DEALINGS IN SECURITIES

Nelson Evening Mail, Volume LXXIII, 30 April 1940, Page 6

DEALINGS IN SECURITIES

RESERVE BANK ANNOUNCEMENT CONDITIONS SET OUT (United Press Association) WELLINGTON, This Day. The Reserve Bank announced today that the under-mentioned dealings in securities may until further notice be conducted through the agency of any member in the New Zealand Stock Exchange Association, subject to the conditions mentioned:— (1) Sales of securities domiciled cverseas provided a purchaser is another New Zealand resident, payment is made in New Zealand in New Zealand currency and purchaser’s scrip is sent to New Zealand immediately it is issued; or (b) the sale is made in the country of the domicile of the securities and the proceeds are made available to the Reserve Bank in the currency of that country in exchange for payment in New Zealand currency; or (c) the proceeds are reinvested in another security of the same domicile within one calendar month after the sale of the security and purchaser’s scrip is dispatched to New Zealand as soon as it is issued. (2) Sales of securities on a New Zealand register provided their retention on a New Zealand register can be ensured either by agreement with the registrars or otherwise, and the purchaser’s scrip is*held in New Zealand. Permission must be obtained before any security can be sent out of New Zealand, and trading banks have been authorised to provide the necessary certificate. Every application must be supported by a relative contract note together with evidence that it relates to the particular transactions. 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 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 New Zealand subject to the additional condition that their retention on a New Zealand register can be ensured.