Function and Legal Nature of the Performance of Central Securities Depository and Settlement of Funds Company (SAMAT)

Effective and efficient settlement is one of the essential requirements for the management of a large volume of transactions in the capital market. Central Securities Depository and Settlement of Funds Company is the trustee of registration affairs, deposition, and settlement in the stock market. The determination of the nature and role of SAMAT in these affairs is the prerequisite for recognition of the rights and duties of this company and each of the transaction parties, which have been investigated in this research. With regard to the role of SAMAT, such ideas as "being a trader", "pure calculation", and the theory of "delegation in settlement" have been addressed while each of them requires a different implementation mechanism. Studying the rules and regulations governing the capital market and adapting them with the common views, one may come to the conclusion that the mechanism for the settlement implementation of the central depository company has been designed based on the mechanism of "binding payment netting"; and SAMAT as the representation in this mechanism, is responsible for "delegation in the settlement" of transitions.