In terms of section 12 (6) of the Stock Exchanges Control Act, 1985 (Act No. 1 of 1985), it is hereby notified that the JSE SecuritiesExchangeSouth Africa hasapplied to theRegistrar of Stock Exchanges for the approval to make amendments to its rules, as set forth in the Schedule hereto.
Words underlinedwith a solid line (-) indicate the insertions in the existing rules.
Words in bold and in square brackets (I) indicate omissionsfromexistingrules.
8.10 A brokingmember(equities)shall, assoonas it finds itselfunable to meetitscommitments, notify the [General Manager] JSEin writing to that effect and, failing to make such notification, in the event of it being declared a defaulter, it shall be ineligible for readmission as a broking member (equities).
the broking member (equities) to be a defaulter as from the time which]whenthe act of default occurred.
as though it were unableto meet its commitments.
A broking member (equities)shall cease to beabrokingmember(equities)uponthe passing of [the] a resolution bv the JSE executive declaring it to be a defaulter.
[excused] excused or, in the case of a corporate entity, upon its final liquidation.
A notice to the effect that a broking member (equities) has been declared a defaulter shall be postedto all broking members (equities).
The Clearing House shall cease to act for a defaulter from the time at which the act of default occurred.
8.40.5.3 theJSEshall, notwithstandinganything to thecontrarycontained in any lease between the defaulter and the lessorof the premises, have the right to occupy and forthwith take possession of any premises in which the defaulter camed on business at the date of default and: he defaulter and its employees shall only enter these premises under the supervision of theJSE; but the JSE shall not withhold from the defaulter reasonable access to the books and accounting reC0rd.S Of suchdefaulteror to thepremiseswherethebooksand accounting records are held.
[by a majority of three-quarters of the broking members (equities) present ata meeting specially called for the purpose] that special circumstances exist which makeit undesirable for such action to be taken.
8.40.7.4 if he intends taking action in his ownright, thatheshalladvisetheJSE thereof within 30days from the date of the notice by meansof a letter sent by registeredpost or handed over personallyto the JSE.
8.40.8.1should anycreditorofthedefaulter, otherthantheJSE, within 30days from the date of the notice referredto in 8.40.7 not serve notice upon theJSEadvising [them] thathe is pursuinghisclaimagainstthe defaulter in his own right, the JSE may at any time, and shall ifthe defaulter has not complied with the provisions of 8.40.
that ceases broking (equities) on sequestration or excursion or, in the case of a corporate entity on liquidation, the provisionsof Section 8 shall continue to bind every defaulter afterit ceases to be a broking member (equities).
Committee JSE executive will admitanyor all transactions enumerated in such statements.
All JSE settlement systems default procedures shallbe binding upon defaulters and broking members (equities).
All claims shall be supported by such evidence from a JSE settlement system as through a JSE settlement system, by advice notes from the defaulter or advice notes from the claimant duly accepted when necessary by or on behalf of the defaulter. This shall not apply in the case of claims arising from loansof scrip against money, loans of money against scrip, general advances accounts and accountsof a similar nature.
repayment in whole or in part of his loan from a broking member (equities) on the defaulter's Stock Exchange Estate.A secured creditor shallbe entitled to claim from the Stock Exchange Estate the amountso refunded to the defaulter.
The [sub-Committee] JSE executive shall accept as proof of claims arising from loans such evidence asit deems sufficient.
Amounts due by the defaulter to the JSE in terms of [4.100] 3.80 shall be a first charge against such defaulter'sStock Exchange Estate.
Scrip lentto or borrowed from the defaulter and loans of money made upon security of scrip shallbe treated as stock exchange transactions and dealt within accordance with 8.60.3.
Estate shall not sell, assign, pledge or encumber its claim against such Estateto a non-member without the consentof the [sub-Committee] JSE executive.
against and contributionsto be made to the Stock Exchange Estateof the defaulter.
8.60.2.2 "Partiallycompletedtransactions"meansatransactioninvolving broking members (equities) entered into in terms of these rules which have been completed except for the payment of a monetary accrual or delivery of a scrip accrual.
8.60.2.4 In the event of a broking member (equities) being declared a defaulter or a broking member (equities) failing to pay its debit balance by the time required under the rules and directives or on demand or in the event of the securities and other property held for its account by the Clearing House being in the opinion of the [General Manager] JSE executive insufficient to afford adequate security for its obligation to theClearingHouseorfailingondemand to furnishadditional collateral, the [GeneralManager] JSE executive in [his] discretion, having been unableto return the scripto the deliverer under 8.60.2.
to be sold. The proceeds of such sale shall be applied to the repaymentof the defaulter's debit and any surplus shall be paid over to the broking member(equities)orthedefaulter'sStockExchangeEstateasthe case may be.
1 8.60.3.2 If the JSE cannot act in terms of 8.60.3.
8.60.4.1 Subject to theprovisions of 8.60.4.2,particulars of allmonetary accruals due to or by a broking member (equities) in default as at the date and time of default shall be withdrawn from the Clearing House records and the broking members (equities) concerned shall deal with claims or contributions in connection with such monetary accruals in accordance with this rule.
