Section 270 Investments and Securities Act

Section 270 of the Investments and Securities Act 2025 is about Appointment of custodians. It is under Part XVI (Issuance of Securities) of the Act. It provides as follows:

(1) Subject to the consent of its approving authority, a body to which this Part applies shall appoint any financial institution registered with the Commission as custodian, for the purpose of warehousing proceeds of the bond for the duration of the execution of projects or the purpose of issue as stated in the prospectus of such bond.

(2) For the purpose of giving effect to this section, the custodian appointed under subsection (1) shall have the power to —
(a) receive and hold money accruing from the issue of the bonds;

(b) discharge the duties of a custodian as stipulated in this Act and any rules and regulations made under it;
(c) make payments in relation to the purpose of issue of the bond in accordance with such conditions as may be specified by the Commission; and

(d) refuse the execution of any payment that may be in contravention of the content of the trust deed of a bond.