"The Cyprus Securities and Stock Exchange (Central Depository and Central Securities Registry) (Amendment) Law of 2011"
The purpose of the said amending legislation is to accommodate specific comments and proposals of the European Central Bank (ECB) with regard to the Cyprus Stock Exchange/s Central Depository and Central Securities Registry. In particular, this Law amends Sections 3, 4 and 6 of the Basic Law. Amendments to Sections 3 and 4 intend to limit the scope of the CSE/s decision making powers to technical issues only, thereby avoiding risk of any undue interference with settlement finality – related issues.
Furthermore, Section 6 of the Basic Law is amended so as to clarify the scope of CSE/s liability vis-a-vis its clients arising from the operation of the Central Depository and the Central Securities Registry and with regard to the correct recording of stock exchange data and/or transactions. According to the new provisions, the CSE is liable for the correct recording of stock exchange and transactions by virtue of the provisions of the Stock Exchange legislation and/or the relevant Regulations. However, the CSE has no liability for any action or omission of members, Custodians, Trustees, Administrators, Receivers, Representatives, Investors or any other person having the right to record stock exchange data in the Central Depository and Central Securities Registry or having the right to perform any action relevant to the securities recorded in the said Depository/ Registry.