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Wednesday, January 9, 1974

SECURIFIES BILL WINS RESERVED SUPPORT

Unofficial Members of the Legislative Council spoke out in support

of the Securities Bill today but made it clear that a number of amendments

were necessary before it could be passed into law,

While they did not accept parts of the bill in its present form,

the general feeling was that with suitable amendments the draft legislation

would be an invaluable boon to orderly market trading and for the protection

of investors as well as strengthening Hong Kong's position as a financial

centre.

Some 230 amendments to the bill have been suggested, about half

of which are acceptable to the government.

Speaking on behalf of his colleagues, the Senior Unofficial Member,

the Hon. P.C. Woo, said that the unofficial members did accept the need for

legislation along the general lines of the bill.

Such legislation, he added, was entirely necessary to ensure

adequate control of stock exchange transactions, to avoid malpractices and

to put the whole business of transactions in securities on a thoroughly sound

framework."

But although it was important to get the legislation on the statute

book, "it is equally important to allow adequate time to ensure that the

amendments are practicable and workable by those concerned."

Referring to the setting up of a compensation fund as provided in

the prosent bill, Mr. Woo said the amended proposal was that the cash fund

should be $25 million with a further $25 million in bank guarantees.

"Although this