Riyadh – Mubasher: The Securities Depository Center Company, known as Edaa, has officially announced its approval of a request submitted by Audi Capital to cancel its custody membership.
The decision follows a formal application by the financial institution, according to a bourse filing.
Moreover, the resolution has been processed in strict accordance with the prevailing regulatory and technical requirements that govern the Saudi Arabian capital market infrastructure.
Edaa, a core subsidiary of the Saudi Tadawul Group, serves as the central entity responsible for the registration, settlement, and safekeeping of securities traded on the Saudi Exchange (Tadawul).
In its latest regulatory update, the center confirmed that it has finalized the procedures necessary to grant Audi Capital’s request for the cessation of its custody services.
This administrative action reflects the ongoing adjustments within the Kingdom’s financial services sector as firms realign their operational focuses and service offerings.
The cancellation of a custody membership is a significant procedural step within the Saudi financial ecosystem. Custodians play a vital role in the market by holding securities on behalf of investors, thereby minimizing the risks associated with the loss or theft of assets.
Furthermore, these members are typically responsible for a range of essential administrative functions, including the collection of dividends, the processing of corporate actions, and the facilitation of settlement for trades executed on the exchange.
By rescinding this membership, Audi Capital will no longer operate as a designated provider of these specific depository-linked services under the Edaa framework.
Edaa emphasized that the approval was contingent upon Audi Capital meeting a comprehensive set of regulatory and technical requirements. These standards are designed to ensure that the transition or termination of such roles occurs without disrupting the broader market or compromising the integrity of the depository system.
The regulatory oversight provided by Edaa ensures that all legal obligations to clients and the exchange are fulfilled before a membership is formally dissolved. This process involves a thorough review of the member's technical connectivity to the depository system and its compliance with the Capital Market Authority (CMA) regulations.
