THE BANKING COUNCIL SOUTH AFRICA
4 October 2004
Portfolio Committee on Finance
Direct Tel No.:(27) 11 645-6702
Direct e-mail:[email protected]
Section 13(6)(b) of the Securities Services Bill
We have been concerned about the provisions of Section 13(6)(b) of the Securities Services Bill, in that they rely on the criteria of one exchange to determine whether a company qualifies for admission to another exchange.
After discussion with the JSE Securities Exchange, we would support an amendment to the subsection to read as follows –
"13(6)(b) If the refusal to list securities or the removal of securities referred to in paragraph (a) was due to any fraud or other crime committed by the company, material misstatement of its financial position, non disclosure of any fact required to be disclosed under the listings requirements, failure to comply with any corporate governance or accounting standards determined by the Registrar to be generally accepted by the public or for any other reason, in which there is a public interest, no other exchange in the Republic may, for a period of six months from the date referred to in paragraph (a), grant an application for the inclusion of the securities concerned in the list kept by it, or allow trading in such securities, unless the refusal or removal has been withdrawn by the first exchange or set aside on appeal by the board of appeal in terms of section 111."
We understand that the JSE will be attending the hearings of the Portfolio Committee to make a proposal to the Committee that such an amendment should be made. We would like the Committee to know that we support an amendment to the Bill in this form.
We would greatly appreciate it if the Committee would take cognisance of such a proposal, and ask you and the Committee to excuse us from not making this submission in person. Yours sincerely,
CHIEF EXECUTIVE OFFICER