The Book-Entry Transfer System for Shares, etc. refers to the computerized management (issuance, transfer and cancellation) of shareholders' ownership rights (which had formerly been administered on the assumption of the physical existence of share certificates, etc.) through accounts established by JASDEC and securities companies etc. in accordance with the Act on Book-Entry Transfer of Company Bonds, Shares, etc. which abolished share certificates, etc. for the shares, etc. of publicly listed companies.
Having obtained the consent of issuers to do so, JASDEC conducts transactions through this Book-Entry Transfer System for Shares, etc. in shares listed publicly on securities exchanges, warrants for new shares, corporate bonds with warrants for new shares, investment units, preferred shares, beneficial interests in investment trusts and other items pertaining to these instruments.
Four Benefits of Book-Entry Transfer System for Shares, etc.
Eliminates the risk of share certificates being lost or stolen whilst under management and the risk of receiving forged share certificates
Removes the need for share certificates, etc. to be presented in merger of shares, etc.
Allows securities transactions to be conducted rapidly and efficiently
Reduces the cost of issuing and managing share certificates for issuing companies
Structure of the Book-Entry Transfer System for Shares, etc.
The issuance, transfer, and cancellation of rights related to securities handled under the Book-Entry Transfer System for Shares, etc. are determined by the records of relevant changes of rights in the book-entry transfer account registry maintained by JASDEC and securities companies, etc. Please refer to the following page for the structure of the Book-Entry Transfer System for Shares, etc.