Transfer of Shares

CDS account holders can transfer the shares between the Client accounts in the following instances:

Change of broker - Transfer of an account from one broker to another broker
Change of beneficiary - Transfer from one account holder to another in instances of a gift, on the death of an account holder or any other off market transfer approved by the Securities and Exchange Commission of Sri Lanka.

The Participants of the transferor and transferee shall verify the instructions and signatures of the clients by certifying the CDS forms.

In the event of Withdrawal of Beneficial Interest of Government Securities CDS form 9(A) should be submitted insteadCDS form 9.

The CDS shall reject incomplete transfer forms giving reasons for rejection by using CDS Form 14 and hand over same to the Participant.

Documents Required:

  1. Change of broker:

    • CDS Form 6 duly authorized by the respective Member Firms and completed by the account holder.

  2. Transfer between two different account holders:

    • CDS Form 6 duly authorized by the respective Member Firms and completed by the account holder

    • Original document of approval granted by the SEC.

    • Confirmation of the stamp duty paid to the Inland Revenue.

  3. Transfers pertaining to deceased accounts

    • The relevant CDS Form 19 should be filled in and submitted to the CDS for confirmation of CDS balance.

    • Thereafter the CDS form 19 and supporting documents should be submitted to the relevant Company Secretary by the relevant heirs or Participant.

    • The Company Secretary will approve the Form 19 and return the same to the Participant.

    • The approved CDS Form 19 should be submitted to the CDS together with the stamp duty paid receipt, other supporting legal documents and the CDS form 6, duly signed by the Executor and Heirs.

  4. Transfers pertaining to Take-overs, Mergers and Repurchases:

    • Form of acceptance, letter of authorization to the CDS and application for additional shares (applicable only for repurchase of shares) should be forwarded to the CDS through the respective Participant. The account holder should duly complete all the relevant sections in the offer document. An authorized signatory of the Participant should sign in the relevant section of the offer document on behalf of the Participant.

    • The Participant must submit the CDS Authorization Form to CDS on or before the date stipulated in the offer document.

Note:
After transferring the relevant shares to the reserve account the CDS will forward all the offer documents to the Registrars to the offer.

  1. Collateral transfers

In order to transfer shares from an individual account to the collateral account, the CDS requires the under mentioned documents together with duly completed CDS transfer form.

  • Original document of the approval granted by SEC.

  • Confirmation of stamp duty paid to the Inland Revenue.

  1. Transfers due to change of global custodian

Both the existing bank & receiving bank should forward written requests to the CDS to change the Global Custodian with the relevant supporting documents

If the event the account has a share portfolio, approval form the Securities and Exchange Commission (SEC) is required.

The CDS shall change the tile of the account to reflect the name of the new custodian.

Documents Required

From the existing bank:

  • A letter instructing the CDS to transfer the account to the receiving (new) bank.

  • Customer instructions to transfer the account (swift message given by the Global custodian acceptable. It should indicate all the required information regarding the transfer.)

  • A request to suspend the existing account.

From the receiving (new) bank:

  • CDS Form 2 and CDS Form 2 (A)

  • A letter from the bank instructing the CDS to register the account with the bank.

  • Customer instructions to register the account with the new bank.

  • If the account is to be opened under a Power of Attorney a certified copy of the same is required.

Note:
Private Transfer approval from SEC is required if the registered holder's or the beneficial holders name changes as a result of the change in Global Custodian and only if there are securities in the account.