Antendment al section 13.
Ampodrseat of necalon 19.
3. Section 13 of the principal Ordinance is amended by inserting after paragraph (6) the following new paragraph-
"ba) to report to the Financial Secretary the occurrence of any dealing in relation to securites which it believes or suspects to be an insider dealing within the meaning of section 14ÎB". Section 19(2) of the principal Ordinance is amended by adding after "in the subsection" the following-
4
"or from producing any documcot or disclosing any matter or thing as aforesaid to the Tribunal established by section 1410". Section 123 of the principal Ordinance is repealed and replaced replacement of by the following action-
Renex) and
section 123.
Amendment of
Repeal of
section 140,
tapertion of
5.
"Power of CommlsdonER to lovethgate Ganadons.
Kec. 29.)
123, (1) The Commissioner may require-
(a) a registered dealer;
(b) an exempt dealer;
(c) a person whom the Commissioner reasonably be. lieves to have acquired or disposed of securities through a nomince for him of a trustce on bis behalf or to be or have been the real owner of securities held by a namines or trustee, (d) a nominee or trustee referred to in paragraph (c) (including an authorized trustee company registered under Part VII] of the Trustee Ordinance);
(e) an agent of a person referred to paragraphs (c)
and (d).
to disclose to him in relation to any acquisition, disposition or holding of securities the name (including any aliases), address and occupation of the person from or lo or through whom or on whose behalf the securities were acquired or disposed of or were or are held, the quantity of securities so acquired, disposed of or held, and the actual instructions given to or by that person in respect thereof.
(2) A person who
(e) without lawful excuse fails to disclose to the Com- missioner under subsection (1) all information referred to therein which he has or can obtain; or (6) knowingly furnishes to the Commissioner there- under information that is false or misleading in a material particular,
commits an offence and is liable on conviction to a line of $5,000 and to imprisonment for 3 months.".
6. Section 124 of the principal Ordinance is amended by inserting after "dealing in securities" the following-
For that insider dealing within the meaning of section 14!B has taken place".
7. Section 140 of the principal Ordinance is repealed.
8. The principal Ordinance is amended by inserting after Part XII
new Pan XILA the following new Part-
Applicarica Al
LEJE T'APE
"PART XILA
Insider DEALING
141A. (1) This Fart applies to the securities of a cor- poration only if they are listed on a stock exchange or have
When Imider dealom vide place.
Culpability at Unsider
been so listed at any time within five years immediately preceding any dealing in relation to those securities within the meaning of section 141B(1).
(2) No transaction shall be void or voidable by reason only that it is an Insider dealing within the meaning of this Part.
Definition of Insider dealing
1418. (1) Insider dealing in relation to the securities of a corporation takes place and, pursuant to section 141C, may be culpable for the purposes of this Part-
(0) when a dealing in the securities is made, procured or occasioned by a person connected with that cor- poration who is in possession of relevant information concerning the securities,
(5) when relevant information concerning the securities is disclosed by a person connected with that cor- poration, directly or indirectly, to another person and the fine-masntioned person knows or has reasonable grounds for believing that the other person will make use of the information for the purpose of dealing, or procuring another to deal. in those securities.
(2) A dealing in the securities of a corporation is occasioned by a person connected with that corporation for the purposes of subsection (1)}{o) when a person who bas obtained relevant information in the circumstances described in subsection (1X2) actually makes use of that information for the purpose of dealing, or procuring another to deal in those securities.
DIC (1) A person who enters into a transaction which is an insider dealing within section 141B(1)(a) is not culpable for the purposes of this Part-
(a) if his sole purpose in entering into the transaction is the acquisition of qualification shares required by him as a director or intcading director of any corporation; or
(b) if he enters into the transaction-
(i) in the bona fide performance of an under- writing agreement with respect to the securities to which the transaction relates; or
(i) in the bona fide exercise of his functions as a personal representative, liquidator, receiver or trustee in bankruptcy.
(2) A corporation which enters into a transaction which
is an insider dealing within section 141B(1)Xa) is not culpable for the purposes of this Part if, although relevant informa- tion concerning the securities is in the possession of a director or employee of the corporation—
(a) the decision to enter into the transaction was taken on its behalf by a person other than that director or employee; and
(b) arrangements were then in existence for securing that the information was not communicated to that person and that no advice with respect to the transaction was given to him by a person in posses- sion of the information; and
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