Article (1)	These Instructions shall be cited as (Custodian Licensing Instructions) for the year 2003, and shall come into effect as of 1.5.2003.
Article (2)	a. The words and phrases stated in these Instructions shall have the meanings assigned thereto hereunder unless the context indicates otherwise.   The Law: The Securities Law in force.   The Commission:   The Securities Commission.   The Board:   The Board of Commissioners of the Commission.   Center : The Securities Depository Center.   The Company : Any juridical person providing custodial services in respect of securities.   b. The words and phrases, which are not defined in these Instructions, shall have the meanings assigned thereto in the Law unless the context indicates otherwise.
Article (3)	The Custodian’s activities shall be governed by an agreement concluded with the Client. The Custodian’s practice shall include the following: 1) Custody of the Client’s securities. 2) The organization and maintenance of Clients’ records; 3) Delivery on the Clients’ behalf of securities to the selling Financial     Broker and receipt thereof from the buying Financial Broker. 4) Sending periodic reports to Clients about their securities portfolios     and cash accounts. 5) Notifying Clients of any actions by Securities Issuers whether in     respect to interest, profits or rights pertaining to such securities. 6) Receipt on the Clients’ behalf of the interest, profits and rights     pertaining to the Clients’ securities. 7) Voting by proxy for Clients at of the Issuer’s ordinary and     extraordinary General Assembly meetings and in accordance with     the agreement signed with each Client. 8) Any other activity approved by the Board as a as Custodial activity.
Article (4)	The license application for Custodial practice shall be submitted in writing to the Commission and shall include or have attached thereto the following data and documents as they pertain to the applicant The name, address and locations of branches, if any. The Memorandum and Articles of Association. The number and date of registration with the Controller of Companies. Names and addresses of senior executive management and a resume of their professional history in the field of securities. The names of shareholders who own (5%) or more of the applicant’s shares, or the annual report thereof, in the case of a non-Jordanian bank. The financial statements as of a date not exceeding three months prior to the date of submitting the application. The list of services to be offered. The form of the Custodian’s agreement with the Client. The general method for computing fees charged to the Clients. The proposed business procedures in writing. The relevant experience and capabilities for practicing Custodial activities, including available computer and electronic communications systems equipments, safes, another requirements for effective practice. The forms to be used for Client periodic account statements, electronic messages, and proof of title.
Article (5)	The following shall be requisite conditions for licensing any Custodian: The applicant shall be a bank or public shareholding company with a minimum paid-up capital of five million Jordanian Dinars. The Custodian’s management shall have the requisite experience and competence in accordance with the provisions of these Instructions and any instructions or decisions issued by the Board. The net shareholders equity shall not be less than (75%) of the paid-up capital. Submission of a letter of commitment or a bank guarantee to the order of the Commission in accordance with the decision of the Board. Payment of he license fees and the annual license renewal fees in accordance with the issued Regulations and Instructions. Compliance with the provisions of the Securities Law and the Regulations, Instructions and decisions issued pursuant thereto. Any other requirements decided by the Board.
Article (6)	The Custodian shall undertake the following: Separate the activities related to the Custodial practice from other activities. Designate at least one employee to perform the custodial activities, provided the employee is registered to engage in such. Provide the options and measures necessary for safe keeping the securities and for their protection against theft, fire and any other risks. Take administrative and auditing measures to prevent manipulation of the records and documents. Notify the Commission promptly of any financial trouble or threat thereof
Article (7)	The Custodian shall open a general account with the Center and sub-accounts therein whereby each account indicates separately the securities of each Clients. The Center shall not transfer title of securities at the Center which are in the Custodian’s general account or in the sub-accounts of the Custodian’s Client’s except pursuant to a written request from the Custodian. The Custodian shall not dispose of the securities in his custody except in accordance with the provisions of the Law and the Regulations and Instructions issued pursuant thereto, and the provisions of the custody agreement concluded with the Client.
Article (8)	All companies that practiced depositary activities qua custodian in accordance with the Instructions for Licensing Activities of Financial Services Companies and Registered Financial Professionals No. (1) for the year 1999, shall apply to the Commission to be licensed and shall rectify their position within a maximum period of one month as of the effective date of these Instructions.
Article (9)	Articles (3.a.5), (4.e), (5.c.5), (5.f.5), (6), (38), (39), (40), (41), (42), (43), (44) and (45) of Instructions for Licensing Activities of Financial Services Companies and Registered Financial Professionals No. (1) for the year 1999 as pertaining to the depositary, shall be repealed.
Article (10)	These Instructions shall be published in the Official Gazette, publicized in media, and among those concerned.