Settlements in South Africa with banks are normally concluded on the basis of scrip against payment. Settlements normally take about one week to complete after allowing for foreign exchange transfers, etc. and can take place in any currency.

Where a member operates a foreign client's account under a discretionary account mandate, the member arranges for the endorsements or cancellations and settles cash through the client's bank account with the authorised dealer. In all instances the purchase and sale transactions must be supported by brokers' notes.

The JSE rules make provision for issuing foreign currency brokers' notes to suit the preferences of the client.

When purchasing, scrip is presented by the member to the authorised dealer for endorsement after the dealer has satisfied himself that payment has been made.

On the sale of securities, scrip with the endorsement cancelled is tendered by the authorised dealer to the member against payment for credit to the client's bank account.

As an alternative, JSE members accept scrip directly from the overseas selling counterparty and arrange for the cancellation of the endorsement and payment to the authorised dealer. Similarly in a purchase the member will arrange for the payment by an authorised dealer with the endorsement of the scrip for registration purposes.

Any foreign currency may be used for payment in transactions taking place between two foreign investors on a market outside South Africa. However the non-resident endorsement must be perpetuated on registration into the purchaser's name.


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