The Securities Depository Center (SDC) (

Arabic Arabic (, ' ; , ' or ) is a Semitic language spoken primarily across the Arab world.Semitic languages: an international handbook / edited by Stefan Weninger; in collaboration with Geoffrey Khan, Michael P. Streck, Janet C. E.Watson; Walter ...

: ) is the

central securities depository A central securities depository (CSD) is a specialized financial organization holding securities like shares, either in certificated or uncertificated ( dematerialized) form, allowing ownership to be easily transferred through a book entry rather t ...

of Jordan. It is a public utility institution established in the Kingdom by the

Securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...

Law of 1997.

History

The Securities Depository Center was established in 1997. The Securities Law of 1997 separated the functions of the Amman Financial Market (AFM) and created the

Jordan Securities Commission The Jordan Securities Commission (JSC) (Arabic: ) is a public institution with financial and administrative autonomy in Jordan History The Jordan Securities Commission (JSC) was established in 1997 as a public institution with financial and admi ...

(JSC), the

Amman Stock Exchange Amman Stock Exchange (ASE) is a stock exchange private institution in Jordan, based in Amman. History The ASE was established in March 1999 as a non-profit, private institution with administrative and financial autonomy. It is authorized to ...

(ASE) and the Securities Depository Center (SDC). The SDC subjects to the JSC's monitoring and supervision

Goals and objectives

* Enhance the confidence of

investors An investor is a person who allocates financial capital with the expectation of a future return (profit) or to gain an advantage (interest). Through this allocated capital most of the time the investor purchases some species of property. Type ...

in securities and enable them to follow up their investments with ease by establishing a central registry to safe-keep the ownership of securities. * Reduce

risks In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect to something that humans value (such as health, well-being, wealth, property or the environm ...

related to settlement of trading transactions executed through the market by implementing by-laws, instructions and procedures that are fair, fast and safe.

Functions and services

The SDC, which has a legal personality with financial and administrative autonomy is the only entity in Jordan that is legally empowered by the Securities Law of 2017 to oversee the following responsibilities:- * Registration of securities * Deposit of securities * Transfer of ownership and safekeeping of securities * Clearance and settlement of securities transaction In order for the SDC to perform its operations, it was necessary to establish a central registry and depository of authenticated shareholders along with a central settlement process. This ensures that the

shareholders A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal ...

registers of all public shareholding companies are held and maintained at the SDC in electronic form. The SDC is one of the major institutions in the Jordan Capital Market as it holds the ownership registers of all issued shares. It has been assigned, in cooperation with the JSC and the ASE, the task of developing the Jordan Capital Market. In addition to the SDC's responsibilities that are assigned by virtue of the Securities Law, the SDC performs the following tasks in order to fulfill its goals: * Supervision and monitoring the SDC's members' activities related to the SDC. * Set and apply rules related to the SDC's facilities and how to benefit from its services. * Express opinion on legislations and its amendments that related to the SDC's works and propose legislations and procedures to guarantee protection the investors, the owner of the securities. * Issuing reports and publish information and statistics about the SDC's activities * Establish cooperative relations with other securities depository centers and Arab, regional and international organizations in the securities field and conclude agreements to serve the objectives of the SDC. * Establish and manage Settlement Guarantee Fund.Security Depository Center of Jordan places Red Hat Enterprise Linux at center of its open source strategy, 16 November 2009 article

Recognition

* The SDC has been recognized by the Association of National Numbering Agencies (ANNA) and the JSC as the sole numbering agency in Jordan for the assignment of International Securities Identification Number (ISIN). All share books at the SDC are numbered according to the ISIN numbering scheme. * The SDC is a member of the

Federation of Euro-Asian Stock Exchanges The Federation of Euro-Asian Stock Exchanges (FEAS) is a non-profit international organization comprising the main stock exchanges in Eastern Europe, the Middle East, and Central Asia. The purpose of the Federation is to contribute to the cooperat ...

* The SDC is a member of the Africa and Middle East Depositories Association

References

External links

SDC website
{{DEFAULTSORT:Securities Depository Center 1999 establishments in Jordan Organizations established in 1999 Divisions and subsidiaries of the prime ministry (Jordan) Central securities depositories Non-profit organisations based in Jordan