8.60.4.2 All monetaryaccrualsdue to orbyabrokingmember(equities)in default which have been included in a Clearing House statement for the settlement period current on that date shall be dealt with in terms of that statement.
8.60.4.3 Incaseswhereatransactionhas beencompletedexcept forthe payment of a monetary accrual to the defaulter, the accrual shall not form part of the defaulter's Stock Exchange Estate but shall be paidor delivered by the broking member (equities) concernedto the defaulter or to his executor or trustee as the case may be.
8.60.4.5 In cases where a monetary accrual is due to the defaulter on an open transaction, whether or not the accrual has been paid by the issuer, theamountoftheaccrualshallbe paid to thedefaulter'sStock Exchange Estate.
8.60.4.6 Subjecttotheprovisionsof5.120.1, in cases whereamonetary accrual is due by the defaulter on an open transaction, whether or not the accrual has been paid by the issuer, the broking member (equities) to whom theaccrual is due shallclaimonthedefaulter'sStock Exchange Estate for the amountof the accrual.
dealt with as follows: Scrip accruals which have not been converted into new and separate transactions in terms of 5.120.
A broking member (equities) owing an amount to and having a claim against the Stock Exchange Estate ofa defaulter shall have the right of set-off in respect thereof. In the event of a trinsaction between broking members (equities) being in dispute and unsettled at the time of default, the [sub-Committee] JSE executive shall have the power to investigate and decidesuchdispute, suchdecisionbeingbindingon both the defaulter and the counterpartyto the deal. Differences arising out Of buying in securities in terms of 5.100.7 shall be allowedas claims in the defaulter's Stock Exchange Estate and any profit made thereon shall be paid to the defaulter'sStock Exchange Estate.
Subject to any right it may have to repudiate the contract for any lawful reason, a broking member (equities) shallbe responsible to its client for the due fulfilment ofa transaction in the same manner as if such transaction had not been closed bythe [sub-Committee] JSEexecutive.
terms of 8.65.2.1, the JSE shall be entitled to buy in or sell out any securities which cannot be either delivered or paid for by the defaulter or its client, in those instances where the settlement authoritv is able to procure the settlement of a transaction by means of the borrowing of securities or funds.
8.60.3.1 or 8.70.6.
Any loss or costs which cannot be recovered by the JSE in terms of 8.70.7 shall be and held by or in the custody of the defaulter or their custody and settlement aaent, as is necessary to realise an amount eaual to the amount still owina to the JSE by the defaulter.
The provisions of 8.70.8 shallnotapply to any listed securitiesbelonaina to the defaulter which have been providedas security for a loan or an advance.
8.70.11Notwithstandinotheprovisionsof8.70.10.anyclaimbythedefaulteror the JSE aqainst a client ofthe defaulter in terms of 8.70.10 shall be reduced bv the amount of margin paid bv the client to the defaulter in respect of the particular transactions in terms of 14.190.
In the event that a non-controlled client or a controlled client of the defaulter is unable to meet its settlement obligations in terms of 8.65.2.2, the provisions of 14.120.5 and respectively shall apolv. If the settlement authority is able to pmure the settlement of the transaction by means of the borowinq of securitiesor funds, as the case may be, the JSE shall be entitled to proceed in terms 14.140.9 bv concluding the relevant purchaseor sale transactions for the account of the client.
Any amount claimed from a client by the JSE in terms of 8.70.10 and 8.70.1 1 may be recovered directlv out ofany funds or securities held by the defaulter or their custody and settlement aaent on behalf of the client.
A brokingmember(equities)whoseestate is finallysequestrated or acorporateentity which is finally placed in liquidation or under judicial management shall ipso facto cease to be a broking member (equities) and 3.350, 8.10 to 8.60,8.90 and 8.100 shall apply in the same manner asif such insolvent were a defaulter.
any difference paidto the [General Manager]JSE in terms of 8.
any money or security paidto such Estate in terms of8.
any amounts refunded in terms of 8.50.
any profit accruing to such Estatein terms of 8.
any amounts paid to such Estateinterms of 3.80.
or insolvency or within a reasonable time thereafter.
8.1 10 Rules 8.10 to 8.1 00 shall apply in respect of securities and other items which may be dealt in through theJSE trading system.
On the death of a sole proprietor or the director of a single director corporate entity having transactions open with a broking member (equities) under these rulesJSE the may, in its discretion, close anyor all transactions on learning of the death or on the date when each of such transactions would othetwise have respectively matured, and all differences shall be settledon a priceto be fixed by theJSE. Should there be a profit on any of such transactions in favour of the broking member (equities) such profit shall be paid by the [General Manager] JSE to the executor of the deceased sole proprietor or director if the JSE considers such deceased person's estateto be solvent. If the JSEconsidersthedeceasedperson'sestate tobe insolventsuch profit shallform part of such deceased person's Stock Exchange Estate and be dealt with in terms of the rules relating thereto.
Any transactions which are not closed by the JSE shall be dealt with by the executors in accordance with the termsof the transactions.