OVERSEAS SCRIP

Dominion, Volume 33, Issue 184, 1 May 1940, Page 12

OVERSEAS SCRIP

Announcement Reserve Bank CONDITIONS OF SALES The Reserve Bank of New Zealand announces that the undermentioned dealings in securities may, until further notice, be conducted through the agency of tiny member of the New Zealand Stock Exchange Association, subject to the conditions mentioned below:— L Sales of securities domiciled overseas, provided: (a) (i) The purchaser is another New Zealand resident; (ii) payment is made in New Zealand, in New Zealand currency; (Hi) the purchaser’s scrip is sent to New Zealand immediately it is issued; or (b) the sale is made in the country of domicile of the securities, aud the proceeds arc made available to the (Reserve Bank in the currency of that conncry iu. exchange for payment ip New Zealand currency; or (e) the proceeds are re-invested in another security of the same domicile within one calendar month alter the sale of the security, and the purchaser’s scrip is despatched to New Zealand as soon as it is issued. 2. Sales of Securities on a New Zealand register, provided their retention on the New Zealand register can be ensured, either by agreement with the Registrars, or otherwise, aud 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 authorized to provide the necessary certificate. Every application must be supported by tile relative contract note, together with evidence that it relates to the particular transaction. Any transaction, not covered by the above arrangement, involving the sending of a security out ot 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 the New Zealand register of concerns having a register both in and outside New Zealand, subject to the additional condition that their retention on the New Zealand register can be ensured.