XN000022-1989-06-29 — Page 8

THURSDAY, JUNE 29, 1989

FINDINGS WILL ONLY SANCTION AT

"UPON COMPLETION OF THE INQUIRY, THE TRIBUNAL'S BE PUBLISHED IN A REPORT AND PUBLIC CENSURE IS THE PRESENT AVAILABLE AGAINST INSIDER DEALERS.

יו

"IT IS RECOGNISED THAT MORE EFFECTIVE DETERRENTS ARE REQUIRED,

SECRETARY HAD IN JULY MR IP SAID, POINTING OUT THAT THE FINANCIAL

TRIBUNAL SYSTEM LAST YEAR ANNOUNCED THAT THE PRESENT INSIDER DEALING

SANCTIONS AGAINST WOULD BE RETAINED FOR THE TIME BEING, AND THAT THE INSIDER DEALING WOULD BE INCREASED SUBSTANTIALLY,

WILL

REFERRING TO THE BILL. MR IP SAID: "FOR TIDINESS

ON INSIDER DEALING REFERENCE, THE PROVISIONS SELF-CONTAINED PIECE OF LEGISLATION."

IN ADDITION TO REPRODUCING THE EXISTING

XIIA OF THE SECURITIES ORDINANCE

AND EASE

IN EMBODIED

A

PROVISIONS IN PART COVERING THE CONSTITUTION, POWERS INCORPORATES AND PROCEDURES OF THE INSIDER DEALING TRIBUNAL, THE BILL A NUMBER OF CHANGES TO THE EXISTING PROVISIONS.

THE FOLLOWING ARE SOME OF THE MORE SIGNIFICANT AMENDMENTS:

(A) DEFINITIONS

THE DEFINITION OF 'RELEVANT INFORMATION' IS AMENDED TO MAKE ABOUT A RELEVANT INFORMATION IS INFORMATION IT CLEAR THAT

IT WERE, CORPORATION WHICH IS NOT GENERALLY AVAILABLE BUT, IF

THE PRICE WOULD BE LIKELY TO BRING ABOUT A MATERIAL CHANGE IN OF ANY LISTED SECURITIES OF A CORPORATION.

IS WIDENED. IT NOW THE DEFINITION OF

OF INSIDER DEALING

PERSON WHO CATCHES AS A PRIMARY INSIDER THE OFFEROR, 1.E. THE

BID, AND THE IS CONTEMPLATING OR HAS CONTEMPLATED A TAKEOVER PERSON THE

WHO KNOWINGLY SECONDARY INSIDER TIPPEE, I.E.

AND MAKES USE OF INSIDE RECEIVES, DIRECTLY OR INFORMATION,

INDIRECTLY,

OF A RELATED

TO ANOTHER

DEAL OR PROMOTING DEALS

SECURITIES THE IT ALSO CATCHES DEALING IN CORPORATION:

OR COUNSELLING PROCURING DISCLOSING INSIDE INFORMATION TO ANOTHER; AND

ON AN OVERSEAS STOCK EXCHANGE. MOREOVER, THE DEFINITION ADDS

BOTH PERSON, NEW REQUIREMENT THAT

A

MUST KNOW THAT HE 19 IN

A

PRIMARY POSSESSION

AND

SECONDARY OF INSIDE

INSIDER, INFORMATION.

(B)

SANCTIONS

THE INSIDER DEALING TRIBUNAL IS EMPOWERED TO

I)

IN THE

INSIDER OF, OR FROM PART IN THE

DISQUALIFY A PERSON FOUND TO BE INVOLVED DEALING UNDER INQUIRY FROM THE DIRECTORSHIP IN ANY WAY BEING CONCERNED OR TAKING MANGEMENT OF, ANY COMPANY, PUBLIC OR PRIVATE FOR A THE COURT'S OF UP TO FIVE YEARS, I.E. SIMILAR TO UNDER SECTION 157E OF THE COMPANIES ORDINANCE;

PERIOD POWERS

/II)

REQUIRE THE

T