Section 246 Investments and Securities Act

Section 246 of the Investments and Securities Act 2025 is about Warehouse receipt as evidence of proprietary rights. It is under Part XV (Commodities Exchange and Warehouse Receipts) of the Act. It provides as follows:

(1) A warehouse receipt drawn and issued shall be first proof of the holder having proprietary rights in the commodities.

(2) A person acquires proprietary rights in the commodities, in relation to a warehouse receipt, if he is entitled to the ownership of the commodities —

(a) in return for a binding commitment to extend credit or for extension of an immediately available credit, whether or not drawn;
(b) as security for or in total or partial satisfaction of a pre-existing claim;
(c) by accepting delivery under a pre-existing contract for purchase; or
(d) in return for any consideration sufficient to support a pre-existing contract.