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Transfer of Bearer Shares

If an owner of bearer shares wants to transfer ownership, he only needs to deliver physically the bearer share certificate to another person. Under the IBC (Amendment) Act 2003 and the custody arrangements, when a client has bearer shares and wants to sell these shares, the Authorised Custodian may deliver the bearer share certificates only to another Authorised/Recognised Custodian who has agreed to hold the certificates.

So, in any case the Registered Agent of the company will have to be informed each time when the possession of the bearer share certificate is transferred to another Authorised Custodian. In case of Recognised Custodians, the share certificates should be sent back to the Registered Agent or to the company who would then forward the shares to the new Recognised Custodian.