The Hong Kong Exchanges and Clearing Limited (HKEX) has issued a notice concerning a key component of the paperless securities market framework. As part of the dematerialization initiative, clearing participants and custodian participants (collectively referred to as "Participants") are now eligible to apply to the Inland Revenue Department (IRD) to become a Recognized Person (AP).

Following the implementation of the paperless securities market regime, Participants must obtain this AP status if they intend to deposit or withdraw eligible securities in dematerialized form or utilize the optional stamp duty payment service provided by the Central Clearing and Settlement System (CCASS).

The exchange has confirmed that the IRD has commenced the AP application process. Invitation letters have been dispatched via email to the designated contacts of existing Participants. Participants are advised to respond to the IRD within one month of receiving the invitation, indicating their intention to submit an application for AP status.