XN000022-1973-02-23 — Page 2

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Friday, February 23, 1973

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INTERIM MEASURE TO CURB

PROLIFERATION OF STOCK EXCHANGES

New Bill In Legco Next Week

A bill, designed as an interim measure to curb the proliferation

of stock exchanges in Hong Kong, is to be introduced into the Legislative Council next Wednesday.

The bill will have the effect of preventing the establishment of any stock exchange other than those which have already been recognised under the Companies Ordinance.

If the bill is passed, it will be an offence for any person to establish or operate a stock market unless it is the stock market of a recognized stock exchange.

This offence is punishable with a fine of up to $200,000 and, in the case of a continuing offence, a further fine not exceeding $5,000 a day.

The bill will also make it an offence, punishable by a fine not exceeding $20,000 for a dealer in securities to transact a dealing in securities at any stock market other than one being operated by or with the authority of a recognized stock exchange.

In addition, the bill will empower a magistrate to order the closure of premises in which such an offence is alleged to have been committed.

If any person is convicted of such an offence, the court will have the power to order that the premises be locked and secured for a period of

one to three months.

Any person who enters the premises in contravention of the order without authority is liable to a fine of up to $20,000.

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