Shares can be deposited if the shareholder can book the shares into his securities account at his bank. What many shareholders do not realise is that this is also possible for shares in a company that is not listed on the stock exchange. In Switzerland, for example, this is regulated by the Intermediated Securities Act (BEG). This means that certificates are booked into an electronic booking system of the Swiss National Bank under the operational processing of SIX SIS Ltd. It is important to note that these are legally securities, i.e. the individual shares with the same ISIN are interchangeable in order to simplify trading. The protection of the buyer of a share should also be emphasised. The so-called good faith protection protects the buyer of a share and secures his ownership rights. This means that the entire share history no longer needs to be checked at the time of purchase.
What are shares legally eligible for custody?
All FAQs Published at: 2024-02-05