Any person or entity may become a KDD member-issuer. KDD enables issuers of securities, who also become its members (i.e. issuers issuing their securities with KDD) to enter their securities in the central registry.
In this way, holders are able to dispose with securities just as they would with electronic funds, whereby they are able to use them for a wide range of purposes in legal transactions (lien or charge, pledge to several creditors, usufruct, right of redemption, pre-emptive right, and prohibition of disposal).
On the other hand, members-issuers are enabled simple exercise of corporate actions, as mergers, divisions, replacements and other restructuring of existing securities may be undertaken without holders of existing securities having to submit these to the respective member-issuer.
Other benefits of issuing securities with KDD
Contrary to many similar institutions on other capital markets, KDD provides its members to combine various types of securities ownership with same types of securities: this includes direct (securities are registered to the final holder) as well as fiduciary (securities are registered to the professional custodian) ownership.
KDD for its member-issuers implements payments or other fulfillment of obligations arising from Securities.
KDD provides anyone wanting to sell or purchase securities 100% security from risk of default by the counterparty (OTC-DvP mechanism) at the best market prices.
KDD provides all holders of securities that are entered into the central population register or business register with automatic data updates with changes made in said registers, so that no special notification is necessary either between member-issuer : holders or KDD : member-issuer or KDD : holders.
KDD also allows eventual withdrawal of a shareholder from a joint-stock company that is processed free of charge in a way that benefits all other shareholders (the member-issuer has a pre-emptive right to acquire disclaimed securities).