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FRIDAY, OCTOBER 27, 1989
IT WILL LATER PROCEED TO THE SUN HING BUILDING IN NATHAN ROAD FOR "ON-SITE" FUNERAL RITES EN ROUTE TO THE CHAI WAN CHINESE PERMANENT CEMETERY WHERE MR CHAN WILL BE BURIED.
NOTE TO EDITORS:
MEDIA REPRESENTATIVES WISHING TO COVER THE OFFICIAL FUNERAL SERVICE SHOULD ARRIVE AT TSIM SHA TSUI FIRE STATION AT 10.15 AM ON TUESDAY. INFORMATION OFFICERS WILL BE ON HAND TO ASSIST.
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STAMP DUTY RELIEF ON STOCK BORROWING TRANSACTIONS
A BILL SEEKING TO PROVIDE FOR STAMP DUTY RELIEF ON STOCK BORROWING TRANSACTIONS WAS PUBLISHED IN THE GAZETTE TODAY (FRIDAY).
EXPLAINING THE BACKGROUND OF THE PROPOSED AMENDMENTS, A GOVERNMENT SPOKESMAN SAID THE BILL WAS INTENDED TO GIVE EFFECT TO THE PROPOSAL PUT FORWARD IN THE 1989-90 BUDGET TO GRANT STAMP DUTY CONCESSION FOR THE BORROWING OF SHARE SCRIP USED ΤΟ RESOLVE LEGITIMATE SETTLEMENT PROBLEMS.
UNDER EXISTING LEGISLATION, ANY PERSON WHO BORROWS OR LENDS STOCK IS CONSIDERED TO HAVE BOUGHT OR SOLD THAT STOCK AND IS REQUIRED TO PAY STAMP DUTY IN RESPECT OF THE TRANSACTIONS.
THE STAMP DUTY (AMENDMENT) BILL 1989, IF PASSED BY THE LEGISLATIVE COUNCIL, WILL GRANT STAMP DUTY RELIEF IN RESPECT OF TRANSACTIONS WHERE STOCK IS BORROWED FOR THE SOLE PURPOSE OF SETTLING A SALE OF HONG KONG STOCK WHICH IIAS BEEN EFFECTED ON THE UNIFIED EXCHANGE, AND STOCK OF THE SAME QUANTITY AND DESCRIPTION AS THAT BORROWED IS RETURNED WITHIN 14 DAYS.
AND
"THE BORROWING OF STOCK 1S AN INTERNATIONALLY RECOGNISED ACCEPTED METHOD OF SETTLING A TRANSACTION WHERE DELIVERY OF THE ACTUAL SCRIP SOLD BY THE VENDOR IS DELAYED," THE SPOKESMAN EXPLAINED.
"UNDER THE CURRENT 24 HOUR SETTLEMENT SYSTEM IN HONG KONG, THE AVAILABILITY OF STOCK BORROWING IS VITAL TO AVOID SETTLEMENT BACKLOGS."
THE SPOKESMAN ADDED THAT TO FACILITATE THE ADMINISTRATION AND COUNCIL OF THE CONCESSION, "APPROVED BORROWERS" WILL IN GENERAL BE RESTRICTED TO MEMBERS OF THE UNIFIED EXCHANGE. APPROVED BORROWERS WILL BE REQUIRED TO KEEP RECORDS AND FURNISH RETURNS RELATING TO THEIR STOCK BORROWING AND STOCK RETURNS.
THE STAMP DUTY (AMENDMENT) BILL IS SCHEDULED TO BE INTRODUCED INTO THE LEGISLATIVE COUNCIL FOR FIRST READING ON NOVEMBER 15 THIS YEAR.
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