This article appeared in the April 2009 Listed @ ASX email newsletter.

ASX supports ASIC proposals for Share Purchase Plans (SPPs)

ASX responded in February in support of the ASIC proposal contained in a recent ASIC Consultation Paper to raise the monetary limit for SPPs

ASX responded in February in support of the ASIC proposal contained in a recent consultation paper to raise the monetary limit for SPPs from the current $5,000 to $15,000 (in any consecutive 12 month period).

In its submission supporting the proposal, ASX pointed to the increasing importance to listed companies of SPPs as a capital raising measure and suggested that the increase could give greater flexibility to ASX listed entities undertaking capital raisings and managing their relationship with shareholders.

ASX also commented on the need to clarify the rights of beneficiaries under nominee/trustee structures to participate in SPPs. ASX also supported the wider range of ASIC proposals.

The ASX submission, as well as other submissions, can be viewed on the ASIC website.

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