Financial Markets Act, 2012 (Act No. 19 of 2012)

Chapter IV : Custody and Administration of Securities

Purchase

(1)	An entry effected in terms of section 38 or 39 is valid and effective against third parties despite any fraud or illegality that may have resulted in the entry being effected, unless a transferee to the transaction resulting in the entry was a party to or had knowledge of the fraud or illegality.

(2)	This section does not modify the order of priorities determined by section 40.

(3)	Section 53(4), (5) and (6) of the Companies Act applies to an entry referred to in subsection (1) with the changes required by the context.