First Previous (PART III. Payments.) Next (PART V. Import and Export.)

30 1954

EXCHANGE CONTROL ACT, 1954

PART IV.

Securities.

Issue of securities.

8. —Except with the permission of the Minister, a person shall not issue any security to a person who is resident outside the scheduled territories or who is a nominee of a person so resident.

Transfer of securities, annuities and policies of assurance.

9. —(1) Except with the permission of the Minister, a person shall not transfer—

(a) any security, annuity or policy of assurance, or any right or interest in a security, annuity or policy of assurance, to a person who is resident outside the scheduled territories or who is a nominee of a person so resident, or

(b) any reserved security or coupon, or any right or interest in a reserved security or coupon, to any person.

(2) Except with the permission of the Minister, a person shall not accept a transfer of—

(a) any security, annuity or policy of assurance, or any right or interest in a security, annuity or policy of assurance, from a person who is resident outside the scheduled territories or who is a nominee of a person so resident, or

(b) any reserved security or coupon, or any right or interest in a reserved security or coupon, from any person.

Issue of bearer certificates and coupons.

10. —Except with the permission of the Minister, a person shall not issue any bearer certificate or coupon or so alter any document that it becomes a bearer certificate or coupon.

Substitution of securities and certificates outside the scheduled territories.

11. —Except with the permission of the Minister, a person shall not do any act with intent to secure—

(a) that a security which is—

(i) registered in the scheduled territories, or

(ii) transferable by means of a bearer certificate in the scheduled territories,

becomes or is replaced by a security registered outside the scheduled territories or a security transferable by means of a bearer certificate outside the scheduled territories, or

(b) that a certificate of title to any other security is issued outside the scheduled territories in substitution for, or in addition to, a certificate of title thereto which is in, or is or has been lost or destroyed in, the scheduled territories.

Payment of capital moneys outside the scheduled territories.

12. —Except with the permission of the Minister, a person shall not do any act with intent to secure that—

(a) capital moneys payable on a security registered in the scheduled territories are paid outside the scheduled territories, or

(b) where the certificate of title to a security is in the scheduled territories, capital moneys payable on the security are paid outside the scheduled territories without production of the certificate to the person making the payment.

Duties of persons keeping registers.

13. —Except with the permission of the Minister, a person concerned with the keeping of any register shall not—

(a) enter in the register the name of any person unless there is produced to him such evidence as may be prescribed that the entry does not form part of a transaction involving a contravention of any of the provisions of this Act, or

(b) enter in the register any address outside the scheduled territories except for the purpose of registering a transaction for which the permission of the Minister has been granted, or

(c) do any act in relation to the register which recognises or gives effect to any act appearing to have been done in contravention of any of the provisions of this Act, whether done by a person resident in the State or not.

Deposit of securities.

14. —(1) Except with the permission of the Minister, a person, by whom or to whose order (either directly or indirectly) a certificate of title to a reserved security is held, shall cause the certificate to be kept in the custody of an authorised depositary.

(2) Except with the permission of the Minister—

(a) an authorised depositary shall not release or destroy any certificate of title to a reserved security or any coupon,

(b) an authorised depositary shall not do any act recognising or giving effect to the substitution (otherwise than by operation of law) of one person for another as the person from whom he receives an instruction in relation to a certificate of title to a reserved security.

(3) Except with the permission of the Minister, capital moneys, interest or dividends shall not be paid in the State on any reserved security except to, or to the order of, the authorised depositary with whom the certificate of title to the security is deposited.

(4) Except with the permission of the Minister, a person shall not detach any coupon from a certificate of title to securities with coupons otherwise than in the normal course for collection.

(5) A person depositing a certificate of title to a reserved security with an authorised depositary shall furnish such information as to ownership as the authorised depositary may require.

(6) For the purposes of this section—

(a) a certificate of title shall be deemed not to be in the custody of an authorised depositary if he has no notice of the nature of the certificate or if it is in a locked or sealed receptacle from which he is not entitled to have it removed,

(b) a certificate of title shall be deemed to be in the custody of an authorised depositary if it is in the custody of another person who holds it by order and on behalf of an authorised depositary.