XN000022-1973-12-12 — Page 2

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Wednesday, December 12, 1973

SECURITIES BILL INTRODUCED IN LEGISLATIVE COUNCIL

Financial Secretary Outlines Proposed Amendments

The government intends to defer implementation of that section of

the Securitios Bill dealing with "insider trading" pending the publication

and assessment of United Kingdon legislation on the same subject.

Announcing this today, the Financial Secretary, the Hon. C.P.

Haddon-Cave, told the Legislative Council that the term "insider trading"

was fraught with difficulty as regards adequate definition of what it

includes and in suggesting means of averting it.

Thus there is a danger that, in attempting to deal with the

problem, the definition will be cast so wide as to hamper legitimate

activitios without preventing the objectionable abuse," he said. **This

obviously we must avoid."

The Financial Secretary also gave notice of his intention to

propose a host of other amendments to various sections of the bill at a

later stage.

In a detailed explanation of the bill, Mr. Haddon-Cave emphasised

that it "doos not in any way restrict the rights of responsible participants

in the market.

"Tather, it provides the basic framework which will permit the

securities industry in Hong Kong to evolve rationally, thereby assuming

its rightful place as one of the leading stock markets in the world."

/Since