Section 107

transfers of securities, including dematerialised securities, may be validly made by appropriate entries in the accounts maintained by a holder of a capital markets services licence or in the records of the issuer or his registrar and such entries shall be evidence of the transfer;

transfers of dematerialised shares shall only be evidence so far as the issuer is concerned, when a transfer is recorded in the books of the issuer of the names of the parties to the transfer and the number of shares transferred;

1318

fcJ the official records and book entries of a central securities depository shall constitute the best evidence of such transactions between the central securities depository and its participants and members, without prejudice to the right of members' clients to prove their rights, title and entitlement with respect to the book-entry security holdings of the members held on behalf of the clients; and

[d)

the issuer may be bound by paragraph {c) where the company secretary, is duly notified of the transaction in such manner as the Authority may provide.

The Authority may by regulations provide that securities held by a nominee as nominee owned securities may not be used in insolvency or otherwise in satisfaction of the debts of the nominee.

The Authority may provide regulations for the protection of investors which-

{a}

validate the transfer of securities by book-entries rather than the delivery of p},lysical certificates;

{b)

establish when a person acquires a security or an interest therein and when delivery of a security to a purchaser occurs;

{c)

establish which records constitute the best evidence of a person's interests in a security and the effect of any errors in electronic records of ownership;

[d)

establish the rights of investors who choose to hold their securities indirectly through a central securities depository, other intermediaries or both;

{e)

establish the duties of such intermediaries who hold securities on behalf of investors; and

{f)

establish first priority to any claims of the central securities depository against a participant arising from a failure by the member to meet his obligations under the regulations of the central securities depository.

Grant of recognition to self-regulating organisation.