After the expiration of the time period Government
secutities that are not materialized may o.nly be tran~ferred after
they have been converted to dematerialized Government securi-
ties.

PART IV. General

10. The Minister may make regulations for the purposes of Regulations.
giving effect to the provisions of this Act, and in particular, such
regulations may contain provisions in relation to the following
matters-

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6 GOVERNMENT SECURITIES DEUA TERL~LIZA'TION

(a) the issue, administration, registration, transfer, redemp-
tion and payment of interest on and the holding of

1

immobilized Government securities and dematerialized
Government securities;

(b) third party rights to dematerialized Government secu-
rities;

(c) the keeping of the Register; and

(d) any other matter required under the Act to be prescribed.

consequential 11. For the purpose of giving effect to this Act, the Minister
amendments
to other ~ c t s may, -by order subject to negative resolution, inake 'such
Schedule ,amendment to any Act specified in the Schedule as appe& to

him to be necessary or expedient to ensure consistency with the
I provisions of this Act.

, Ministermay "12. The Minister may, by' orde* subject to negative reso-
amend Sche-
dule. lution, amend the Schedule.

SCHEDULE ' (Sections 4, l l and 12)

Specified Acts

1 . Debenture Registration Act

2. Debentures (Local) Act

3. Land Bonds Act

4. Loans (Equity Investment Bonds) Act

5. Loans (National Development Bonds)
Act -

6. Loans (National Savings Bonds) Act

7. Local Registered Stock Act

8. Treasury Bills Act

'

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