Future version: Effective from 15 Jul 2026
Rule Violation | Whether composition may be offered | Composition Amount that may be offered by the Depository, where the Depository has determined the Depository Agent to be in volation | Mandatory minimum penalty imposable by the DC | |||
Rule Number | Brief Description of Rule | 1st Violation | 2nd Violation | 3rd Violation | ||
| Rule 10 — Restriction of Depository Agent's Activities and Termination | ||||||
10.2A | Restrictions and Conditions on Depository Agent’s Activities | |||||
| Depository Agent to comply with the Depository’s restrictions and conditions on its activities | Not Compoundable | Not Compoundable | $10,000 | |||
10.3 | Obligations of Depository Agent on Notice of Restriction and/or Conditions or Termination | |||||
| Depository Agent who is informed of any restriction and/or conditions imposed on its activities, or that it is terminated, to give notice of the restriction and/or conditions or termination to its Sub-Account Holders and inform its Sub-Account Holders that they may transfer their Deposited Securities to another Depository Agent or account. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. | |
| Depository Agent who is informed of any restriction and/or conditions imposed on its activities, or that it is terminated, to transfer the Deposited Securities of the Sub-Account Holders to such other Depository Agents or accounts as indicated by the Sub-Account Holders. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. | |
| Depository Agent who is informed that it is terminated to transfer its Deposited Securities to another Depository Agent or account within the stipulated notice period. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. | |
10.5 | Duties of Depository Agent on Termination | |||||
| Terminated Depository Agent to pay all outstanding fees, charges and other monies owing to the Depository. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. | |
| Terminated Depository Agent to fulfill all outstanding obligations to the Depository, including furnishing of auditor's certificate or banker's guarantee. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. | |
| Terminated Depository Agent to continue to comply with the Depository Agent Terms until its termination is effective. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. | |
Added on 15 July 2026.