1973-HKRS28-16-21_Part02 — Page 43

Recognition of stock exchanges.

UCum. 12,5

(Cap. 12.)

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"recognized stock exchange" means a body of persons, corporate or unincorporate, in respect of which an order made or deemed to have been made under section 3(1) declaring the body to be a recognized stock exchange is for the time being in force:

"'securities" means any debentures. loan-stock, bonds, stock. funds, notes, or shares of a body whether incorporated or unincorporated, or of any government or local government authority; and includes -

(a) rights or interests (whather described as units or other-

wise) in respect of any of the foregoing.

(6)

any certificates of interest or participation is, temporary or interim certificates for, receipts for, or warrants or rights to subscribe to or purchase any of the foregoing; or (e) any instruments commonly known as securities;

"stock market” means a market, exchange, or other place at which securities are regularly offered for sale, purchase, or exchange.

3. (1) The Governor in Council may, by order published in the Gazette, declare any incorporated or unincorporated body of persons the objects of which include the operation of a stock market or stock exchange, or which intends to carry on the business of operating a stock market, to be a recognized stock exchange for the purposes of this Ordinance and the Companies Ordinance.

(2) Where, immediately before the 2nd day of March 1973. an order made under section 2A(1) of the Companies Ordinance was in force in respect of any body of persons, that order shall, subject to the provisions of this section, be deemed to be an order made under subsection (1) of this section and shall con- tinue in force in like manner as if it had been made under that subsection.

(3) The Governor in Council may, at any time by notice in writing, require any body of persons in respect of which an order has been or is deemed to have been made, or is proposed to be made, under subsection (1) to comply with such conditions relating to membership of the body, its rules or regulations, and the conduct of the stock market operated or proposed to be operated by it as he thinks fit, and, in particular, may prohibit any such body from operating a stock market at any premises other than those approved by him or by the Financial Secretary.

(4) The Governor in Council may at any time, after giving a recognized stock exchange not less than 14 days' notice în

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writing of his intention to do so, revoke an order made or deemed to be made under subsection (1) on the ground that the stock exchange is not complying with any condition or prohibition imposed on it under subsection (3) or that it is otherwise in the public interest to do so.

(5) An order made or deemed to be made under subsection (1) shall continue in force for such period (if any) as may be specified in the order unless sooner revoked under subsection (4).

4.

(1) No person shall-

(a) establish or operate a stock market which is not the

stock market of a recognized stock exchange; or

(b) assist in the operation of a stock market which, to his knowledge, is not the stock market of a recognized stock exchange.

(3) Any person who contravenes subsection (1) shall be guilty of an offence, and shall be liable on conviction to a fine of $500,000 and, in the case of a continuing offence, to a further fine of $50,000 for each day during which the offence continues.

5. (1) Any dealer who transacts a dealing in securities at or through a stock market which is not the stock market of a recognized stock exchange shall be guilty of an offence, and shall be liable on conviction to a fine of $50,000 in respect of each such dealing

(2) In any proceedings in respect of an offence against subsection (1), it is a defence for the accused to prove that he did not know and had no reason to believe that the place where the dealing was transacted was not the stock market of a recognized stock exchange.

6. (1) Any police officer not below the rank of superin- tendent may, without warrant. with the assistance of such other police officers as may be necessary-

(a) enter and search any premises in which he reasonably suspects that an offence against section 4 or section 5 is being or has been committed; and

(6) remove and detain any equipment, books, records, accounts, or other documents which he has reason to believe are related to the commission of the offence.

(2) Any such police officer may, in the exercise of the powers conferred on him under subsection (1)

(a) break open any outer or inner door of any premises which he is empowered to enter under that subsection;

Restriction on establishment of stock exchanges.

Persons not

to deal in securities in a stock market that is not a stock exchange.

Power of entry

and search, elc,