Section 38
Bonus, rights issues, etc.
of Securities Industry (Central Depositories) Act 1991
(1)
Where the issuer or offeror, in relation to any prescribed security—
(a)
makes a bonus issue, or issues securities under a rights issue or the conversion of any debt securities;
Securities Industry (Central Depositories) 51
(b)
issues securities pursuant to an exercise of any right or option to acquire securities in the share capital of the issuer; or
(c)
makes an offer for the sale of securities, the issuer or the offeror shall notify the central depository of the names of all allottees or entitled persons together with such particulars as may be required by the central depository for the purpose of making appropriate entries in the securities accounts of the respective allottees or entitled persons, and shall deliver to the central depository the appropriate scrips (in such denominations as may be specified by the central depository) registered in the name of the central depository or its nominee company.
(2)
Unless he already has an existing securities account, a person shall open a securities account before acquiring any of the securities mentioned in subsection (1).
(3)
For the purposes of this section—
(a)
―entitled persons‖ means persons who have been allocated securities by an offeror in an offer for sale; and
(b)
―offeror‖, in relation to any security, means the owner of the security.