Document ID: chunk:federal_register_of_legislation:F2016L01479:body:0:p2
Version: federal_register_of_legislation:F2016L01479
Segment Type: other
Provision Reference: 
Character Range: 2743–5659

those Division 3 securities (or those equivalent securities) in the entity to which they are delivered.";
(b) after paragraph 7.11.17(4)(a) insert:
            "(ba) if a designated broker is given authority by or on behalf of the absolute beneficial owner of Division 3 securities to sell or transfer those Division 3 securities, the designated broker is taken to have authority from the transferor to:
                (i) sell or transfer those Division 3 securities; and
                (ii) execute an instrument of transfer of those Division 3 securities;
            on the transferor's behalf, even if no authority is given by the transferor;";
(c) in paragraph 7.11.19(2)(f), omit "paragraph 7.11.17(4)(a),", substitute "paragraph 7.11.17(4)(a) or (ba),";
(d) omit subregulation 7.11.40(1), substitute:
"(1)  A broker must not stamp with a broker's stamp a document (a transfer document) that relates to Division 3 securities and may be used as a sufficient transfer under this Part, unless the transfer document relates to:
              (a)  a sale or purchase of the Division 3 securities, in the ordinary course of the broker's business, for a consideration of not less than their unencumbered market value at the time of the sale or purchase;
              (b)  the performance of obligations under a securities lending arrangement; or
              (c) a transfer from or to a broker's clearing account in accordance with the operating rules of the financial market in which the broker is a participant."; and
(e) in paragraph 7.11.40(2)(b), omit "paragraph 7.11.17(4)(a),", substitute "paragraph 7.11.17(4)(a) or (ba),".

7 Transfers of options over unissued securities

Regulations made for the purposes of section 1073D of the Act have effect in relation to Division 3 rights as if the following provisions of the Regulations were modified:
(a) in regulation 7.11.01 insert in the appropriate alphabetical order the following definition:
"company option means a Division 3 right that is an assignable option to acquire by way of issue shares or debentures in a company on payment of an exercise price.".

(b) after subregulation 7.11.10 insert:
"7.11.10A  Company options
For the purposes of regulations 7.11.11 to 7.11.14, and of the forms in Schedule 2A, a Division 3 right that is a company option is taken to be a Division 3 asset and not to be a Division 3 right.";
(c) before paragraph 7.11.16(1)(a) insert:
            "(aa) to have agreed at the execution time to accept the rights subject to the terms and conditions on which the transferor held them immediately before that time, being the terms and conditions that are applicable as between the issuer in relation to, and the holder for the time being of, the rights;";
(d) at the beginning of paragraph 7.11.16(1)(a) insert:
 "at the time (the payment time) at which the transferee subsequently makes payment to the issuer in relation to