XN000022-1989-07-05 — Page 36

WEDNESDAY, JULY 5, 1989

NUMBER

34

TILE

HAS CREATED DELAYS IN

"IN RECENT YEARS, THERE HAS BEEN A SUBSTANTIAL INCREASE IN

OF ADVERTISEMENTS REQUIRING AUTHORISATION. THIS CONSIDERABLE WORK FOR THE COMMISSION AND HAS LED TO SOME AUTHORISATION," HE SAID.

FOR SIMPLIFYING THE PROTECTION OF ORDINARY

MR NENDICK NOTED THAT THERE WAS SCOPE PRESENT PROCEDURES WITHOUT COMPROMISING THE INVESTORS.

EXCEPTIONS

"TO THIS END IT IS PROPOSED THAT IN ADDITION TO THE SPECIFIED IN SECTION 4(2) OF THE ORDINANCE, ADVERTISEMENTS RELATING TO AUTHORISATION, CD AND CP ISSUES SHOULD BE EXEMPTED AUTOMATICALLY FROM PROVIDED THAT CERTAIN MINIMUM DENOMINATION AND ARE MET.

CAPITALISATION TESTS

REPORTED "IT WOULD BE A REQUIREMENT THAT ALL EXEMPT ISSUES ARE TO THE COMMISSION ON A POST FACTO BASIS. ADVERTISEMENTS IN RESPECT OF ISSUES THAT DO NOT QUALIFY FOR SUCH EXEMPTION WILL CONTINUE TO REQUIRE

+ MR WAY, AUTHORISATION FROM

COMMISSION IN THE NORMAL THE EXPLAINED.

"CLAUSE 3(1) OF THE BILL EXEMPTS ADVERTISEMENTS IN THREE MAIN CLASSES OF CAPITAL MARKET INSTRUMENT:

FIRST,

NENDICK

RESPECT OF

COMPANIES

CD ISSUES BY BANKS AND DEPOSIT-TAKING LICENSED OR REGISTERED UNDER THE BANKING ORDINANCE WILL BE EXEMPTED AS THEY ARE ALREADY SUBJECT TO PRUDENTIAL SUPERVISION BY THE COMMISSIONER OF BANKING.

SUCH

IN

A

CS'S

FORM AND READILY ARE GENERALLY

STANDARD

THE PRESENT RECOGNISED BY INVESTORS. THIS EXEMPTION WILL NOT AFFECT

LICENSED OR RESTRICTIONS ON THE TAKING OF DEPOSITS BY DEPOSIT-TAKING COMPANIES UNDER THE RELEVANT PROVISIONS OF THE ORDINANCE.

*

REGISTERED BANKING

HONG

TO A

SECONDLY, CD ISSUES BY OVERSEAS BANKS NOT LICENSED IN

THE WORLD KONG AND BY SPECIFIED MULTILATERAL AGENCIES (FOR EXAMPLE, BANK AND THE ASIAN DEVELOPMENT BANK) WILL BE EXEMPTED SUBJECT MINIMUM DENOMINATION OF HK$1 MILLION OR EQUIVALENT AND, IN THE CASE OF OPINION OVERSEAS BANKS, TO THEIR BEING ADEQUATELY SUPERVISED, IN THE

INCORPORATION OF OF THE COMMISSIONER OF BANKING, IN THEIR PLACE OF PRINCIPAL PLACE OF BUSINESS,

BODIES (INCLUDING MAJOR CP ISSUES BY SPECIFIED THIRDLY,

PUBLIC SESTOR BODIES, PUBLIC LISTED

GOVERNMENT AND COMPANIES,

MULTILATERAL AUTHORISED INSTITUTIONS UNDER THE BANKING ORDINANCE AND

IS A MINIMUM AGENCIES} WILL ALSO BE EXEMPTED PROVIDED THAT THERE DENOMINATION OF HK$1 MILLION OR EQUIVALENT AND THAT, IN THE CASE OF A

WITH

OR THE SHARE A

ISSUER

PARENT CAPITAL, CORPORATION GUARANTEEING THE ISSUE HAS A MINIMUM PAID-UP SHARE CAPITAL MILLION OR EQUIVALENT,

COMPANY OF HK$75

OF DENOMINATION MR

SAID NENDICK

THE PROPOSED MINIMUM MILLION OR EQUIVALENT WAS INTENDED TO KEEP THESE LAST TWO CLASSES INSTRUMENT OUT OF THE HANDS OF ORDINARY INVESTORS.

HK$1

OF

"THESE INSTRUMENTS