Section 261 Investments and Securities Act

Section 261 of the Investments and Securities Act 2025 is about Liability for wrongful description of commodities. It is under Part XV (Commodities Exchange and Warehouse Receipts) of the Act. It provides as follows:

Except as otherwise provided in this Act or rules and regulation made under it, an issuer of a warehouse receipt shall be liable to the holder of a warehouse receipt for the commodities named in the receipt not being in existence, or by the commodities delivered not corresponding with the description in the warehouse receipt subject only to changes that may occur in the commodities, over time when stored in accordance with the conditions specified in this Act or by the rules and regulations made under it.