On August 20, JBA compiled and released “Points to Remember Regarding Collateral Transactions for the New Transfer System (responses to be taken in the case of issuing companies making a transition)” in conjunction with the dematerialization of stock certificates that began on January 5, 2009.
If a company issuing stock pledged as collateral makes a transition from being a listed company to an unlisted company, or vice versa, there are certain key matters to note regarding how to process the stock collateral. JBA therefore compiled these key matters in the abovementioned materials.
When the stocks of every listed company were simultaneously dematerialized, it was possible to make a unified response since the transition to dematerialized stock certificates was made without exception. However, under the New Transfer System, when an issuing company makes a transition from being a listed company to an unlisted company, or vice versa, banks must respond to each concerned company. Furthermore, banks have to respond individually to collateral holders who hold the stock of the concerned issuing companies. In the Points to Remember, JBA raised several problems that could arise and compiled them as points to bear in mind in order to assist in the smooth handling of stock collateral transactions in such cases.