|
Article 43
|
The payment or settlement of securities listed on a stock exchange or traded on over-the-counter markets shall be effected on a cash payment and actual delivery basis. The settlement period and the margin deposit to be paid in advance may be prescribed by an order of the Competent Authority.
Settlement of trades of securities held in the custody of a centralized securities depository enterprise may be effected through book-entry transfer. The regulations for the operations thereof shall be prescribed by the Competent Authority.
If securities held in the custody of a centralized securities depository enterprise are the subject of a pledge, the delivery of the pledge created may be effected through book-entry transfer, and Article 908 of the Civil Code shall not apply.
Securities held in fungible custody by a securities depository shall be co-owned by the owners in accordance with the types and quantities of securities deposited by them. Upon withdrawal, securities of the same type and in the same quantity may be used to return them.
To handle custody business, a centralized securities depository enterprise may enter the stock and corporate bonds held in its custody into the issuer's shareholders register or corporate bond counterfoils in its own name. When, before the stock or corporate bond issuer calls a shareholders meeting or corporate bondholders meeting, decides to distribute dividends or bonuses or other benefits, or pays principal or interest, the centralized securities depository enterprise notifies the issuer of the true name or title and domicile or residence of, and the amount held by, the owner of stock or corporate bonds held in its custody it shall be deemed to have entered that information into the issuer's shareholders register or corporate bond counterfoils or that the stock or corporate bonds have been delivered to the company, and the provisions of paragraph 1 of Article 165, Article 176, Article 260, and paragraph 3 of Article 263 of the Company Act shall not apply.
The provisions in the preceding two paragraphs shall apply mutatis mutandis to government bonds and other securities.
|