XN000022-1973-09-28 — Page 2

Friday, September 28, 1973

HEAVY PENALTIES PROPOSED TO CURB MARKET MALPRACTICES

Basic Ground Rules Set Out To Regulate Trading In Securities

Tougher penalties, including $1 million fines and seven years'

imprisonment, will be introduced to protect investors against phoney

dealings and to curb market malpractices, if proposed new legislation is

accepted.

The measures are contained in the Securities Bill 1973 and in

the Protection of Investors Bill, both of which are published in today's

gazette for general information.

The Securities Bill sets out a general framework of basic principles

within which all aspects of securities will be regulated, and introduces

fines of $50,000 and prison sentences of two years against offences

Control

dodging

relating to market rigging, price manipulation and false markets.

Based largely on the recommendations of the Companies Law Revision

Committee's first report, published in 1971, the Securities Bill provides,

among others, for:

*The establishment of a Securities Commission, (to replace the present Securities Advisory Council), and the post of Commissioner for Securities with statutory powers to deal with problems arising from dealing in securities, whether on a stock market or outside. The Commission

will have authority to lay down requirements to be followed by the stock exchanges.

/*The setting .............