A nominal holder is typically a depository or professional participant whose account holds securities for many clients. They are listed in the register of owners but are not the beneficial owner and cannot dispose of the securities at their discretion.
This arrangement exists for efficiency: without it, each transaction would require updating the register for each owner. Nominal holding allows operations to be conducted quickly within the accounting system, with a single holder facing the issuer.
The rights of beneficial owners are preserved. During corporate actions, the nominal holder discloses the list of actual owners so that dividends and voting rights reach those to whom they belong. Funds and payments are transferred through the nominal holder but belong to clients and are separate from their personal property.
For investors, it is important to understand the accounting chain: where the account is opened, who acts as the nominal holder, and how to obtain confirmation of ownership rights. These matters should be clarified with your broker before conducting operations.