Section 250 Investments and Securities Act

Section 250 of the Investments and Securities Act 2025 is about Obligation of a warehouse operator to deliver. It is under Part XV (Commodities Exchange and Warehouse Receipts) of the Act. It provides as follows:

(1) Delivery of a commodity which is the subject of a warehouse receipt shall be done in accordance with the rules and regulations made by the Commission under this Act.

(2) Except as provided under this Act or any rules and regulations made by the Commission, an issuer of a warehouse receipt shall deliver stored commodities upon demand by the holder of the warehouse receipt, if the holder —

(a) makes full payments for the warehouse operator’s charges for storage and other services relating to the commodities either through the clearing house if the stored commodities are traded on the exchange or directly through a medium as may be approved by the Commission if the commodities are not traded on the exchange, or does not make full payment and a lien is placed on the commodities, after deducting the exact quantity of the commodities at open market value as at that date, plus ancillary cost;

(b) signs relevant documents acknowledging the delivery of the commodities; and
(c) satisfies the warehouse operator of the identity of the person taking possession of commodities.

(3) Except as may be permitted by rules and regulations made by the Commission, an issuer of a warehouse receipt shall not —
(a) issue warehouse receipts for commodities in respect of which the issuer, its directors or staff have interest; or
(b) trade in commodities which it is registered to store.

(4) Where an issuer of a warehouse receipt is permitted by regulation to trade in its own commodities, and in fulfilling any additional condition for grant of the registration, it shall ensure that —
(a) there is a clear separation of the commodities owned by it from other commodities it is authorised to store;
(b) there are clear and transparent records available to show the demarcation of the commodities; and
(c) it issues receipt in respect of its commodities indicating that the commodities belong to it.