1974-HKRS28-16-22_Part01 — Page 34

Functions

of Com- mission.

115 of 1974)

Rules.

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13. The Commission shall have the following functions-

(a)

to advise the Financial Secretary on all matters relating to securities:

(b) without prejudice to any duties imposed or powers conferred on any other person in regard to the enforce- ment of the law relating to securities, to be responsible for ensuring that the provisions of this Ordinance and the Protection of Investors Ordinance 1974, and the provisions of any other Ordinance so far as they relate to securities, are complied with;

(c) to be responsible for supervising the activities of

the Federation;

(d) to take all reasonable steps to safeguard the interests of persons who invest or propose to invest in securities;

(e)

to promote and encourage proper conduct amongst members of the Federation;

(f) to suppress illegal, dishonourable, and improper practices in relation to dealings in securities, whether on stock exchanges or otherwise;

(g) to promote and maintain the integrity of stockbrokers and other persons dealing in securities, and encourage the promulgation by stockbrokers and other dealers in securities of balanced and informed advice to their clients and to the public generally;

(A) to consider and suggest reforms of the law relating to

securities.

14. (1) The Commission may, after consultation with the Federation, make rules in respect of all or any of the following

TOMALI CESTS-

(a) the listing of securities on stock exchanges, and in

particular-

(i) prescribing the requirements to be met before securities may be listed on exchanges;

(ii) prescribing the procedure for dealing with applica- tions for the listing of securities at exchanges; and

(ii) providing for the cancellation of the listing of any specified securities at any stock exchange if the Com- mission's requirements for listing, or the requirements of the undertaking referred to in paragraph (f), are not complied with or the Commission considers that such

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action is necessary to maintain an orderly market in Hong Kong:

(b) the conditions subject to which, and the circumstances in which, any stock exchange may suspend dealings in securities;

(c) the procedure for and the method of dotment of any securities arising out of an offer made to members of the public in respect of those securities;

(d) the qualifications for membership of stock exchanges and the maximum number of persons that may be admitted to membership of any stock exchange:

(e) the type of business that may be carried on at stock

exchanges;

() requiring companies the securities of which are listed or accepted for listing on a stock exchange to enter into an undertaking in the prescribed form with the exchange to provide such information at such times as may be specified, and to carry out such duties in relation to its securities as may be imposed, in the undertaking: (g) anything which is to be or may be prescribed by rules.

(2) No rules made under this section shall have effect unlil they have been approved by the Governor and published in the Gazette.

(3) Nothing in this section prevents the Federation or any stock exchange from making rules on any matter mentioned in subsection (1) if those rules have been approved by the Commission and are not repugnant to any rule made by the Commission under subsection (1).

15. (1) The Commission shall have all such powers as may be Powers of necessary to enable it to carry out its functions, and in particular Commis-

sion. may

(a) refer complaints relating to the activities of stock exchanges to the Disciplinary Committee and, if it considers necessary, hold preliminary investigations into any such complaints;

(b) acquire, hold, and dispose of all forms of movable and

immovable property;

(c) authorize mutual fund corporations and unit trusts for

the purposes of this Ordinance.