21
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WEDNESDAY, JUNE 27, 1990
AND
"THE DUTY IMPOSED UPON THE STOCK EXCHANGE IS UNREMUNERATED SIMILAR IN NATURE то FUNCTIONS CARRIED OUT BY THOSE REGULATORY BODIES."
"SECONDLY, THE UNDERLYING PURPOSE OF THE NOTIFICATION SYSTEM IS TO ENSURE THE PROMPT RELEASE OF PRICE-SENSITIVE INFORMATION TO THE MARKET. THIS OBJECTIVE WOULD BE DEFEATED IF THE STOCK EXCHANGE WERE NOT PROTECTED IN THE WAY PROPOSED.
OUT THE MOST DAMAGES.
"THE STOCK EXCHANGE WOULD BE OBLIGED TO CARRY CAREFUL CHECKS TO MINIMISE THE RISK OF BEING SUED FOR WOULD BE VERY TIME-CONSUMING AND LEAD TO DELAYS IN THE PUBLICATION INFORMATION RECEIVED," HE SAID.
THIS OF
UNDER THE TERMS OF THE PROPOSED IMMUNITY, MR NENDICK POINTED OUT THAT THE STOCK EXCHANGE WAS, HOWEVER, REQUIRED TO ACT IN GOOD FAITH.
ACCORDINGLY, IT MUST TAKE ALL REASONABLE STEPS TO VERIFY THE INFORMATION RECEIVED AND TO ENSURE THAT IT WAS CORRECTLY PUBLISHED.
"THE STOCK EXCHANGE IS REQUIRED UNDER THE ORDINANCE TO PUBLISH THE INFORMATION IN SUCH MANNER AS THE SECURITIES AND FUTURES COMMISSION MAY APPROVE.
H
"THE COMMISSION IS SATISFIED THAT NECESSARY CHECKS ARE IN PLACE AND WILL BE MONITORING THE OPERATION OF THESE ARRANGEMENTS, MR NENDICK SAID.
2.
AS FOR THE COMMENCEMENT DATE OF THE PRINCIPAL ORDINANCE, MR NENDICK SAID WHEN THE BILL WAS INTRODUCED INTO THE COUNCIL ON MAY IT HAD BEEN STATED THAT THE INTENTION WAS TO BRING THE PRINCIPAL ORDINANCE INTO FORCE ON JULY 1 THIS YEAR.
INTENTION
HAVING FURTHER CONSIDERED THE ISSUE, IT IS NOW OUR то DELAY BRINGING THE ORDINANCE INTO FORCE UNTIL LATER IN THE YEAR WHEN APPROPRIATE MEASURES ARE IN PLACE TO ENSURE THAT THE DISCLOSURE REQUIREMENTS WILL ALSO BE APPLICABLE TO OVERSEAS INCORPORATED COMPANIES LISTED ON THE STOCK EXCHANGE, HE SAID.
OTHER
SPEAKING LATER AT THE COMMITTEE STAGE OF THE BILL, THE ACTING FINANCIAL SECRETARY MOVED VARIOUS AMENDMENTS IN RESPECT OF THE POINTS RAISED BY THE HON STEPHEN CHEONG, THE CONVENER OF THE GROUP.
AD HOC
MR NENDICK EXPLAINED THAT AS THE MAIN PURPOSE OF THE BILL WAS TO IMPROVE THE NOTIFICATION PROCEDURES UNDER THE PRINCIPAL ORDINANCE,
ORDER TO RECOGNISE MODERN INFORMATION TECHNOLOGY AND TO IN
EASE THE BURDEN OF REPORTING UPON PERSONS, ESPECIALLY OVERSEAS RESIDENTS,
14 WAS AMENDED TO CLAUSE
AN ADD FACSIMILE TRANSMISSION AS METHOD OF NOTIFICATION.
ACCEPTED
THE
THR
IN
"AT THE SAME TIME, CLAUSE 15(B) IS AMENDED TO GIVE NECESSARY FLEXIBILITY IF, IN FUTURE, PRACTICAL EXPERIENCE OF OPERATION
PROVISIONS OF THE ORDINANCE REVEALS THAT SUPPLEMENTARY RESPECT OF THE METHODS OF NOTIFICATION ARE NEEDED.
IN ADDITION