Section 53 Investments and Securities Act 2025

Section 53 of the Investments and Securities Act 2025 is about Modification of insolvency laws. It is under Part V (Registration and Regulation of Securities Exchanges, Financial Market Infrastructures and other Self Regulatory Organisations) of the Act. It provides as follows:

(1) The insolvency law shall have no effect in relation to —
(a) transfer orders effected through a system and action taken under the rules of a system with respect to such orders; and
(b) collateral security.

(2) The provisions of this section shall apply to insolvency proceedings in respect of a —
(a) participant in a system, or
(b) system operator of a system,
but not in relation to any other insolvency proceedings, notwithstanding that rights or liabilities arising from transfer orders or collateral security fail to be dealt with in the proceedings.