NEW CAPITAL ISSUES
CONTROL RELAXED IN BRITAIN Shortly before the elections the British Government gave up a substantial part of its control over the raising of new capital. The new Government has not so far altered these relaxations. The Chancellor issued new directions to the Capital Issues Committee giving greater freedom to borrowers. He asked flie banks to observe the same modified principles in granting loans and advances. Amounts up to £50,000 may now be borrowed within any one year (instead of £10,000) without Treasury sanction. Apart from the new instructions, which are issued as a White Paper and are of intense interest as an outline of the Government's economic policy, there are some technical changes which will affect the financial and banking system, says the Manchester Guardian. While the Treasury retains its control over all new capital issues above £00,000 in any year, it will no longer be concerned with the method of issue. Once an issue has been sanctioned the ordinary market machinery will be allowed to function again. It will no longer be necessary to place new securities privately with approved holders or to restrict the offer to existing shareholders. The Stock Exchange alone will decide whether permission to deal is to be granted, and the so-called "grey market agreement is abandoned.
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NEW CAPITAL ISSUES, Auckland Star, Volume LXXVI, Issue 187, 9 August 1945
NEW CAPITAL ISSUES Auckland Star, Volume LXXVI, Issue 187, 9 August 1945
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