“Securities law” of Mongolia was first approved in 1994, then determined infrastructure of stock market by reviewing of “Securities Market Law” in 2002.
Mongolian Stock Exchange /MSE/ is established in 1991 and the Settlement and Depository Department were under the structure of MSE. In the year of 2003 this department is segregated from MSE and newly organized as a Mongolian Securities Clearing House and Central Depository Co., Ltd with goal of securities registering, depository, clearing and settlement.
On 15 April, 2016 MSCH&CD is divided into two companies namely Mongolian Central Securities Depository as well as Mongolian Securities Settlement and Clearing House by the resolution of No 147 of Government of Mongolia.
MCSD is responsible for registering and transferring securities certified ownership rights; performing OTC securities clearing and settlement; updating central depository information data base and implementing custodian service in accordance with international standards.
Depository, Registration of Ownership Rights and Custodian Department
- Based on the contract, safekeeping of the issuer’s securities registered at the competent authority at the central depository
- Registration of the securities owners
- Securities safekeeping and ensure confidentiality
- Open and close owner’s accounts at the central depository following the concerning regulation
- Complete the ownership rights transaction
- Approved trade deal sent from the trading entity
- Inheritance certificate
- Securities gift
- Statement regarding the endowment of the ownership rights
- Statement regarding the approval of ensuring the ownership rights certified by the securities.
- Manage custodian service and registering custodian members at the central depository
Finance and Accounting Department
- Plan and organize company’s management, finance, accounting, and economic activities
- Receive primary documents sent from securities firms and clearing banks and complete clients’ cash transaction settlement at the central depository
- On the basis of the approved trade deal of the securities trading entity, determine the fee
Administration and Legal Department
- Develop and implement procedures and legal guidelines regarding company’s internal operations
- Monitor the implementation of all relevant legislations and regulations among institutions
- Provide legal information to the securities market participants and customers
- Manage company’s HR
IT, Strategy and Public Relations Department
- Provide reliable continuity of the network
- Ensure IT safety
- Software development
- Ensure robust operations of the equipment
- Consider possible risks the settlement and depository may encounter and develop regulations to be followed
- Promote operations of the capital markets and company at public level
- Deliver information regarding the clients’ accounts at the central depository
- Supervise company’s website and regularly provide with information
- Organize internal and external trainings and seminars
- Direct marketing activities in order to deliver the company’s services at high quality
- Receive foreign delegates and expand foreign relations
Internal Audit
- Monitor company operations at all level under direct supervision of the CEO
- Investigate and conclude client’s requests and entity’s submitted documents
- Approve the annual working plan and make inquisition into it
- Oversee the resolutions and decisions of the Board of Directors