OVER-RIDDEN.

Auckland Star, Volume LXXI, Issue 145, 20 June 1940, Page 4

OVER-RIDDEN.

EARLIER EXEMPTION. QUOTING OVERSEAS SHARES. "CANNOT SEE NECESSITY." "The new regulations, the Finance .kmergenty Regulations No. 2, over-nde the exemptions granted Dominion Stock Exchanges from the previous regulations," ijaid the chairman of the Auckland Stock Exchange, Mr. J. W. Fruter, this morimitf Hi* opinion was aeked on the bun reimpotfed on the quotation of securities other than those domiciled in New Zealand on the Dominion exchanges. On April 11 last Dominion exchanges were informed that they could not quote overseas securities, and the ban was not lilted for some three weeks. Exemptions were finally granted ae the result of representations made by the executive of the Mock Exchange Association of New Zealand to tlie Governor of the Reserve Ba*k ot Sow Zealand, Mr. Leslie Lefeaux. Mr. Frater said that representations were being made in regard to the latest imposition, with a view to having permission granted to quote the securities concerned. "At the eame time we cannot nee the necessity for dealing in these securities at the present time," Mr. Frater commented. If the Government deemed it expedient as a- war measure to take over investors' holdings in overseas stocks, it did not matter which New Zealander held them. The point was to ensure that eecuritiee wore held in the Dominion, and existing regulations were sufficient to ensure that. There appeared to be no point in again preventing dealings. As mentioned in the financial columns of the "Star" to-day, word was received prohibiting the quotation of overseas securities juet before the final call of the Stock Exchange yesterday.

WELLINGTON COMMENT. STOCK EXCHANGE CHAIRMAN. (By Telegraph.—Press Association.) WELLINGTON, this day. When tne suspension of dealings in Australian shares and other overseas securities was referred to Mr. Andrew Hamilton, president of the Stock Exchange Association of New Zealand, last night, he eaid it was quite clear the Finance Emergency Regulations No. 2, gazetted on Tuesday, making unlawful all transfers of and other dealings in foreign securities, closed all dealings in securities on registers outside of New Zealand. Mr. Hamilton said the. previous Finance Emergency Regulations issued in April prevented dealings in the "black market." Exemptions to. those regulations were granted when the New Zealand Stock Exchangee were able to provide a simple means of the Government achieving its object without completely prohibiting internal trading in popular Australian and other overseas securities. The new regulations removed those exemptions and gave powev to the Government to take over overseas securities held by persona in New Zealand. In these circumstances and until further clarification of the position wae obtained, the Stock Exchangee of New Zealand could not undertake the quotation of, or dealings' in, securities on registers outoide of New Zealand.