(1) A participating issuer shall not change a unit of a participating security from certificated form to uncertificated form except in the circumstances specified in paragraph (2).

(2) The circumstances referred to in paragraph (1) are -

(a) where the unit of the participating-security is held by a system-member, that the participating issuer has received -

(i) a request in writing in the form required by the rules made and practices instituted by an operator to register the system-member as holding the unit in uncertificated form; and

(ii) subject to paragraph (4), the certificate relating to the certificated unit which is to be converted into uncertificated form;

(b) where the unit of the participating security is to be registered on a register of securities in the name of a system-member following a transfer of the unit to that person from a person other than a stock exchange nominee, that the participating issuer -