However, it could conceivably encourage some investors to transfer securities to another broker and then sell them within the one-year hiatus in an effort to skirt reporting their gain.

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Delaware granted securities issuers and their transfer agents extensions to try to re-establish contact with shareholders who hadn't been in touch about their accounts for three years.

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It can seek disgorgement of ill-gotten gains, federal court injunctions and cease-and desist orders against illegal securities conduct, and bars against working for broker-dealers, investment advisers, transfer agents, and municipal securities advisers.

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When a trade was between customers of different firms it had to be settled by a physical transfer of paper securities.

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In settling its case against Risher, the SEC imposed upon him a Bar from association with any transfer agent, broker, dealer, investment adviser, municipal securities dealer, municipal advisor, or nationally recognized statistical rating organization.

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Beginning on January 1, 2011, brokerage firms, mutual fund companies, banks and transfer agents will be required to track and report the cost of securities to both the IRS and the investor.

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If that happens, Mr. Goyal will need to get the approval of the Securities and Exchange Board of India, the country's capital markets regulator, in order to transfer his shares from Tail Winds.

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