Prior acquisition of shares to deposit in securities account
MIR-4.19.45
Where the
issuer does not depositshares into thesecurities account or deposits a number ofshares that is insufficient to enablemarket making operation to commence under the agreement, there should be an initial period during which themarket maker may only buyshares of theissuer until it attains the volume that is predetermined in themarket making agreement . Such acquisition should be for the sole purpose of enabling themarket maker to commence operations under themarket making agreement and they should be performed in theissuer's best interest but without interfering or hampering normal market operations and without misleading other market participants.Added: January 2019
MIR-4.19.46
The
shares acquired in the initial period should be deposited in thesecurities account referred to in Paragraph MIR-4.19.16.Added: January 2019
MIR-4.19.47
The
market maker should not sell any of theissuer's shares deposited in thesecurities account until the initial period concludes or until it attains the limits established in terms of number ofshares or value ofshares for the purpose of undertakingmarket making .Added: January 2019
MIR-4.19.48
Where the initial period concludes and the minimum initial balance of
shares in thesecurities account referred to in Paragraph MIR-4.19.16 has not been attained, theissuer and themarket maker may:a) Extend the initial period by a length of time not greater than the initially established period.a) Terminate the agreementb) Establish a lower number of sharesAdded: January 2019
