Act on book-entry transfer of corporate bonds and shares

The transition to the dematerialization of stock certificates in. Article 1 the purpose of this act is to facilitate the distribution of rights that are required to be indicated on corporate bonds, shares, and other securities by. Bookentry securities are investments such as stocks and bonds whose ownership is recorded electronically. This system, which will be available to both domestic and foreign issuers for all new corporate bond issues, is another step towards conversion of the japanese bond market from the old recorded bond system to a truly paperless bond transfer system. As of january 10 2006, a new bookentry transfer system for corporate bonds will begin operation. Where an issuer of bookentry transfer shares in an issue referred to in paragraph 1 disposes of its shares in order to allow the bookentry transfer institution to acquire the bookentry transfer shares pursuant to the provisions of the same paragraph, the provisions of part ii chapter ii section 8 of the. Bookentry transfer of specified corporate bonds articles 118 and 119 section 5. Act on bookentry transfer of corporate bonds and shares, etc. Article 37 the case to be specified by ordinance of the competent ministry as prescribed in article 196, paragraph 1 of the act is a case where bookentry transfer corporate bonds with share options in the case of a company split, limited to those delivered to the holders of share options attached to the corporate bonds with share options of the stock company executing the company split. Procedures regarding bond gensaki transactions, etc. Act on bookentry transfer of corporate bonds and shares act no. Bookentry securities eliminate the need to issue paper certificates of ownership. Opening of accounts of an account management institution.

Structure of bookentry transfer system for stocks, etc. Jasdec is the bookentry transfer institution in accordance with the act on transfer of bonds, shares, etc. Name of law act concerning the bookentry transfer of. Transfer of corporate bonds, stocks and other securitiesnote2 hereinafter referred to as the new law was. Bookentry transfer of other corporate bonds and other securities section 1. In view of the coming introduction of the new bookentry transfer system by jasdec based on the revisions in the law, the japan securities dealers association hereinafter. Bookentry transfer of municipal bonds articles 1 and 114 section 2. Article 1 the purpose of this act is to facilitate the distribution of the rights that are required to be indicated on corporate bonds, shares, and other securities by providing for bookentry transfer transefer institutions and account management institutions to make book entries for those rights. Bookentry transfer jgbs defined in the act on book entry of corporate bonds and shares. Under this system, listed securities are managed in the accounts opened at jasdec. Bookentry transfer system for corporate bonds and presettlement matching systems together are referred to as the bookentry transfer system. Related laws and regulations act on bookentry transfer of.