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Wednesday, December 12, 1973
SECURITIES BILL INTRODUCED IN LEGISLATIVE COUNCIL
Financial Secretary Outlines Proposed Amendments
The government intends to defer implementation of that section of
the Securitios Bill dealing with "insider trading" pending the publication
and assessment of United Kingdon legislation on the same subject.
Announcing this today, the Financial Secretary, the Hon. C.P.
Haddon-Cave, told the Legislative Council that the term "insider trading"
was fraught with difficulty as regards adequate definition of what it
includes and in suggesting means of averting it.
Thus there is a danger that, in attempting to deal with the
problem, the definition will be cast so wide as to hamper legitimate
activitios without preventing the objectionable abuse," he said. **This
obviously we must avoid."
The Financial Secretary also gave notice of his intention to
propose a host of other amendments to various sections of the bill at a
later stage.
In a detailed explanation of the bill, Mr. Haddon-Cave emphasised
that it "doos not in any way restrict the rights of responsible participants
in the market.
"Tather, it provides the basic framework which will permit the
securities industry in Hong Kong to evolve rationally, thereby assuming
its rightful place as one of the leading stock markets in the world."
/Since