OVERSEAS SHARES

Evening Post, Volume CXXX, Issue 27, 31 July 1940, Page 9

OVERSEAS SHARES

STOCK EXCHANGE VIEWS

Satisfaction that permission was to be granted to resume trading in Australian and certain other overseas shares was expressed by the chairman of the Auckland Exchange, Mr. J. W. Frater, yesterday. He said he did not wish to comment any further until copies of the forms to be used had been received and a full explanation of the working of the new regulations had been made.

One point which Mr. Frater stressed. | however, was the fact that speed was lan essential factor in share dealings, i and on the face of it the new conditions I made no provision for this. When instructions to sell had been received, brokers could not keep clients waiting while permission was received from the Reserve Bank in Wellington. It was absolutely necessary that some similar authority should be in Auckland, so that permission for the transfer could be given within, say, half an hour.

The announcement came as rather a surprise in Auckland, although brokers had held out some hopes that a system whereby trading could be resumed might be worked out when all the returns from holders of overseas securities had been received by the Reserve Bank after today. This is the second occasion since April on which dealings in these securities have been suspended and later resumed. In addition to reducing the volume of Stock Exchange business considerably, the cessation of trading has caused much embarrassment and hardship to holders of these shares. While realising the necessity for some form of wartime control, ■ the Stock Exchanges have been active in their endeavours to ease the total prohibition.

Brokers are only affected by the provisions regarding securities registered overseas, but the company itself is responsible for the conditions covering securities on New Zealand registers. The provisions will entail a considerable amount of additional work, but this will no doubt be accepted by the brokers as a wartime necessity, provided the regulations operate smoothly and without delay.