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FRIDAY, JULY 18, 1980
THE SPOKESMAN SAID THAT WHILE THE PARTICIPATION OF OVERSEAS BROKERS IN THE STOCK MARKET WAS TO BE WELCOMED, LOCAL BROKERS WERE ENTITLED TO A MEASURE OF PROTECTION AGAINST OVERSEAS COMPETITION.
THE BILL REQUIRES THAT TO QUALIFY FOR MEMBERSHIP OR ASSOCIATE MEMBERSHIP OF THE EXCHANGE COMPANY, AN APPLICANT WILL HAVE TO BE OF GOOD CHARACTER AND INTEGRITY.
ADDITIONALLY, EACH APPLICANT MUST DEMONSTRATE THAT HE IS OF SOUND FINANCIAL STANDING.
SPECIFICALLY, HE MUST SHOW THAT HE WILL BE ABLE, WHEN THE UNIFIED EXCHANGE COMMENCES OPERATION, TO MEET THE CAPITAL REQUIREMENT SET OUT IN THE BILL, UNDER WHICH EACH MEMBER OR ASSOCIATE MEMBER MUST MAINTAIN IN HIS STOCKBROKING BUSINESS A NET CAPITAL THAT IS, EXCESS OF APPROVED ASSETS OVER RANKING LIABILITIES, OF AT LEAST $1 MILLION.
TO AVOID POSSIBLE SPECULATION, SHARES IN THE COMPANY WILL NOT BE TRANSFERABLE FOR A PERIOD OF THREE YEARS.
THIS PROHIBITION MAY BE RELAXED IN CERTAIN CIRCUMSTANCES, SUCH AS DEATH, BANKRUPTCY OR EXPULSION.
EVEN THEN, ANY PROFIT ON THE SALE OF THE SHARE WILL BE PAYABLE TO THE COMPANY.
AFTER THE THREE-YEAR PERIOD, SHARES MAY BE TRANSFERRED TO APPROVED PURCHASERS, WITH THE VENDOR RECEIVING THE FULL PROCEEDS OF SALE.
THE SPOKESMAN SAID: THE BILL RECOGNISES THAT SOME MEMBERS AND ASSOCIATE MEMBERS MAY WISH TO ENTER INTO DEEDS OF TRUST OR OTHER ARRANGEMENTS CONCERNING THE FINANCING, PLEDGING, OR USE BY OTHER PERSONS, OF THEIR MEMBERSHIPS AND ASSOCIATE MEMBERSHIPS.
+TO PREVENT SUCH ARRANGEMENTS BEING USED AS A MEANS OF AVOIDING THE RESTRICTIONS COVERING ADMISSION TO THE EXCHANGE, IT WILL BE PROVIDED IN THE ARTICLES THAT SUCH ARRANGEMENTS CAN BE ENTERED INTO ONLY WITH INDIVIDUALS WHO MEET ALL THE CRITERIA FOR ADMISSION, APART FROM THE REQUIREMENT TO BE A MEMBER OR OVERSEAS MEMBER OF AN EXISTING EXCHANGE.+
ANY DEED OF TRUST OR SIMILAR ARRANGEMENT WILL NEED THE PRIOR APPROVAL OF THE COMMITTEE AND THE DOCUMENTATION RELATING TO IT WILL HAVE TO BE LODGED WITH THE COMMITTEE AND THE COMMISSIONER FOR SECURITIES WITHIN ONE MONTH OF THE ARRANGEMENT BEING MADE.
THE SPOKESMAN SAID THE EXCHANGE COMPANY WILL DRAW UP BOARD TRADING RULES AND BY-LAWS, TOGETHER WITH ITS RULES AND REGULATIONS AND ITS LISTING RULES, ALL OF WHICH MUST BE APPROVED BY THE SECURITIES COMMISSION.
+THE UNIFIED EXCHANGE'S LISTING RULES WILL BE MORE COMPREHENSIVE AND RIGOROUS THAN THOSE OF THE EXISTING EXCHANGES,+ HE SAID.
/THE SPOKESMAN