THURSDAY, JUNE 17, 1993
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PROTECTION OF INVESTORS (AMENDMENT) BILL 1993
THE PROTECTION OF INVESTORS (AMENDMENT) BILL 1993, WHICH SEEKS TO CLARIFY THE SCOPE OF CERTAIN PROVISIONS OF THE PROTECTION OF INVESTORS ORDINANCE, WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON JUNE 30.
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"THE ORDINANCE AIMS AT PROVIDING FOR THE PROTECTION OF INVESTORS IN SECURITIES AND OTHER FORMS OF PROPERTY, THE SECRETARY FOR FINANCIAL SERVICES, MR MICHAEL CARTLAND, SAID TODAY (THURSDAY).
"SOME OF THE PROPOSED AMENDMENTS REFLECT SUGGESTIONS MADE BY THE LAW SOCIETY AND THE HONG KONG CAPITAL MARKETS ASSOCIATION FOR FURTHER IMPROVEMENTS TO THE ORDINANCE, HE ADDED.
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THE MAJOR PROPOSALS CONCERN THE EXEMPTION FROM VARIOUS PROHIBITIONS OF ADVERTISEMENTS AND DOCUMENTS RELATING TO THE ISSUE CAPITAL MARKET INSTRUMENTS, INCLUDING:
* NET ASSET RATHER THAN PAID-UP SHARE CAPITAL WILL BE USED AS A MORE MEANINGFUL MEASURE OF THE NET WORTH OF A CORPORATION ISSUING A DEBT MARKET INSTRUMENT. THE LEVEL WILL BF INCREASED FROM HK$75 MILLION TO HK$100 MILLION SO THAT ONLY MORE SUBSTANTIAL CORPORATE ISSUERS WOULD BE ELIGIBLE FOR
EXEMPTION;
ISSURD BY
EXEMPTION WILL BE EXTENDED TO AN INSTRUMENT CORPORATION WHICH COMPLIES WITH THE NET ASSET REQUIREMENT PROVIDED THE INSTRUMENT IS GUARANTEED BY AN AUTHORISED INSTITUTION, A MULTILATERAL AGENCY OR AN EXEMPTED BODY (EXCEPT LISTED CORPORATIONS NOT MEETING THE ASSET REQUIREMENT OR WHOLLY OWNED SUBSIDIARIES OF A LISTED CORPORATION);
EXEMPTION WILL BE EXTENDED TO INSTRUMENTS ISSUED BY A WHOLLY OWNED SUBSIDIARY AND GUARANTEED BY ITS LISTED PARENT CORPORATION PROVIDED THAT THAT CORPORATION COMPLIES WITH THE NET ASSET REQUIREMENT;
THE SECURITIES AND FUTURES COMMISSION (SFC) WILL BE ALLOWED TO TAKE INTO ACCOUNT FEATURES OF A DEBT MARKET INSTRUMENT IN DECIDING ON APPLICATIONS FOR AUTHORISATION OF ANY ADVERTISEMENT, INVITATION OR DOCUMENT RELATED THERETO; AND
THE SFC WILL BE EMPOWERED TO REFUSE ΤΟ AUTHORISE ANY ADVERTISEMENT, INVITATION OR DOCUMENT RELATING TO SECURITIES, PROPERTY OTHER THAN SECURITIES, OR INVESTMENT ARRANGEMENTS IF IT IS SATISFIED THAT THE MATTER IS NOT IN THE INTERESTS OF THE INVESTING PUBLIC.
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APART FROM THESE CLARIFICATIONS OF THE SCOPE OF THE ORDINANCE, IS PROPOSED TO ADD A NEW CATEGORY OF EXEMPTION FOR ADVERTISEMENT, INVITATION OR DOCUMENT RELATING TO ISSUES OF SECURITIES, INCLUDING DEBT SECURITIES AND WARRANTS, LISTED ON THE STOCK EXCHANGE OF HONG KONG LTD (SEHK).
/"SUCH ISSUES