Inward Listed Securities - JSE Limited by monkey6

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									SPECIAL GAZETTE

NUMBER:                   127

DATE         06 December 2004




                                Inward Listed Securities

   Members are referred to the South African Reserve Bank’s Exchange Control
   Circular No. D.441 entitled “Inward Listings by Foreign Entities on South African
   Exchanges”, attached hereto, and the subsequent interim budget speech by the
   Minister of Finance where further dispensations were allowed.

   Members are advised that on 29 November 2004, the JSE Executive
   Committee approved Directive BL, as attached, to cover the procedures to be
   followed by members with regard to Inward Listed Securities. This Directive BL
   is effective immediately.

   The key points are -
       brokers have to obtain a copy of the Exchange Control Application (ECA)
        from their institutional clients before purchasing Inward Listed Securities.
        All that has to be validated by the broker is that the ECA has not expired;
       brokers have to send a copy of the ECA to the Settlement Authority by
        12h00 on T+1, which if not received by that time, will require the broker to
        move the purchase to their misdeals accounts and deal out of the position
        within 5 business days;
       normal failed trade procedures will be applied by the Settlement Authority
        where brokers are unable to secure settlement as per the current Equities
        Rule 14 and Directive E;
       if trades go into reverse substitution due to lack of securities or cash,
        brokers have to secure settlement by 12h00 on T+4 by borrowing the
        securities, as per the current Equities Rule 14 and Directive E; and
       brokers are not permitted to trade or hold Inward Listed Securities for their
        own account, other than in respect of those held in their misdeals account.
   Should members have any queries in respect of the above, they can contact
   Brett Kotze on 011 520 7587 or at BrettK@jse.co.za.




   6 December 2004                           Des Davidson
                                             Director: Clearing & Settlement Division




                Distributed by the Secretarial Services Division +27 11 520-7260
BL        Transactions in Inward Listed Securities

     1.      For the purpose of this directive, “Inward Listed Securities” shall mean
             foreign shares issued by listed companies granted a listing on the JSE in
             terms of the Exchange Control Regulations pertinent to foreign entities
             listing on South African exchanges.

     2.      Transactions in Inward Listed Securities by a client who is a South African
             resident shall not be subject to any limitations in terms of Exchange
             Control Regulations if the client is a natural person, which specifically
             excludes trusts and partnerships.

     3.      A client, who is a South African resident and who is not a natural person,
             requires approval from the South African Reserve Bank prior to the
             purchase of any Inward Listed Securities.

     4.      A broking member (equities) may not trade in Inward Listed Securities for
             their proprietary account, other than as may be required in terms of BL 7.

     5.      Prior to executing an order to purchase Inward Listed Securities on behalf
             of a client that is a South African resident that is not a natural person, a
             broking member (equities) shall obtain a copy of a valid Exchange Control
             Application form from such client.

     6.      Once the relevant transaction has been executed, the broking member
             (equities) shall forward the Exchange Control Application form obtained
             from the client to the Settlement Authority by 12h00 on T+1.

     7.      In the event that the Settlement Authority does not receive a copy of the
             Exchange Control Application form from the broking member (equities) by
             12h00 on T+1, the Settlement Authority will instruct the member to transfer
             the purchase of any Inward Listed Securities from the client’s account to
             the member’s Misdeals account and the member will assume
             responsibility for settling the transaction on settlement day.

     8.      Any purchase transferred to a broking member (equities) Misdeals account
             in terms of BL 7 must be sold out by the member within five business
             days.

								
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