a. The Board of Directors of the Exchange shall establish a department to be known as the “Securities Depositary Center” which shall be the sole entity in the Kingdom authorized to practice the operations of deposit, transfer, settlement, clearing and registering ownership of Saudi Securities traded on the Exchange. The Exchange’s Board of Directors may convert the Securities Depositary Center into a company after obtaining the approval of the Authority’s Board for the conversion. The Board may give its approval indicating the requirements of the company’s structure and its operations, as it deems appropriate and necessary for the safety of the market and the protection of investors.
b. The Depositary Center’s operating rules shall specify the sound and efficient procedures which shall ensure the efficient operations for registration, settlement and clearance of Securities traded on the Exchange in a regulatory manner, including the procedures to be followed for the disbursement of funds to investors following settlement. The Depositary Center may maintain cash accounts for settlement and clearance purposes of transactions in the context of its operations. The Authority has the power to adopt, amend, repeal or suspend any of the Depositary Center’s operating regulations or rules if it deems appropriate.