Section 17: Charging or pledging of securities

17. Charging or pledging of securities (1) Where a deposited security is charged or pledged by a depositor in favour of any person, the CDS or a participant, with or through whom the securities account of the depositor is maintained, shall on a request, in writing, [Issue 1] S8 – 10 Revised Laws of Mauritius made by the depositor or the other person, transfer or cause to be transferred such security into the securities account of the other person maintained for such purpose. (2) Where a request is made by the other person under subsection (1), the request shall be supported by documents evidencing the charge or pledge in his favour. (3) The securities account maintained pursuant to subsection (1) shall be designated as the “Pledged Securities Account”. (4) Where a charge or pledge over a deposited security has been discharged or released, the CDS or the participant, as the case may be, shall on receipt of a notice in writing from the other person confirming the fact, transfer the deposited security into the securities account of the depositor. (5) The provisions of this Act relating to the transfer or withdrawal of deposited securities shall apply, mutatis mutandis, to securities in the Pledged Securities Account. (6) Where a pledge of a security is effected in terms of subsection (1), the entries in the records of the CDS shall constitute— (a) an endorsement of the security for the purpose of Article 2076 of the Civil Code; and (b) a registration of the pledge of the security in the records of the issuer for the purpose of Article 2077 of the Civil Code.