FOREIGN SECURITIES

Wanganui Chronicle, Volume 84, Issue 178, 31 July 1940, Page 3

FOREIGN SECURITIES

NOTIFICATION TO N.Z. RESERVE BANK CONDITIONS OF DEALINGS [ Per Press Association.] WELLINGTON, July 30. The Reserve Bank of New Zealand states that holders of foreign securities are defined in the Finance Emergency Regulations, 1940 (No. 2) are reminded that particulars of all such holdings must be notified to the Reserve Bank by to-morrow. As from Monday and until further notice dealings will be allowed in such securities between New Zealand residents as follows: (1) Securities on New Zealand registers. These securities can be dealt in without prior permission, provided lhey were on the register on June 18, 1940, and the company concerned agrees to fulfil the following requirements: Firstly, to furnish the Reserve Bank with a list of shareholders on the New Zealand register on that date; secondly, to furnish a similar list annually; thirdly, to decline to register transfer of shares into the name of a person not ordinarily resident in New Zealand at the time; fourthly, to refuse to transfer any shares to another register without permission of the Reserve Bank unless required to do so to comply with the law of the country of domicile of the company.

(2) Securities registered overseas. Before these securities can be dealt in it will be necessary for the selling broker to obtain permission from the Reserve Bank. A special form for this purpose will be supplied to stock exchanges. Permission to deal in both classes of securities is subject to the further condition that a form recording the transaction is filled in by both selling broker and buying broker and is returned by the latter to the Reserve Bank at the end of the transaction. These forms are also being supplied to the Stock Exchange. Sales of securities otherwise than to New Zealand residents will require special permission from the Reserve Bank. In such cases proceeds received overseas must be remitted to New Zealand through agents nominated by the Reserve Bank for the purpose.