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FRIDAY, JUNE 25, 1993
FOR OVERSEAS INCORPORATED INSTITUTIONS, THE AMENDMENT WOULD REQUIRE THEM ΤΟ SUBMIT THEIR AUDITED FINANCIAL STATEMENTS ΤΟ THE MONETARY AUTHORITY WITHIN SIX MONTHS OF THEIR FINANCIAL YEAR END IN ORDER TO OBTAIN AN EXEMPTION FROM THE STATUTORY AUDIT REQUIREMENTS UNDER SECTION 59 OF THE BANKING ORDINANCE.
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THE
THIS IS ALREADY IMPLIED UNDER THE PRESENT LEGISLATION. DIFFERENT TIME FRAME RECOGNISES THE DIFFICULTY OF ENFORCING LEGISLATION IN HONG KONG ON AN INSTITUTION WHOSE MAIN BUSINESS OPERATIONS ARE IN A DIFFERENT JURISDICTION.
USED IN ENGLISH
THE SPOKESMAN SAID THE REQUIREMENT ON THE LANGUAGE PUBLISHING THE ACCOUNTS WAS ALSO CLARIFIED SO THAT THE LANGUAGE WAS TO BE USED IN THE ENGLISH NEWSPAPER, AND THE CHINESE LANGUAGE IN A CHINESE NEWSPAPER.
TURNING TO THE HONG KONG MONETARY AUTHORITY'S PLANS ΤΟ INTRODUCE A CENTRAL CUSTODY SYSTEM, HE SAID AMENDMENTS TO A NUMBER OF ORDINANCES WERE REQUIRED TO GIVE RECOGNITION то THE RIGHTS AND INTERESTS IN SPECIFIED DEBT INSTRUMENTS IN PAPERLESS FORM.
AUTHORITY
UNDER THE PROPOSED SYSTEM, THE HONG KONG MONETARY WILL ACT AS THE INSTRUMENTS, SUCH FLOATING RATE NOTES, BORROWERS.
CENTRAL CUSTODIAN AND CLEARING AGENT FOR DEBT AS BONDS, CERTIFICATES OF DEPOSITS, FIXED AND AND COMMERCIAL PAPERS, ISSUED BY PRIVATE SECTOR
THE SPOKESMAN SAID UNDER THE PROPOSED SCHEME, THE ISSUER OF DEBT INSTRUMENTS WOULD ISSUE ONE GLOBAL INSTRUMENT FOR ANY ONE
ISSUE, WHICH WOULD BE HELD AS BEARER BY THE HONG KONG MONETARY AUTHORITY.
THE AUTHORITY, ON BEHALF OF ACCEPTABLE DEALERS, WOULD RECORD ON ITS COMPUTER SYSTEM INTERESTS IN THOSE GLOBAL INSTRUMENTS AND FACILITATE THE TRANSFER OF SUCH INTERESTS UPON RECEIPT OF INSTRUCTIONS.
"THIS WILL SPEED UP THE SETTLEMENT SETTLEMENT RISK, THE SPOKESMAN SAID.
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**IT IS HOPED THAT SUCH A SYSTEM WILL DEVELOPMENT OF HONG KONG'S CAPITAL MARKETS. WELCOMED BY MARKET PARTICIPANTS."
PROCESS AND REDUCE
FURTHER STIMULATE THE IT HAS BEEN WIDELY
THE SPOKESMAN SAID A NUMBER OF OTHER CHANGES TO THE BANKING ORDINANCE WERE BEING SOUGHT TO IMPROVE THE WORKING OF THE ORDINANCE AND TO CLARIFY CERTAIN PROVISIONS, INCLUDING THOSE RELATING TO LOCAL REPRESENTATIVE OFFICES.
HE SAID THE MAIN PROVISIONS THE BANKING ADVISORY COMMITTEE ADVISORY COMMITTEE AS WELL AS THE
IN THE BILL HAD BEEN DISCUSSED WITH AND THE DEPOSIT-TAKING COMPANIES INDUSTRY ASSOCIATIONS.
THE BILL IS SCHEDULED FOR INTRODUCTION INTO THE LEGISLATIVE COUNCIL ON JULY 7.
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