Buying of securities for payment against offer of delivery of securities

22. (1) If a member buys listed securities on behalf of any buyer, or, acting as a principal, sell listed securities to any buyer who is not a member, the buyer shall, subject to the provisions of section 23 and the rules, pay the member the purchase price of such securities or, if such offer is not made, within a period of seven business day, or such other prescribed period, after the buyer buys such securities: Provided that such payment shall not be required to be made if the buyer –

1. before such purchase makes arrangements with and gives instructions to a bank or a corporate body contemplated in paragraph (b) or a subsidiary of such a corporate body, to pay for the securities against delivery thereof, and notifies the member of such arrangements and instructions; or
2. is a corporate body or a subsidiary of a corporate body, whose latest audited balance sheet as at a date not earlier than 15 months prior to the date on which the securities are bought, shows that its assets exceed its liabilities (excluding liabilities in respect of paid-up share capital and reserves) by at least R10 000 000, and –

   1. such corporate body is capable of paying for the securities against delivery thereof to itself or its subsidiary; or,
   2. in the case of such subsidiary the corporate body has furnished the member with a written guarantee undertaking to pay the debt of such subsidiary, if that subsidiary fails to pay for such securities against delivery thereof.

1. sell such securities for the account of such buyer and claim the difference between the purchase price of such securities and the selling price obtained by such member for such securities, including interest as provided for in the rules; and
2. sell for the account of such buyer –

1. so many of any other listed securities belonging to such buyer and held by or in the custody of such member; or
2. so many of any other listed securities to be delivered to the buyer in respect of any transaction relating to securities previously entered into by such buyer with or through the member, as is necessary to realise an amount equal to the amount still owing by the buyer in respect of such securities, after the sale of the securities I terms of paragraph (a).

1. If a member has been notified to the arrangements and instructions referred to in paragraph (a) of the proviso to subsection (1), he shall as soon as such securities bought or any portion thereof as provided for in the rules, are available for delivery, offer to deliver such securities to the buyer against payment of the amount due, and if payment is not made on the day of such offer the provisions of subsection (2)(a) and (b) shall apply mutatis mutandis.
2. If the provisions of paragraph (b) of the proviso to subsection (1) apply to a buyer of listed securities, the member concerned shall, as soon as the listed securities bought or any portion there of as provided for in the rules, are available for delivery, offer to deliver such securities to the buyer against payment of the amount due, and if payment is not made on the day of such offer the provisions of subsection (2)(a) and (b) shall apply mutatis mutandis.
3. In determining the amount paid or owing by any buyer to a member for the purposes of this section, the purchase price payable in respect of the listed securities sold by the member on behalf of the buyer or the purchase price payable by the member to the buyer for listed securities sold by the buyer to the member but not yet delivered to the member, as well as any funds or listed securities deposited with a member in terms of the rules for the purposes of a bear sale, shall not be taken into account.

Buying of securities otherwise than for payment against offer of delivery of securities

23 (1) If a member buys listed securities on behalf of any buyer, or, acting as a principal, sell listed securities to any buyer who is not a member on condition that the buyer is not obliged to pay for such securities against the offer of delivery of such securities, the buyer shall within seven business days, or such other prescribed period after the member buys such securities –

1. pay to the member so much of the purchase price of such securities in cash; or
2. deposit with the member listed securities of such value,as is required in term of the rule.

1. If the required cash amount or value of listed securities is not a paid or deposited within the period contemplated in subsection (1), the provisions of section 22(2)(a) and (b) shall apply insofar as it is necessary to realise the amount required in terms of the rules.
2. In determining the amount paid or owing by any buyer to a member for the purposes of this section the provisions of section 22(5) shall apply multatis mutandis.

Signing of certain forms for purposes of transferring securities

23A If any securities are sold by a member in terms of sections 22, 23 or 25 and the member is unable to obtain any form required to be signed by any person in terms of any law for the purposes of transferring such securities, the president may sign any such form on behalf of such person.

24. ………….

[S 24 repealed by Act No. 54 of 1995]

Sale of securities otherwise than by means of bear sale

25 (1) If any person, other than a member, sells securities and fails to deliver such securities to the member concerned within a period of seven business days or any other prescribed period or a period as provided for in the rules, the member shall on the next succeeding business day after the expiry of such period, or as soon thereafter as the committee may allow in a particular case –

[Sub-s (1) substituted by s 17(a) of Act No. 54 of 1991 and by s 26(a) of Act no. 54 of 1995 and amended by s 7 of Act no. 71 of 1996]

1. buy such securities and the purchase price paid by the member for such securities, including interest as provided for in the rules; and
2. sell for the account of such seller –

1. so many of any other listed securities belonging to such seller and held by or in the custody of the member; or
2. so many of any other listed securities to be delivered to the seller in respect of any transaction relating to securities previously entered into by such seller with or through the member, as is necessary to realise an amount equal to the amount still owing by the seller in respect of such securities, after the sale of the securities, after the sale of the securities in terms of paragraph (a).

(2)

1. if any person requests a member to sell listed securities on his behalf on sells listed securities to a member and advises the member concerned that he is the owner thereof or is entitled to become the owner thereof by virtue of an inheritance or in terms of any transaction entered into before the sale, but is not in possession of the securities, the member shall before he buys the securities as principal or sells the securities on behalf o such person, establish by means of proof in writing that such person is the owner thereof or entitled so to become the owner thereof, and ascertain by means of such proof of which date such person will acquire possession thereof, and sell the securities for delivery on a date not earlier than that date.
2. if any person sells listed securities in the circumstances contemplated in paragraph (a) and the member who sells them on such person’s behalf or buys them as principal is not the person who is to give possession thereof to such person as is contemplated in that paragraph, such first-mentioned person shall within seven business days after the receipt of the securities deliver them to such member.
3. If any person sells securities in the circumstances contemplated in paragraph (a) and the member does not receive the securities by the date for delivery referred to in that paragraph, the member shall on the next succeeding business day after that date or as soon thereafter as the committee may allow in the particular case, buy the securities for the account of such person.