The Toronto Stock Exchange is seeking comment on the latest amendments to its policies dealing with normal course issuer bids (NCIBs).

On Aug. 2, 2002, TSX originally published for comment amendments to its rules, including changes to TSX’s policy on normal course issuer bids through TSX. Additional amendments were then published on Jan. 2, 2004, including the proposed removal of the policies on bids through the facilities of TSX, other than NCIBs.

As a result of the comments received by TSX, further amendments have been made to the NCIB policy and a portion of TSX’s policy on debt substantial issuer bids has been re-inserted and the amendments are therefore being republished for a 30 day comment period. Comments are due by December 5.

The amendments are intended to provide listed issuers with a complete and transparent set of TSX standards and practices allowing issuers and investors, and their advisors, to have certainty when planning and completing transactions.

The amendments contain changes that reflect practice in other jurisdictions, as well as codifying administrative internal TSX practices. For example, TSX had proposed to provide an exemption to the 2% purchase restriction for issuers with high trading volumes on TSX. Following the comments on the high volume exemption, TSX proposes replacing the 2% and high volume exemption with a daily repurchase restriction.

The amendments also incorporate internal guidelines that provide requirements regarding the acceptable terms for derivatives, purchase restrictions and reporting and disclosure requirements.

In the January amendments, TSX had proposed to remove its policies on take-over and issuer bids through the facilities of TSX. Following internal discussions, TSX recognized that the policy on debt substantial issuer bids for debt securities is necessary in order to maintain a quality marketplace, it says.

“The amended policy ensures that security holders can participate equally in a debt substantial issuer bid, which TSX believes is important since such a bid may significantly impact the liquidity of the market for the listed securities,” it says, noting that other former TSX policies related to bids through the TSX have not been re-inserted.