| (1) | Except with the consent of the Treasury and in accordance with such conditions as the Treasury may impose, no person shall during any period of twelve months— |
| (a) | make in the Republic an issue or issues of capital which amount in the aggregate to more than ten thousand rand; or |
| (b) | renew or postpone the date of maturity of securities maturing for repayment in the Republic which amount in the aggregate to more than ten thousand rand. |
| (2) | The Treasury may from time to time by notice in the Gazette— |
| (a) | exempt particular classes of issuers of capital, either generally, or in respect of particular classes of issues of capital, from the operation of subregulation (1); or |
| (b) | increase, either generally or in respect of particular classes of issues or issuers of capital, the aggregate exemption limit of ten thousand rand prescribed in subregulation (1); |
and may by similar notice withdraw any such aforementioned notice or reduce to not less than ten thousand rand any exemption limit prescribed in any such aforementioned notice as the case may be.
| (3) | For the purposes of this regulation— |
| (a) | a person shall be deemed to make an issue of capital who— |
| (i) | raises capital in the Republic by the issue, whether within or outside the Republic, of any securities or who issues any securities whether for cash or otherwise; or |
| (ii) | receives any money on loan on the terms or in the expectation that the loan will or may be repaid wholly or partly by the issue of securities or by the transfer of any securities issued after the making of the loan; |
| (b) | the amount of capital issued or to be issued shall be deemed to be the amount to be raised by the issue or the total nominal value of the securities whichever is the greater. |
| (4) | The raising of any loan by any local authority shall be deemed to constitute an issue of capital whether or not securities are issued or transferred in connection with such loan. |
| (5) | No local authority shall without the written consent of the Treasury raise any loan outside the Republic. |
| (6) | If in any advertisement, prospectus or other document which offers for subscription any securities there be included any statement intimating or purporting to convey that the Treasury has approved or consented to the issue of the securities, such statement shall be included only at the top or commencement of the advertisement, prospectus or other document and shall be made and qualified in the following words:— |
"The Treasury has consented under Exchange Control Regulation 16 to the issue of the securities referred to hereunder but that consent does not imply that the Treasury has investigated or is responsible in any way for the soundness of the proposals involved or for the correctness of any statements made or opinions or estimates given in connection with such proposals."
