ASIC Market Supervision Update Issue 52

Special issue 52 - November 2014

Short sales of securities in the Medibank Private Share Offer

Trading of Shares in Medibank Private Limited (code MPL) on a conditional and deferred settlement basis is due to commence on 25 November 2014. 

Section 1020B of the Corporations Act 2001 (the Act) prohibits the sale of securities unless a person has a presently exercisable and unconditional right to vest the product in the buyer. During the period of conditional and deferred settlement trading, selling of securities in MPL may arguably be in breach of s1020B of the Act.

ASIC will grant relief from the prohibition of certain short sales of securities in MPL, provided:

a) Shares have been allocated to the person in accordance with the Medibank Private Share Offer Prospectus dated 20 October 2014

b) Shares have been obtained during trading on the conditional market, or

c) transactions occurring during the conditional market are reported to the market operator under the market operating rules.

Broker Firm Applicants should contact their broker to confirm their allocation of shares before trading.  Retail investors who have been allocated Shares may visit the Medibank Private Share offer website (www.medibankprivateshareoffer.com.au) or call 1800 998 778 with their Application Reference Number to obtain information about their allocation of Shares.

Investors who sell Shares over the number allocated to them will be in breach of the short selling provisions of the Act.

Last updated: 30/03/2021 09:35