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SATURDAY, AUGUST 7, 1976
SECURITIES (AMENDMENT) ORDINANCE PUBLISHED IN GAZETTE
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THE SECURITIES (AMENDMENT) ORDINANCE 1976 PUBLISHED IN YESTERDAY'S GAZETTE CONTAINS AMENDMENTS MAINLY CONCERNED WITH THE CLARIFICATION AND APPLICATION OF THE MAIN ORDINANCE. NONE INVOLVES A CHANGE IN THE BASIC PRINCIPLES OF THIS LEGISLATION.
AND
AMONG THE VARIOUS AMENDMENTS, ONE IS MADE TO EXCLUDE FROM THE DEFINITION OF +DEALING IN SECURITIES+ AGREEMENTS MADE WHEREBY SECURITIES ARE TGANSFERRED OR DEPOSITED WITH A PERSON AS COLLATERAL FOR A LOAN.
THE DEFINITION OF 'STOCKBROKING BUSINESS' UNDER PART X IS NOW AMENDED TO INCLUDE ANY BUSINESS CONNECTED WITH SECURITIES CONDUCTED BY COMPANIES OPERATED BY OR UNDER THE CONTROL OF A STOCKBROKER.
THIS WILL ENABLE RECOURSE TO BE MADE TO THE STOCK EXCHANGES COMPENSATION FUND ESTABLISHED UNDER PART X OF THE ORDINANCE IN THE EVENT OF A DEFAULT BY ANY SUCH COMPANY RUN BY A STOCKBROKER.
SECTION 30 AMENDS SECTION 123 OF THE MAIN ORDINANCE RELATING TO THE COMMISSIONER'S POWERS TO REQUIRE THE DISCLOSURE OF INFORMATION.
THE PREVIOUS SECTION 123 COVERED THE NAMES OF PERSONS FROM, OR TO, OR THROUGH WHOM, OR ON WHOSE BEHALF, SECURITIES ARE BOUGHT OR SOLD, AND TO THE NATURE OF INSTRUCTIONS GIVEN IN RESPECT OF A PURCHASE OR A SALE.
THE PURPOSE OF THE AMENDMENT IS TO MAKE IT CLEAR, IN ACCORDANCE WITH THE ORIGINAL INTENTION OF THE PRINCIPAL ORDINANCE, THAT NOMINEE COMPANIES ARE OBLIGED TO DISCLOSE SUCH INFORMATION TO THE COMMISSIONER, EVEN THOUGH THEIR INSTRUCTIONS HAVE TAKEN THE FORM OF A REQUEST TO DELIVER SHARES TO A REGISTERED DEALER. THE CLIENT HIMSELF, OR A THIRD PARTY RATHER THAN AN EXPLICIT INSTRUCTION TO SELL.
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