Securities are supposed to be contractual papers that support the claim of a certain individual as far as right to interest, and financial benefits are concerned. They are essentially certificates or protections guarding the rights of the investors. In Canada there is a well laid out system which covers most aspects of such agreements.
The most important term in the arena of Canadian securities market is that of �acceptable securities location�. By definition it denotes the people who might be able to hold these securities. There is also a provision for being able to hold it for someone else . If the said person is able to provide a written document that he or she has been handed over the right to hold that security he or she would be able to escape a possible fine, to be paid in cash.
However there is an exception to the rule. If the one holding it on behalf of a member happens to be a financial organization, especially a bank, and also happens to be his or her respective financial agent they could be exempted from the rule. They also perform the function of being transfer agents for the respective securities.
There are certain issues that have to be sorted out in the rules that operate at present. The confusion takes place with the intentions of the rules.
The actual issue seems to be that the rule was created for the securities to be sent, to the transfer agents, for enrolling them once more, as opposed to entrusting them with its responsibility. The exceptions could be applied in a better way if they were clarified a little more. The correction of the house keeping clause has been done so that the exceptions could be made more meaningful and easy for people.
The rules that have been advised could leave out the following things, which means that they might not influence them:
– The structure of the market
– The members and the non-members
– The expenses for confirmation
– And last but not least
– The additional laws
The rules, laid down are not harmful for the market. In Canada the interests of the securities holders are being looked after, by changing or improving the rules wherever they are found clashing with consumers’ interests. Even the patterns of industrial activities are being regulated in their favor.
Last Updated on : 26th June 2013