The amended Act together with the JSE's new rules, effective from 8 November 1995, cater for the following categories of members:

- a natural person;

- a partnership of natural persons;

- a private company - corporate member with unlimited liability;

- a public company or a private company with limited liability having:

- only stockbrokers as its shareholders; or

- non-stockbroker shareholders with a prescribed minimum number of shareholders as directors.

A stockbroker will be required to be a member of the South African Institute of Stockbrokers ("the Institute") and may be a sole proprietor, a partner in a partnership, or a director of a corporate entity, or an employee of a member. If a person is a member of the Institute but is not a member of the JSE nor an employee of a member, that person is referred to as a non-practising stockbroker.

Every member must appoint an officer responsible for ensuring compliance by the member with the provisions of the Act, the JSE rules and JSE Committee directives and decisions. Compliance officers fall into either of the following categories:

- a stockbroker with not less than 5 years experience in the broking community; or

- a stockbroker and a member of the South African Institute of Chartered Accountants with not less than 2 years experience in the broking community; or

- a stockbroker who has passed the JSE's compliance officer examination.

Any person qualifying as a compliance officer under the first two categories has until 31 October 1996 to pass the compliance officer examination should they wish to remain as a compliance officer.

The number of Stock Exchange rights ("rights") required to be held by member firms (subsequent to 8 November 1995) is as follows:

- Sole Proprietor
3 rights (minimum requirement)

- Partnership
3 rights per partner, subject to a maximum of 60

- Non-Limited Liability Corporate Entity
3 rights per stockbroker director, subject to a maximum of 60

- Limited Liability Corporate Entity
(all shares held by stockbrokers)
3 rights per stockbroker director, subject to a maximum of 60

- Limited Liability Corporate Entity
(with any non-stockbroker shareholders)
60 rights

Only the member (trading entity) is required to hold rights and may hold up to 30 surplus rights. Stockbrokers may hold rights up to a maximum of 10.
In summary, the major changes to membership of the JSE are:

- the member is now the trading entity and not the individual;

- the formation of the South African Institute of Stockbrokers which will be responsible for examination, admission, and discipling of stockbrokers;

- the abolition of the requirement that all stockbrokers be South African citizens;

- stockbrokers need not hold any rights, the member firm is now required to hold the required minimum rights; and

- members may now operate with limited liability.

Whilst every care has been taken in the preparation of this article, the JSE is not responsible for any errors or omissions contained therein. Readers should therefore study the original Act, rules and other documents referred to or consult with the JSE before acting on any information supplied.

For further information kindly contact: JSE Public Relations Department, PO Box 1174, Johannesburg 2000. Tel: 377 2200; Fax: 834 7402; or do a text search "Johannesburg Stock Exchange" and "Business Monitor".