XN000022-1973-01-03 — Page 3

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Wednesday, January 3, 1973

"But, perhaps partly as a result of this very high level of activity,

various undesirable practices have grown up. These relate for example, to the

frequent use of placements of securities on the exchanges instead of public

offers, listing procedures, undue influencing of prices and non-recording of

transactions.

"None of these practices is in the general interest of the investing

public and cannot, therefore, be viewed with equanimity,"

In relation to the Companies (Amendment) Bill 1972, he continued,

further legislation arising from the recommendations of the Companies Law

Revision Committee was now being drafted.

Supervisory Body

One of the Bills involved, the Securities Bill, would cover all

aspects of trading securities and would provide for the establishment of a

supervisory body, to be called the Securities Council, and for the creation

of the post of Commissioner for Securities.

The Securities Council's main concern would be to supervise the

implementation of all parts of the Securities Bill.

"This will include the creation of a Federation of Stock Exchanges,

the registration of dealers and investment advisers, trading in securities

outside the stock exchanges, the prevention of false markets, and the keeping

and auditing of accounts.

"The Council will also be empowered to take up with the stock exchanges,

underwriters, financial institutions acting as issuing houses and other organi-

sations and persons involved in trading in securities, any matters which, in its

view, appear to give rise to concern and which call for authoritiative rulings.

In addition,