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Thursday, October 6, 1977
Background
Section 140 of the Securities Ordinance (passed in 1974) made
insider dealing a criminal offence, carrying a penalty of a $50,000 fine
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and two years' imprisonment.
This section was never brought into effect, however, as at that
time a new companies bill was under consideration in the United Kingdom
which contained provisions for covering insider dealing, and the Hong Kong
authorities wished to profit from U.K. experience before effecting
legislation in Hong Kong.
In the event, the Conservative Government (whose bill it was)
lost the election and the bill automatically lapsed.
The Labour Government subsequently enacted a companies bill,
but it contained no provisions relating to insider dealing. It is understood
that a draft companies bill, including provisions in respect of insider
dealing, is shortly to be published.
Ordinance.
It is proposed to repeal section 140 of the 1974 Securities
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