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Contents

Part II · Markets and Market Institutions

51. Transfer of securities in settlement

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

A central depository shall give effect to an instruction from a licensed clearing house to effect a transfer of securities into or out of a securities account of an account holder provided such instruction shall be for the purposes of settlement of a market contract or otherwise dealing with a market contract in accordance with the rules of the licensed clearing house.

(2)

An instruction under subsection (1) shall be given by a licensed clearing house only in relation to a securities account which relates to an account holder who is a party to a market contract or an account holder who had instructed a clearing member to effect a trade which results in a market contract to which a clearing member has become a party.

(3)

Where any transfer of securities pursuant to a market contract is effected by the central depository to or from a securities account of an account holder pursuant to subsection (1), no title in such securities shall pass to an account holder except as provided under the rules of a licensed clearing house.

(4)

Where a transfer of securities has been effected into or out of a securities account of an account holder pursuant to subsection (1), a central depository shall not be subject to any action or claim by or be liable to any damages to that account holder.

Part III

Issue of Securities

Part IV

Trade In Unlisted Securities

Part V

Market Misconduct

Part VI

Finance

Part VII

General