You may deposit certain foreign-owned shares of communications, maritime, and specialized ownership issues, as specified in the Corporate Eligible Securities Book, into a special account at DTC identified as segregation account #100 (seg-100). You can move securities back and forth between your general free account and your seg-100 account, as appropriate, to reflect changes in the amount of certain foreign-owned and specialized ownership issues on deposit at DTC.
IMPORTANT: These shares must be deposited and maintained in the seg-100 account until acquired by a U.S. citizen.
Use Segregation/Release in PBS to segregate and release foreign-owned or specialized ownership issues. When you enter F in the Serial Number field for these securities on your Participant Daily Activity Statement, these securities will appear with the serial number "100." You can process these transactions exactly as you would any other transaction for segregated securities.
DTC will report to the transfer agents (TAs) for communications, maritime and specialized ownership issues the holdings in each participant's seg-100 accounts for each security, and the TAs will note their records accordingly. In the rare instance in which total alien holdings in an issue may exceed statutory limitations, and the increase in foreign-owned shares registered in the name of Cede &Co. caused the statutory limitation to be exceeded, a TA will advise DTC of the amount by which those foreign-owned shares must be reduced.
According to the seg-100 procedures, you are required to immediately withdraw from your general free account any foreign-owned shares that cannot be credited to your seg-100 account because of foreign ownership limitations. DTC will cooperate with the issuer and its TA to facilitate the withdrawal and will disclose to the issuer your name and the number of shares to be withdrawn. You should be aware that issuers may place restrictions on such shares.
At the request of the issuer or its TA, DTC provides periodic reports that list individual participant names and their positions that are segregated in the seg-100 account.