Shareholders (investors) are free to select whether or not to use this system.
If shareholders decide to use this system, they must have an account with a securities company and deposit their share certificates to the JASDEC through the securities company.
JASDEC then makes itself the registered holder of the deposited share certificates and keeps the certificates in custody collectively with other share certificates. Trades of the deposited certificates are settled by making transfers among the accounts of the participants (securities companies) opened at the JASDEC and the customer accounts at the securities companies.
Shareholders can withdraw the deposited share certificates at any time through their securities companies.
However, fractional shares may not be withdrawn.

With regard to the rights of shareholders such as receipt of dividends, subscription to new shares through shareholder allotment, and voting rights at the general shareholders meeting, etc., such rights may be directly exercised by the beneficial shareholders, as pertinent information will be delivered to such beneficial shareholders as per the beneficial shareholder roster that is created based on the notification from JASDEC.
If a shareholder registered in the general shareholder roster and a beneficial shareholder are acknowledged as being the same individual, their shareholdings will be combined upon name identification.

When shareholders choose to use the custody and book-entry transfer system for stocks and other securities, they are required to open an account with a securities company, and submit their beneficial shareholder cards together with the share certificates to such securities company. This procedure enables JASDEC to provide The Chuo Mitsui Trust and Banking Co., Ltd., the Company's transfer agent, a list of beneficial shareholders as of the fiscal closing or other important reference dates such as the reference date for allocation of new shares.

Among the documents to be submitted by the beneficial shareholders, forms such as the application for selection of separate withholding tax and the dividend payment instruction form must be submitted to The Chuo Mitsui Trust and Banking Co., Ltd. which is the Company's transfer agent, whereas forms to notify change of address, surname, or name must be submitted to the securities company where the beneficial shareholders opened their accounts. As such, shareholders are advised to submit notifications with careful attention.
Documents that need to be submitted through the securities companies include notifications on the change of address, change of surname/name, name correction, change of trade name, organizational change, and change of company representative among others.