OVERSEA SECURITIES

Grey River Argus, 3 August 1940, Page 3

OVERSEA SECURITIES

N.Z. Regulations STOCK EXCHANGE PRESIDENT’S EXPLANATION. WELLINGTON, August 1. The president of the Stock Exchange Association of New- Zelaland, Mr Andrew Hamilton, when asked if the exemptions under the Finance Emergency Regulations No- 2, as published on Tuesday, had any relationship to the representations which his association had been making to the governor of the Reserve Bank since the regulations were announced, advised that .they were the bulk of what had been asked for on behalf of investors. Holder s of overseas securities were now in almost the same position for trading as they Were before th e No. 2 regulations oa'me Into force. Transactions will again be permitted as from Monday next between New Zealand residents in New Zealand markets. Shareholders here are also permitted to send scrip to Australia for sale there provided the proceeds are remitted to th G Reserve Bank. Facilities now exist for the repatriation of such funds subject to further examination from time to time.

The only form of trading previously permitted under the No. 1 Regulations, but now granted under thtNo. 2 Regulations, was a change from one form of overseas investment to another in the Australian market. Where a shareholder has an Australian investment which he has reason to doubt and it is not saleable here, he was allowed previously to self it in Australia and with the proceeds buy another investment, bringing the new scrip back here. Now, if his first investment is not good enough, he may sell it in Australia and bring his money back or risk holding those shares which he feels might come down further. It was difficult to see the reason for this restriction, as the result might well he a progressive diminution of our overseas assets and a furtner increase in the repatriation of funds to this country, which might in turn lead to a discontinuance of th e present arrangement under which the proceeas of sales can be brought back. The association was still negotiating with the Reserve Bank for a simpler form of advice from the broker before carrying out his client’s insti’tiotions to sei], and it wa s hoped that the result of further suggestions would be known before' the end of the week. In the meantime, holders of overseas shares were advised toe send in their forms as quickly a s porc'bie if they had not already done so, and thus place themselves in the positi'.n of being able to deal with their securities when the market opens again next week.