SECURITY DEALINGS

Manawatu Standard, Volume LX, Issue 129, 1 May 1940, Page 8

SECURITY DEALINGS

CONDITIONS ANNOUNCED. SALES OVERSEAS. - Per Press Association. WELLINGTON, April 30. The Reserve Bank announced to-day that the undermentioned dealings in securities may, until further notice, be conducted through the agency or 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, payment is made in New Zealand currency, and 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 and the proceeds are made available to the Reserve Bank in the currency of that country in exchange lor payment in New Zeavuid 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 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 registrar or otherwise, and the purchaser’s scrip is held in New Zealand. Permission must be obtained before any security can be sent out of Nen 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. Any transaction not covered by the above arrangements 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 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.