Money to be kept in bank account.
Accounts of fund.
Stock ex- changes to make deposits in respect of members.
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security for any such loan; but the aggregate sum owing at any one time in respect of any such loans shall not exceed $1,000,000.
102. The Commission shall open at one or more licensed banks a separate bank account or separate bank accounts and shall, pending its application in accordance with this Part, pay into or transfer to that account or those accounts all money forming part of the compensation fund.
103, (1) The Commission shall keep proper accounts of the compensation fund, and shall in respect of the financial year beginning before and ending after the day on which this section commences, and in respect of each subsequent financial year, pre- pare a revenue and expenditure account, and a balance sheet made up to the last day of that year-
(2) The Commission shall appoint an auditor to audit the compensation fund.
(3) The auditor so appointed shall annually audit the accounts of the compensation fund and shall audit, and prepare an auditor's report in respect of, each balance sheet and revenue and expenditure account prepared under subsection (1) and shall submit the report to the Commission.
(4) Not later than the 31st day of July in each year the Commission shall cause a copy of the audited balance sheet, revenue and expenditure account, and the auditor's report to be sent to the Council of the Federation and to each stock exchange.
104. (1) Every stock exchange shall, subject to the provisions of this Part, deposit with the Commission and keep deposited in respect of each stockbroker belonging to that exchange-
(a) a sum of $25,000 payable in cash; and
(b) a guarantee, in such form and complying with such con- ditions as may be prescribed by rules, given by a licensed bank guaranteeing the payment to the compensation fund, on the demand of the Commission, of the sum of $25,000.
(2) The amount and, subject to subsection (3), the guarantee referred to in subsection (1) shall be deposited-
(a) in respect of every stockbroker who is a member of a stock exchange at the date of commencement of this Part. not later than one month after that date; and
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(b) in respect of every stockbroker who is admitted as a member of a stock exchange after the commencement of this Part, not later than one month after the date on which he is admitted to membership of the exchange.
(3) The Commission may, if it is satisfied that a stock ex- change is operating a system whereby the obligations of any stock- broker belonging to the exchange to any other stockbroker belonging to that exchange will be met or substantially met in the event of his failing to fulfil those obligations or any of them. exempt the exchange from compliance with depositing the guarantce required under subsection (IX6).
(4) Any amount due under this section may be sued for and recovered by the Commission as a debt in any court of competent jurisdiction.
bank
105. (1) The Commission may invest any money which forms Balance of part of the compensation fund and is not immediately required sums in for any other purposes provided for by this Part either- account
(a) on fixed deposit with a licensed bank; or
(b)
in securities in which trusless are authorized by law to invest trust funds.
(2) As soon as practicable after the end of each financial year, the Commission sball ascertain the total amount of interest (if any) derived from the investment of money under subsection (1) in respect of that financial year and shall then, after deducting an appropriate amount to meet the expenses incurred or involved in the administration of the compensation fund, apportion the balance of the interest between the contributing stock exchanges in proportion to the amounts that they have contributed to the fund and pay to each exchange its portion of that balance.
may be invested.
in certain
106. (1) Where a stock exchange has deposited a sum of Repayment money or a guarantee with the Commission under section 104 in pf deposite respect of a stockbroker and that stockbroker dies or otherwise cases. ccases to be a member of the stock exchange, the Commission shall, unless the money or guarantee is required to satisfy any claims or liabilities arising before the stockbroker died or other- wise ceased to be a member of the exchange, within 6 months after the death of the stockbroker or his ceasing to be a member of the exchange, deliver to the exchange the sum or guarantee deposited in respect of the stockbroker.