The JSE has based its new capital requirements largely on the European Union's recent recommendations. These requirements are effective from 1 November 1995.

The base capital requirements for members are to be the higher of:

- adequate capital to meet a member's operating expenditure for a period of thirteen weeks; and

- either:

- R 200,000 in the case of a member that does not operate managed accounts for clients and does not have access to any clients cash or scrip without referral to the client or his agent; or

- R 400,000 in all other cases.

A member's risk requirements will be the sum of its position risk requirement, counterparty risk requirement, foreign exchange requirement and large exposures requirement determined in accordance with JSE directives.

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".