When a transfer of securities by a customer, other than on a centralized securities exchange market or an over-the-counter market, is carried out by book-entry transfer, the customer shall submit the transfer information and relevant documentation to the participant along with its request to handle the transfer, in accordance with the provisions of the Criteria Governing Handling of Stock Affairs by Public Stock Companies. The participant shall notify the CSDE by keying into the computer information regarding the securities that should be transferred and delivered from the customer to the transferee, and shall make the necessary entries in the customer’s account books.
When the application for transfer of securities under the preceding paragraph is one for transfer of bonds, beneficial securities, or asset-backed securities and not of a private placement nature, the application shall be reviewed and confirmed by the participant; with respect to applications for transfer of other securities, the participant shall submit the transfer information and relevant documentation to the CSDE, and the CSDE shall forward the information and documentation to the issuer for review and confirmation.
Once the securities to be transferred by application have been reviewed and verified as correct by the participant or issuer, the CSDE shall transfer such securities from the "sub-account pending settlement" on the transferor's participant account book to the "sub-account of the customers" on the transferee's participant account book.
The provisions of paragraph 1, the latter part of paragraph 2, and the preceding paragraph shall apply mutatis mutandis to transfers of securities by participants other than on a centralized securities exchange market or an over-the-counter market, with the exception of transfers of bonds, beneficial securities, and asset-backed securities that moreover are not of private placement nature, which transfers shall be reviewed and confirmed by the CSDE.