Holding and Transfer of Immobilized Securities

Abstract This chapter explores immobilized securities as an alternative to dematerialization. It defines immobilization as the creation of a single global instrument that represents an entire security issue, deposited with a custodian or common depository. The chapter examines the roles and functions of custodians and various intermediaries, highlighting the complexity of ownership chains and the lack of transparency. It also explains the transfer process of interests in immobilized securities, showing how transfers occur through book entries. Finally, the chapter addresses concerns regarding the legal framework of immobilized systems, particularly the absence of clear statute and case law in English law and outlines ongoing efforts to regulate intermediated securities.