8Effect of certain stamps on prescribed instruments

8 Effect of certain stamps on prescribed instruments

8 Effect of certain stamps on prescribed instruments

(1) Where a duly completed instrument of transfer bears a stamp that purports to be that of the transferor’s broker, a prescribed stock exchange or a prescribed stock exchange under a corresponding law and to have been affixed in the State, the broker (not being a broker’s agent) or stock exchange whose stamp that stamp purports to be and, if the stamp purports to be that of the transferor’s broker (whether or not he is a broker’s agent), any associate of that broker:

(a) shall be deemed to have warranted the accuracy of the statements in his or its certificate set out in the instrument,

(b) shall be deemed to have warranted that the transferor is the registered holder of or is entitled to be registered as the holder of the marketable securities to which the instrument relates or is entitled to the rights to marketable securities to which the instrument relates and is legally entitled or authorized to sell or dispose of those marketable securities or rights, and

(c) shall be liable to indemnify:

(i) the company, prescribed corporation, foreign company or prescribed corporation under the corresponding law that has issued or proposes to issue the marketable securities or rights to marketable securities to which the instrument relates,

(ii) the transferee, and

(iii) the transferee’s broker,

against any loss or damage arising from a forged or unauthorized signature of the transferor appearing in the instrument.

(2) Without limiting the operation of subsection (1), where a duly completed instrument of transfer, which bears a stamp that purports to be that of the transferor’s broker and to have been affixed in the State, relates to marketable securities or rights to marketable securities to which or to any of which a duly completed instrument of transfer, which bears a stamp that purports to be that of a prescribed stock exchange or a prescribed stock exchange under a corresponding law relates, the broker (not being a broker’s agent) whose stamp that first-mentioned stamp purports to be and (whether or not that broker is a broker’s agent) any associate of that broker shall be liable to indemnify that stock exchange against any loss or damage arising from a forged or unauthorized signature of the transferor appearing in the instrument.

(3) A reference in subsection (1) or (2):