Krugerrands

Question 1

Do the provisions of the Act and the rules and directives which apply to equity securities also apply to transactions in
Krugerrands?

Answer 1

Yes, where applicable

Question 2

A contract note need not be issued by a member to its client in respect of each transaction in Krugerrands. True or False?

Answer 2

False.

you must issue a contract note

Question 2

“settlement period”

Answer 2

One of the prescribed portions of the year for the settlement of Krugerrands, as set out in the directives.

Question 3

1. How are Krugerrands required to be delivered?
2. When are Krugerrands required to be delivered between members?
3. Is a purchasing member obliged to accept a part delivery in respect of a Krugerrand transaction?

Answer 3

1. Directly between members.
2. On any business day of the new settlement period during the hours laid down in JSE directives.
3. No.

deliver Krugerrands in full!!

Question 4

What procedures must be followed when deliveries of Krugerrands are made between members?

Answer 4

1. The delivering member must affix its member’s rubber stamp to and sign each of the 2 delivery slips produced by the BDA system.
2. Upon acceptance of the Krugerrands the receiving member must affix its member’s rubber stamp to and countersign the 2 delivery slips and retain 1 for its records.
3. The deliverer’s copy must be returned to the delivering member.
4. Payment must be effected either by bank marked cheque or electronic transfer of funds in respect of such deliveries as arranged between members.

Question 5

what does acceptance of delivery of Krugerrands by a member or client constitute?

Answer 5

An acknowledgement that the receiver has inspected the coins and that they are genuine which, in the case of coins held in safe custody, will only be effective upon acceptance out of safekeeping

Question 6

When must a purchaser pay a member for Krugerrands which a member has agreed to hold in safe custody?

Answer 6

Against acknowledgement by the member that coins have so been placed in safekeeping.

Question 7

What must a member do when Krugerrands purchased on behalf of clients come into its possession?

Answer 7

1. Allocate them in the member’s records as soon as practicable so as to establish the identity of the purchaser.
2. Place the coins in safe custody if mandated to do so.
3. Deliver them to the client if they are fully paid for, or offer them to the client for payment.

Question 8

What provisions apply where a member and a client enter into an agreement which authorises such member to hold Krugerrands in safekeeping on behalf of the client?

Answer 8

1. A signed mandate which must contain the minimum requirements prescribed by the JSE must be obtained from the client.
2. The coins must be deposited by the member in a safe custody container with a banking institution or in a suitable container in the member’s safe in a strong room.
3. A register of each mandate and a safe custody ledger must be kept

Question 9

How are transactions in Krugerrands required to be recorded in the books of a member?

Answer 9

On the same basis as a record is maintained for transactions in equity securities except for coin movements which needs not be entered in the securities scrip register but a separate register may be used for that purpose.