Question 31. What is Custody Service?

As the number of securities increases, it becomes difficult to store them and to fulfill the transactions related to them in a timely manner.

Some banks’ Securities Departments provide custody services on behalf of their clients.

In this case, after the customer delivers the Share Certificate to the bank, the bank makes the necessary collection in dividend distribution, participates in the capital increase on behalf of the customer in capital increase, exercises the Pre-emptive Right on time, issues Bonus Shares
Receives share certificates on time.

Banks that provide custody services to other countries can also attend and vote at General Assemblies on behalf of the client, as his/her proxy. Of course, banks that hold large amounts of the same share certificates can be influential in General Assemblies.

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