Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)

Board Notices

Determination of Securities, Class of Securities, Assets or Classes of Assets that may be included in a portfolio of a Collective Investment Scheme in Securities and the manner in which and the limits and conditions subject to which Securities or Assets may be so included

Chapter ll : Money Market Portfolio

5. Determination of money market instruments
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For the purposes of this Chapter, money market instruments which may be included in a money market portfolio, other than deposits must be transferable and acknowledging indebtedness and are defined as follows:

 

(a) "asset with a branch of a foreign institution"

means a deposit with, or any instrument of indebtedness (as defined in sub-paragraphs (b) to (n)) issued by a branch of a foreign institution, which institution is authorised in terms of the Banks Act to conduct the business of a bank by means of such branch; provided that the foreign institution must be domiciled in a country which is assigned a foreign currency sovereign rating of at least the same as the Republic;

 

(b) "banker's acceptance"

means a bill as defined in the Bills of Exchange Act, drawn on and accepted by a bank;

 

(c) "bond"

means an acknowledgement of debt in which the issuer/guarantor undertakes to repay the debt together with interest on the maturity of the debt to the holder of the bond;

 

(e)"commercial paper"

means any negotiable acknowledgement of debt;

 

(f)"debenture"

means debenture stock, debenture bonds and any other securities of a company, whether constituting a charge on the assets of the company or not;

 

(g)"deposit"

means a deposit as defined in the Banks Act, or in the Mutual Banks Act;

 

(h)"Islamic Compliant Instrument"

means an Islamic Complaint Instrument as defined in this Notice;

 

(i)"land bank bill"

means a bill or note as defined in the Bills of Exchange Act, drawn, accepted or issued by the Land and Agricultural Bank of South Africa;

 

(j)"negotiable certificate of deposit"

means a certificate of deposit issued by a bank, and payable to order or to bearer;

 

(k)"public entity bill"

means a bill or note as defined in the Bills of Exchange Act, drawn, accepted or issued by a parastatal institution;

 

(l)"promissory note"

means a promissory note as defined in the Bills of Exchange Act;

 

(m)"trade bill" or "trade note"

means a bill or note as defined in the Bills of Exchange Act, drawn, accepted or issued to provide for the payment for goods;

 

(n) "treasury bill"

means a bill drawn by the Government on the Secretary to the Treasury calling on the latter to pay a sum certain in money to a specified person or his order or to bearer, on demand or on a certain specified future date.