Government of Canada / Gouvernement du Canada
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Bank Act

Version of section 270 from 2003-01-01 to 2006-11-27:

Marginal note:Short selling prohibited

  •  (1) An insider shall not knowingly sell, directly or indirectly, a share of the distributing bank or any of its affiliates if the insider does not own or has not fully paid for the share to be sold.

  • Marginal note:Exception for convertible shares

    (2) Notwithstanding subsection (1), an insider may sell a share that the insider does not own if the insider owns another share convertible into the share sold or an option or right to acquire the share sold and, within ten days after the sale, the insider

    • (a) exercises the conversion privilege, option or right and delivers the share so acquired to the purchaser; or

    • (b) transfers the convertible share, option or right to the purchaser.

  • Marginal note:Prohibited calls and puts

    (3) An insider shall not, directly or indirectly, buy or sell a call or put in respect of a share of the bank or any of its affiliates.

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