Section 10: Transfer by depository

10. Transfer by depository (1) Subject to this Act, a transfer of deposited securities between depositors shall be effected, notwithstanding the Companies Act or any other enactment or any instrument or a company’s memorandum or articles of association, by the CDS making an appropriate entry in its Depository Register and shall take effect on the settlement date specified in the rules of CDS. (2) A transfer of securities by the CDS by way of direct entry to a depositor under this Act shall be valid notwithstanding that the transfer is not accompanied by a proper instrument of transfer or that otherwise the transfer is not made in writing. (3) An entry under this Act in relation to the transfer of securities may be made in respect of the same class of securities or interests as part of a fungible bulk, and may refer merely to a quantity or par value of a particular security, without reference to a certificate or bond number or the like and, in appropriate cases, may be on a net basis taking into account other transfers or pledges of the same security. [S. 10 amended by s. 362 (4) (a) of Act 15 of 2001 w.e.f. 1 December 2001.]