Section 4 in Public Debt (Compensation Bonds) Rules, 1954
4. [ Transfer of bonds and stock certificates.- [Substituted by S.R.O. 1196, dated 19.5.1956]
The bonds and stock certificates shall be transferable only in the manner specified below:(1)[A bond in the Form referred to in rule 3,](a)it shall be transferable by endorsement and delivery like a promissory note payable to order:(b)no endorsement of a bond shall be valid unless made by the signature of the holder or his duly constituted attorney or representative inscribed on the back of the bond itself;(c)no writing on a bond is valid for the purpose of negotiation if such writing purports to transfer only a part of the amount denominated by the bond and(d)the treasury or sub-treasury, or any office of the bank or the Public Debt Office may decline to accept a bond, endorsed in blank for any purpose, unless the endorsement in blank is converted into that in full before presentation.(2)[A stock certificate in the Form referred to in rule 3,] [Substituted by G.S.R. 757, dated 5.6.1962](a)the stock for which the stock certificate is issued shall be transferable either wholly or in part by execution of an instrument of transfer in Form H:(b)the transferor shall be deemed to the holder of the stock to which the transfer relates until the name of the transferee is registered as a holder of the stock by the Public Debt Office.][4-A. Provision for holding stock by trustees and office holders.- [Inserted by S.R.O. 1196, dated 19.5.1956](1)Stock for which the stock certificate is issued may be held by the holder of an office other than a public office:-(i)in his personal name described in the books of the Public Debt Office and in the stock certificate as a trustee, whether of a specified trust or without any such qualification, or(ii)by the name of his office.(2)The stock certificate referred to in sub-rule (1) may be held by the holder of the office, either alone or jointly with a person or persons holding an office other than a public office.(3)When stock is held by a person in the name of his office, any document relating to the stock concerned may be executed by the person for the time being holding the office by the name in which the stock is held as if the personal name were so stated.(4)Where any transfer deed, power of attorney or other document purporting to be executed by a stock holder described in the books of the Public Debt Office as a trustee or a holder of an office is produced to the Public Debt Office, the Public Debt Office shall not be concerned to inquire whether the stock holder is entitled under the terms of any trust or document or rules to give any such power or to execute such deed or other document, and may act on the transfer deed, power of attorney or document in the same manner as though the executant is a stock holder and whether the stock holder is or is not described in the transfer deed, power of attorney or document as a trustee or as a holder of an office and whether he does or does not purport to execute the transfer deed, power of attorney or document in his capacity as a trustee or as a holder of the office.(5)Nothing in these rules shall, as between any trustees or office holders, or as between any trustees or office holders and the beneficiaries under a trust or any document or rules, be deemed to authorise the trustees or office holders to act otherwise than in accordance with the rules of law applying to trust, the terms of the instrument constituting the trust, or the rules governing the association, of which the stock holder is the holder of an office; and neither the Government nor any person holding or acquiring any interest in any stock shall, by reason only of any entry in any register maintained by or on behalf of the Government in relation to any stock or any stock holder, or of anything in any document relating to stock, be affected with notice of any trust or of the fiduciary character of any stock holder or of any fiduciary obligation attaching to the holding of any stock.(6)The Public Debt Office may, before making any entry in their books describing a person as a trustee of a specified trust, or issuing a stock certificate in his name described as trustee with the specification of the trust, or acting on any document purporting to be executed in pursuance of this rule by a person as being the holder of any office, require the production of the necessary evidence.]
