Irish Stock Exchange - New Regulations for Share Transactions

New Regulations For The Operation Of An Electronic Settlement System For Share Transactions

New regulations are being introduced to provide for the operation in Ireland of an electronic settlement system for share transactions. The draft regulations are being finalised at present and are expected to be similar to those already in existence in the United Kingdom where a new system of electronic settlement is to be adopted in the Summer of 1996. It is expected that most companies quoted on the Irish Stock Exchange will opt for electronic settlement when the system is fully operational (at present, the target date is the end of Autumn 1996). In his budget speech, the Minister for Finance announced that the Finance Bill, 1996 will extend stamp duty and capital duty on share transfers and the issue of shares under existing legislation both duties arise on "paper" transactions and generate a tax of 1% on the transfer or issue value subject to certain exemptions) to electronic transfers.

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