1989 Ed.]
Securities
[CAP. 333
57
(b) contravenes subsection (4); or
(c) fails to retain a copy of a circular or other written communication as required by subsection (6),
shall be guilty of an offence and shall be liable on conviction to a fine of $5,000.
(11) An offence against subsection (10) is not committed by reason only that a circular or other written communication is issued to a person whose business involves the acquisition, disposal, or holding of securities.
80. Short selling prohibited
(1) A person shall not sell securities at or through the Unified Exchange unless, at the time he sells them (Amended 58 of 1985 s. 56)
(a) he has or, where he is selling as agent, his principal has; or
(b) he reasonably and honestly believes that he has or, where he is selling as agent, that his principal has,
a presently exercisable and unconditional right to vest the securities in the purchaser of them.
(2) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine of $10,000 and to imprisonment for 6 months. (Amended L.N. 57 of 1988)
(3) For the purposes of subsection (1)-
(a) a person shall be deemed to be selling securities if he-
(i) purports to sell the securities;
(ii) offers to sell the securities;
(iii) holds himself out as entitled to sell the securities; or
(iv) instructs a dealer to sell the securities;
(b) a person who, at a particular time, has a presently exercisable and unconditional right to have securities vested in him or in accordance with his directions shall be deemed to have at that time a presently exercisable and unconditional right to vest the securities in a purchaser of them; and
(c) a right of a person to vest securities in a purchaser thereof shall not be deemed not to be unconditional by reason only of the fact that the securities are charged or pledged in favour of some other person to secure the repayment of money.
(4) Subsection (1) does not apply to or in relation to-
(a) a person acting in good faith in the reasonable and honest belief that he has a right, title, or interest to or in securities that he purports to sell, offers for sale, or holds himself out as capable of selling;
(b) a dealer acting in good faith for or on behalf of some other person in the reasonable and honest belief that such other person has a right, title, or interest to or in securities that he purports to sell, offers for sale, or holds himself out as capable of selling;