Paragraph 9

Section 263A (agreements for sale and repurchase of securities) is amended as follows.

Before subsection (1) insert—

“(A1)

For the purposes of this section there is a repo in respect of securities if—

(a)

a person (“the original owner”) has agreed to sell the securities to another person (“the interim holder”), and

(b)

the original owner or a person connected with the original owner—

(i)

is required to buy back the securities by the agreement or a related agreement,

(ii)

is required to buy back the securities as a result of the exercise of an option acquired under the agreement or a related agreement, or

(iii)

exercises an option to buy back the securities which was acquired under the agreement or a related agreement.”

In subsection (1), for the words from “falling” to “repos)” substitute “ where under a repo in respect of securities the original owner has transferred the securities to the interim holder ”.

Omit subsection (5).