PODNESDAY, JANUARY 25, 1978
AS REGARDS NON-REPORTED DEALS EY STOCK BROKERS IN CONTRAVENTION OF THEIR OWN EXCHANGE RULES, MR. HADDON-CAVE SAID THE COMMISSIONER FOR SECURITIES HAD ALREADY TAKEN STEPS TO ENSURE COMPLIANCE WITH THE RULES OF THE VARIOUS EXCHANGES REGARDING THE REPORTING OF THESE SO CALLED CURBSIDE DEALS.
ON DEALINGS IN HONG KONG SHARES LISTED AND/OR TRADED ON LONDON STOCK EXCHANGE, HE SAID AS THE JOBBERS AND BROKERS INVOLVED IN THESE TRANSACTIONS WERE NOT SUBJECT EITHER TO THE RULES OF A HONG KONG EXCHANGE OR TO THE OBLIGATIONS IMPOSED ON DEALERS BY THE SECURITIES ORDINANCE, THERE WAS A REAL POSSIBILITY OF WOULD-BE INSIDERS USING THIS ROUTE.
+ACCORDINGLY, THE COMMISSIONER FOR SECURITIES HAS BEEN IN TOUCH WITH THE EXECUTIVE AUTHORITIES OF THE LONDON STOCK EXCHANGE AND THE GOVERNMENT WILL LET UNOFFICIALS KNOW THE OUTCOME OF THE COMMISSIONER'S DISCUSSIONS IN DUE COURSE.
TURNING TO THE USE OF OFFSHORE NOMINEES TO HANDLE TRANSACTIONS, MR. HADDON-CAVE SAID HE PREFERRED TO SEE WHAT EVIDENCE THERE WAS THAT THIS PRESENTED A PROBLEM BEFORE CONSIDERING WHAT ACTION, IF ANY, WAS NECESSARY AND POSSIBLE. HE IS IN TOUCH WITH THE COMMISSIONER FOR SECURITIES ABOUT THIS.
MR. HADDON-CAVE ALSO REVEALED THAT HE HAD ASKED THE STOCK EXCHANGES AND THE COMMISSIONER FOR SECURITIES TO DRAW UP GUIDELINES FOR DIRECTORS AND EMPLOYEES OF A COMPANY WHO LEGITIMATELY WISH TO DEAL IN GOOD FAITH IN SHARES OF THEIR OWN COMPANY.
HE ALSO EXPLAINED THE PROCEDURES FOR A CASE TO BE REFERRED TO THE INSIDER DEALING TRIBUNAL AND ALLAYED FEARS THAT THE STOCK MARKET ITSELF AND EVEN CONF IDENCE GENERALLY COULD BE SERIOUSLY AFFECTED BY THE REFERENCE OF AN EXCESSIVE NUMBER OF CASES TO THE TRIBUNAL.
MR. HADDON-CAVE SAID THE NORMAL PROCEDURE WOULD BE THAT A POTENTIAL CASE WOULD INITIALLY BE INQUIRED INTO BY THE COMMISSIONER FOR SECURITIES, AND IF HE WAS SATISFIED THAT A PRIMA FACIE CASE EXISTED, HE WOULD REPORT HIS VIEWS TO THE SECURITIES COMMISSION.
+ IF THE COMMISSION DECIDES THAT THE COMMISSIONER HAS ESTABLISHED A PRIMA FACIE CASE, IT WILL SO INFORM THE FINANCIAL SECRETARY.
+ IF HE, IN TURK, IS SATISFIED THAT INSIDER DEALING MAY HAVE TAKEN PLACE, THEN WILL REFER THE CASE TO THE TRIBUNAL. +
+ IN OTHER WORDS, ONLY WHE THERE IS CLEAR EVIDENCE OF INSIDER DEALING WILL A CASE REACH THE TRILUNAL,+ NR. HADDON-CAVE SAID.
No comments yet.
Private notes are available after approval.