DEALINGS IN SHARES

Timaru Herald, Volume CLI, Issue 22215, 7 March 1942, Page 5

DEALINGS IN SHARES

Amendment To Australian Regulations (Rec. 6.30) CANBERRA, March 6. Important modifications in the Federal Government’s national economic mobilisation plan are to be made to permit resumption of some dealings in shares, stocks and land. The Government has accepted the recommendations of a joint committee of both Houses appointed to report on the plan. Regulations embodying the modifications will be gazetted in a few

days. The Government is to amend the regulation limiting profits to 4 per cent exclusive of tax, so that it will take effect from a date to be fixed by Parliament, but no earlier than July 1 next The sale of shares which have been registered in the seller's name for not less than five months is to be permitted and the Stock Exchanges have undertaken to fix maximum and minimum prices within which sales shall be effected. The transfer of shares and lands will be permitted where the selling price is not more than 10 per cent above a fair and reasonable price as on February 10 last and of all other lands where the vendor has been owner for not less than 12 months before the date of sale and the selling price is not more than 10 per cent above a fair and reasonable price on February 10. Modifications Welcomed Investors and brokers welcome the modifications of the Federal Government’s economic regulations relating to share transfers to-day. It is hoped that a flow of business, comparing favourably with that recorded before the ban on free trading took effect, will be possible. Actual trading in company shares will not be resumed until a scale of maximum and minimum prices has been fixed by the stock exchanges. Some time is likely to elapse before the schedule is prepared. Share prices will be allowed to fluctuate 10 per cent’ above and below the rates ruling on February 19 or such basic price as is determined by the Exchange Committee to be in line with the market at that date. Provision will be made for a periodical revision of prices in the light of changing factors. It is understood that the onus will be on sellers to comply with the five months holding requirements.