Ban On These Dealings In Securities Lifted

Northern Advocate, 30 April 1940, Page 6

Ban On These Dealings In Securities Lifted

r Per Press Association. —Copyright.] WELLINGTON. This Day. The Reserve Bank announced today that the undermentioned dealings In securities may, until further notice, be conducted through the agency of any member of the New’ Zealand Stock Exchange Association, subject to the conditions mentioned: — (1) Sales of securities domiciled overseas, provided (a) the purchaser is another New Zealand resident, and that payment is made in New Zealand in New Zealand currency, and that the nurchaser’s scrip is sent back to New Zealand immediately it is issued; (b) the sale is made in the country of domicile of the securities and the proceeds are made available to the Reserve Bank in the currency of that country in ex. change for payment in New Zealand currency; (c) the proceeds are invested in another security of the same domicile within one calendar month after the sale of the security, and the purchaser’s scrip is despatched to New Zealand as soon as it is issued. Securities on N.Z. Register.

(2) Sales of securities on a New Zealand register, provided their retention on a New Zealand register can be ensured either by agreements with the registrars or otherwise, and that the purchaser’s scrip is held in New Zealand. Permission must be obtained before any security can be sent out of New Zealand and the trading banks have been authorised to provide the necessary certificate. Every application must be supported by the relative contract note, together with evidence that it relates to the particular transactions. Overseas Securities May be Pledged. Any transaction not covered by the above arrangement, involving the sending of a security out of New Zealand, should be submitted to the Reserve Bank through 'the applicant’s broker. Provided that the relative scrip is held in New Zealand, securities domiciled overseas may be pledged to secure loans in New Zealand, as also may securities on a New Zealand register of concerns having a register both in and outside of New Zealand. This is subject to the additional condition that their retention of the New Zealand register cafi be ensured.