Depository | PDS Group

DEPOSITORY

It serves both the Equity and Debt markets providing secure settlement, core safekeeping and corporate action activities for community members. It also provides electronic, real-time access for members to keep track of balances under guardianship. It is capable of performing tax services for both the equities and fixed income markets.

It has depository authority from the SEC for its market functions and a trust license from the BSP for its fiduciary and post-settlement functions.

As a master custodian for the market, PDS Depository aims for heightened public protection and market integrity.

Safekeeping

As a depository for the equities market, PDTC centralizes management of shareholders information through dematerialization. Dematerialization eliminates the need to deliver paper certificates for securities traded, hence it eliminates the risk associated with maintaining physical certificates and speeds up the processing and settlement of a trade transaction. The depository services for the fixed income securities market are provided for securities issued in scripless form.

The securities held in the depository are registered under the legal name of “PCD Nominee” for equity and “PDTC Nominee” for fixed income securities with the beneficial ownership reflected via book-entry credits to its securities accounts of the depository participants in the depository system.

Lodgement

Lodgement refers to the deposit of eligible securities into the PDTC Depository. Securities lodged are deemed fungible and eligible for book entry settlement and for other types of transactions such as transfers, pledges or encumbrances. Legal title to the securities is registered under the Depository Nominee but is beneficially owned by the Participants or by the Participants’ clients.
Pledge

Pledge is an electronic process by which securities can be flagged to serve as an accessory to a contract intended as collateral to a principal obligation.

Pledge Initiation
The process will commence with the pledgor- participant entering the pledge instructions in the system. The pledgee- participant will confirm the entries made by the pledgor- participant consistent with their pledge agreement. PDTC shall have no obligation to verify the terms of the Pledge or compliance therewith by either party thereto. Securities that have been pledged are flagged in the pledgor’s securities account and shall not be eligible for any transaction unless confirmed by the pledgee- participant. All dividends, rights and entitlements due for the pledged securities shall pertain to the pledgor- participant.

Pledge Closure
This shall pertain to the full release of the pledged securities upon the agreement of both the pledgor/ pledgee- participant.

Corporate Action

Corporate Action refers to an action taken by an issuer as a corporate entity requiring (mandatory events) or involving the participation (voluntary events) of the holders of its Securities, such as but not limited to shareholders meetings, interests, dividends, redemptions and right offerings.

PDTC computes the entitlements for all securities lodged with the Depository. The amount of entitlement for lodged securities in respect of a Corporate Action shall be determined based on:

  • Total number, as of Record Date, of the proper Securities registered in the name of Depository Nominee
  • The number, as of Record Date, of the proper Securities in the Securities Account of each Participant, as computed and confirmed by the Transfer Agent and reconciled by PDTC, rounded down to the nearest whole number or centavo as the case may be.

Entitlements are paid and distributed by PDTC Depository by crediting the bank account and/or the securities account of the Participants.

Upliftment

Upliftment refers to the withdrawal of securities from the PDTC Depository. Upon entry of the Uplift instructions by the Participant, the Securities sought to be uplifted shall be frozen in the Participant’s Securities Account and shall no longer be eligible for Settlement through the PDTC System.

The Uplift Instruction may be cancelled by the Participant at any time prior to its confirmation by PDTC. Upon confirmation from the Transfer Agent or Registry that the Securities have been deducted from the holdings of the Depository Nominee, the uplifted securities shall be debited from the Securities Account of the Participant.