Commonwealth Numbered Regulations - Explanatory Statements

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CORPORATIONS REGULATIONS (AMENDMENT) 1993 NO. 277

STATUTORY RULES 1993 No. 277

Issued by the authority of the Attorney-General

Corporations Act 1989

Corporations Regulations (Amendment)

Section 22 of the Corporations Act 1989 (the Act) empowers the Governor-General to make regulations for the purposes of the Corporations Law. In particular, it empowers the GovernorGeneral to make regulations, not inconsistent with the Act or the Corporations Law (the Law), prescribing, inter alia, matters which are required by the Law to be prescribed by regulations or necessary or convenient to be prescribed by regulations for carrying out or giving effect to the Law.

The purpose of the Regulation is:

•       to prescribe the Australian Stock Exchange Gold Share Price Index for the purposes of para (b)(ii) of the definition of 'option contract' in section 9 of the Corporations Law.

The Australian Stock Exchange Gold Share Price Index reflects the market's response to gold price movements, new discoveries and improved production methods. It is calculated by the Australian Stock Exchange (ASX) on the basis of the quoted share prices of listed gold exploration and mining companies in accordance with the market capitalisation of each company.

The Index is calculated throughout each day of trading as its composite securities are traded and is published daily in the financial press. Additional stocks are eligible to be included in the composition of the Index provided certain criteria are met. At present, the Index is compiled from the share price of 29 listed companies in the gold industry.

Prescription of the Gold Share Price Index will bring Gold Share Price Index option contracts within the definition of 'option contract'. This will permit listing and trading of options over the Index on the ASX without the application of the gaming and wagering laws.

In accordance with the Heads of Agreement between the Commonwealth, State and Territory Ministers having responsibilities in relation to corporate regulation and the draft Corporations Agreement, the Attorney-General has consulted with the Ministerial Council for Corporations about the proposed regulation.

Details of the Regulation are contained in the Attachment.

The Regulation commenced on the date of gazettal.

ATTACHMENT

Regulation 1

Amendment

Regulation 1 provides that the Regulations amend the Corporations Regulations.

Regulation 2

Regulation 7.1.03 (Prescribed index: definition of "option contract")

Regulation 2 prescribes the Australian Stock Exchange Gold Share Price Index for the purposes of para (b)(ii) of the definition of 'option contract' in section 9 of the Corporations Law.

Prescription of the Gold Share Price Index brings Gold Share Price Index option contracts within the definition of 'option contract'. This permits listing and trading of options over the Index on the Australian Stock Exchange without the application of the gaming and wagering laws.