Employ-
ment of frauduleni
or deceptive devices etc.
Restrictions on Axing.
etc., prices for secur ties.
False OT misleading statements about
securities.
Offences
and penally in relation to sections 135 to 138.
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securities, holds an interest in the securities after the purchase or sale.
(5) A person shall not circulate or disseminate, or authorize or be concerned in the circulation or dissemination of any state- ment or information to the effect that the price of any securitics will or is likely to rise or fall because of the market operations of one or more persons which, to his knowledge, are conducted in contravention of subsection (1).
136. A person shall not, directly or indirectly, in connexion with any transaction with any other person involving the purchase, sale, or exchange of securities-
(a) employ any device. scheme, or artifice to defraud that
other person; or
(6) engage in any act, practice, or course of business which operates as a fraud or deception, or is likely to operate as a fraud or deception, of that other person.
137. A person shall not, either alone or with one or more other persons, effect any series of transactions for the purchase or sale of securities, or the purchase and sale, of any securities for the purpose of pegging or stabilizing the price of securities of that class in contravention of any regulations made for the purposes of this section.
138. A person shall not, directly or indirectly, for the purposes of inducing the sale of the securities of any corporation, make with respect to those securities, or with respect to the operations or the past or future performance of the corporation-
(a) any stalement which is, at the time and in the light of the circumstances in which it is made, false or misleading with respect to any material fact and which he knows or has reasonable ground to believe to be false or mislead- ing: or
(b) any statement which is, by reason of the omission of # material fact, rendered false or misleading and which he knows or has reasonable grounds for knowing is rendered false or misleading by reason of the omission of that fact.
139. Any person who contravenes any of the provisions of section 135, section 136, section 137, or section 138 shall be guilty of an offence and shall be liable on conviction on indick- ment to a fine of $50,000 and to imprisonment for 2 years.
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140. (1) Where a person, through his association with a Insider corporation. has knowledge of specific information relating to the trading. operations or the securities of the corporation and that informa- tion has not been generally made available, whether by public announcement, circular, or otherwise, but, if it had been, might reasonably be expected to have materially affected the market price of the securities of the corporation, he shall not-
(a) deal directly or indirectly in those securities in Hong Kong if by so doing he gains an advantage, whether by making a profit or avoiding a loss, for himself or for another person; or
(b) disclose that information to another person for the pur- pose of enabling that other person to use the informa- tion to deal in Hong Kong directly or indirectly in those securities and thereby gain an advantage, whether by making a profit or avoiding a loss, for himself or for another person.
(2) Where a person, through his association with a corpora- tion, has knowledge of specific information relating to the opera- tions or securities of any other corporation which-
(a) has not been generally made available, whether by public announcement, circular, or otherwise, but, if it had been, might reasonably be expected to have material- ly affected the market price of those securities; and
(6) relates to any transaction (whether executory or anti- cipated involving both of those corporations or involving one of them and the securities of the other.
he shall not deal in those securities in Hong Kong if by so doing he gains an advantage, whether by making a profit or avoiding a loss, for himself or another person, nor shall he disclose that information to another person for the purpose of enabling that other person to use the information to deal in Hong Kong directly or indirectly in those securities and thereby gain an advantage, whether by making a profit or avoiding a loss, for that other person or another.
(3) Where a person obtains, whether directly or indirectly, knowledge of specific information relating to the operations or securities of a corporation from or through a person whom he knows, or has reasonable grounds for believing, to have an association with the corporation and that information has not been generally made available, whether by public announcement, or