| BM's Services in the Capital Markets
BM’s sub-custodian services include; “Trade Settlement” via settling trading securities in favor of customers including banks and foreign institutions; “Corporate Actions” via notifying customers with all corporate events; and “Income Collection” via collecting entitlements, i.e., cash or stock dividends via “Book-keeping”. This is in addition to the “Proxy Voting” service by attending GMs and voting on behalf of customers, either banks or foreign financial institutions, as well as “Reporting & Customer Liaison” by means of sending securities reports .
Central book-keeping is the natural development that replaces the handling of physical securities. Balances are centrally kept nationwide at the Misr for Clearing, Settlement and Central Depository (MCSD) being the only central body in this field.
Along with its leading role in the securities market, BM provides custodian services via dealing with customers through its branches nationwide. The branch provides all securities services to customers via contacting and corresponding with the Securities Division, i.e. the customer deals with the branch not with the H.O.’s Securities Division as follows:
* The customer opens a securities account at any BM’s branch in addition to any other account (current – saving – pension…etc,) to effect central book-keeping transactions and acquires a code registered at the stock exchange, provided that the name is identical to his/her ID and the birth date is recorded on the said code. The customer should also provide the following documents:
1) A securities book-keeping contract executed with the branch.
2) His/her specimen signature , approved by the branch.
3) A clear copy of his/her ID sealed with the branch seal as being a certified copy.
Then the customer deposits shares (in their paper form) at the branch that receives the same after reviewing and checking ownership evidence. The Financial Settlement and Follow up Department(Central Securities and Custody Dept.) then sends a statement to the branch to be handed to the customer after settling the depositing process at MCSD.
BM sells and purchases securities in favor of its customers through its nationwide branches effectively and on the spot to ensure secrecy. The Bank established information and trading halls where prices are displayed on the spot on screens.
To purchase shares using the central book-keeping system, the customer applies to the branch to fill the purchase form stating his/her instructions regarding purchase price, type, and quantity. Accordingly, the Securities Division implements the customer’s instructions and sends a copy of purchase invoice to the branch to notify the customer of the same and hands him/her the copy stating the details of the purchase.
To sell shares via central book-keeping, the customer applies to the branch which provides the Securities Transactions Department with the “Sale Order Form” stipulating the customer’s instructions regarding sale details and conditions (minimum sale price, type and quantity of shares…etc,). The Department implements the customer’s instructions and notifies the branch of the same and sends a copy of the sale invoice to the branch to be handed to the customer. Moreover, the Department credits the sale proceeds to the branch to be credited to the customer’s account.
Moreover, the Securities Division provides a host of services such as crediting share dividends to customers’ accounts held with different branches upon declaring cashing coupons of any shares, in addition to grossing up customers’ accounts by any bonus shares and notifies branches with new balances to inform customers of the same.
The Bank effects financial settlements on securities transactions (sale – purchase) effectively and expeditiously thanks to its team work, to be credited to customers’ accounts via BM’s branch network. In case of any inquiry regarding securities, the customer may apply to any of BM’s branches
In the light of BM’s interest to square with state-of-the-art capital market services and fulfill the needs of all customers, BM embarked upon being registered as a certified registration agent at Cairo and Alexandria Stock Exchanges by acquiring the relevant license. Companies willing to register their shares at the stock exchange or the central depository or amend their status at the stock exchange as per the organizing regulations.
1- Registered Agent in Stock Agent:
BM is considered as registered agent for obtaining the license for conducting this project for registering the companies shares in the clearing settlement and central depository ( MCSD ) being the only central body in the field to remedy its position.
2- In the light of constructing the Companies:
3- Operations for handling the securities:
To set-up the rules for the closed and opened registration as well as covering the purchase contractor.
To set up the public and private sectors for the shares for the first or second market.
To set-up the bonds fixed and changing revenues private and public sectors.
Covering and guarantee of registrations of shares bonds.