Corporations Act 2001
Note: Section 1020B prohibits certain short sales of section 1020B products.
In this Division:
(a) on behalf of both the buyer and the seller of the products; or
(b) on behalf of the buyer of the products and on its own behalf as seller of the products; or
(c) on behalf of the seller of the products and on its own behalf as buyer of the products.
section 1020B products
has the meaning given by subsection 1020B(1) .
(a) one entity (the lender ) agrees that it will:
(i) deliver particular securities, managed investment products, foreign passport fund products or other financial products to another entity (the borrower ) or to an entity nominated by the borrower; and
(ii) vest title in those products in the entity to which they are delivered; and
(b) the borrower agrees that it will, after the lender does the things mentioned in paragraph (a):
(i) deliver the products (or equivalent products) to the lender or to an entity nominated by the lender; and
(ii) vest title in those products (or those equivalent products) in the entity to which they are delivered.
To avoid doubt, for the purposes of this Division, treat the entering into of an agreement to sell section 1020B products as the sale of the products. 1020AA(3)
To avoid doubt, for the purposes of this Division, treat a financial services licensee as making a sale on behalf of a person if the sale is, in economic substance, made by the licensee for the person.
A request that the sale be made is passed from the person to the financial services licensee through a chain of intermediaries.
For the purposes of this Division, treat a crossing of section 1020B products as being made on a licensed market.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.