Exchange Control restrictions require that foreign-owned securities carry on the share certificate the restrictive endorsement "non-resident" against transferability in the ownership of the stock. The purpose is to restrict South African residents from selling their shares overseas.

Authorised dealers are granted authority by the South African Reserve Bank to effect the endorsement and only they may cancel it. The company registrars perpetuate the endorsement and ensure that any shares registered in the name of a non-resident are so endorsed.

Where the transferee is a foreign investor, the member lodges the share certificate for registration with an endorsement by the bank after the latter has cleared payment by the foreign investor. The new certificate isssued by the company registra must carry the restrictive endorsement "non-resident" as previously described.

Any letters of right issued to non-residents must also be endorsed before they are issued, and scrip, including letters of allotment, options, etc. may not be issued to non-residents without complying with the above endorsement controls.


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Johannesburg Stock Exchange * Public Relations Department
17 Diagonal Street * Johannesburg 2001 * Telephone 27 11 377 2200
P O Box 1174 * Johannesburg 2000 * Telefax 27 11 834 7402