Central Depository

The Act removes the monopoly position of the Slovak Securities Centre and liberalises activities connected with evidence of book-entered securities. At the same time, it introduces a two-stage evidence of book-entered securities which is common in the countries with an advanced capital market. The central evidence shall be administered by the Central Depository and the evidence on the second stage shall be administered by particular members of the Central Depository.

The Central Depository is a legal entity established in the form of a joint stock company registered in the Commercial Registry which exercises activities connected with evidence of book-entered securities. The main activities of the Central Depository include evidence of book-entered securities and immobilised securities in registers of issuers, evidence of owners of book-entered securities on securities owner accounts and on clients accounts of members of the Central Depository, evidence of changes of book-entered securities on the securities owner accounts and immobilised securities, assignment and cancellation of ISINs, organisation of the system of clearing and settlement of transactions with Instruments and keeping lists of shareholders of materialised shares.

The following entities are allowed to become founders and owners of the Central Depository: the Ministry of Finance of the Slovak Republic, the National Bank of Slovakia, Securities Dealers, insurance companies, asset management companies, other Central Depositories, stock exchanges, or legal persons with registered seats in other countries with similar business activities.

The Central Depository is allowed to issue only book-entered registered shares and its minimum registered capital is SKK 250 million.

The Central Depository may not amalgamate with another legal person, split or to be a subject of contract on sale of enterprise. Without prior approval of the Office, the Central Depository may not perform any merger with a person other than a Central Depository or a legal person having its domicile abroad and performing similar business activities.

A member of Central Depository is a person entitled to, after satisfaction of mandatory conditions and operating rules, keep accounts of book-entered securities owners within a technical system of Central Depository. The basic condition for membership in the Central Depository is an approval for providing of core investment services.

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