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Saturday, 27 May 2017

The Amendment of the JSE Limited and Strate Limited Rules

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The recent JSE and Strate amendments seek to introduce a number of BEE-related definitions into the rules. A few examples of these are “BEE certificate”, “BEE Codes” and “BEE compliant person”. Most of these definitions originate from the Broad-Based Black Economic Empowerment Act, 2003. JSE Limited (“JSE”) and Strate Limited (“Strate”) applied to the Registrar of Securities Services for an approval of the proposed amendments of their respective rules in terms of section 61(5) of the Securities Services Act, 2004 (“the Act”). The proposed rules were approved and since there were no objections, they came into force on 4 February 2011. The JSE amendments deal with transactions in BEE securities as follows: Only BEE compliant persons may purchase BEE securities, unless the registered owner will be acting as a nominee on behalf of a beneficial owner, in which case the beneficial owner must be a BEE compliant person. In addition the rules require that a BEE Contract is concluded. BEE Securities cannot be purchased for the member’s own account unless the member qualifies as a BEE compliant person and has signed a BEE contract.


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