The Financial Markets and Insolvency Regulations 1991

Amendments to section 173 of Act concerning certain charges grantedin favour of The Stock Exchange and certain charges securing debts andliabilities arising in connection with allotment of specified securities

9.  Section 173 of the Act (market charges) shall be amended—

(a) by inserting the following paragraph after section173(1)(a)—

“(aa) in favour of The Stock Exchange, for the purpose of securing debtsor liabilities arising in connection with short term certificates;”;

(b) by inserting, in section 173(1)(c), the words“or allotment” after the word“transfer” and the words“or allottee” after the word“transferee”;

(c) by inserting“(aa),” after the words“subsection (1)(a)” in section 173(2); and

(d) by substituting the following for the first line of section 173(3)—

“In subsection (1)—

“short term certificate” means an instrument issued by The Stock Exchange undertaking toprocure the transfer of property of a value and description specified inthe instrument to or to the order of the person to whom the instrumentis issued or his endorsee or to a person acting on behalf of either ofthem and also undertaking to make appropriate payments in cash, in theevent that the obligation to procure the transfer of property cannot bedischarged in whole or in part;”