+
WEDNESDAY, JUNE 30, 1993
SUCH EXEMPTIONS WILL BE EXTENDED TO DEBT MARKET INSTRUMENTS ISSUED BY CORPORATIONS WHICH COMPLY WITH A NET ASSET REQUIREMENT OF $100 MILLION,
BY IF SUCH INSTRUMENTS ARE GUARANTEED
AN AUTHORISED INSTITUTION UNDER THE BANKING ORDINANCE, A MULTILATERAL AGENCY OR BY SPECIFIC EXEMPTED BODIES.
EXEMPTIONS WILL ALSO BE EXTENDED TO THOSE INSTRUMENTS ISSUED BY BY A WHOLLY OWNED SUBSIDIARY OF A LISTED CORPORATION AND GUARANTEED
PARENT COMPANY CONCERNED, IF THE LATTER THE
THE MEETS
NET ASSET
REQUIREMENT.
"PAID
THE "NET ASSET" REQUIREMENT IS PROPOSED TO REPLACE SHARE CAPITAL" AS A MORE ACCURATE AND USEFUL MEASURE OF THE NET OF A CORPORATION.
UP WORTH
THE LEVEL OF ASSET REQUIREMENT WILL BE RAISED FROM $75 MILLION ΤΟ $100 MILLION SO THAT ONLY THE MORE SUBSTANTIAL CORPORATE ISSUERS WILL BE ELIGIBLE FOR THE EXEMPTION.
BE
THE BILL ALSO ALLOWS THE SECURITIES AND FUTURES COMMISSION то TAKE (SFC)
INTO
AN ACCOUNT THE FEATURES OF
то INSTRUMENT ADVERTISED IN APPROVING AN APPLICATION FOR AUTHORISATION.
THIS WOULD ENABLE THE SFC TO REQUEST THE ISSUER MAKING THE APPLICATION TO MAKE CHANGES TO THE INSTRUMENT BEFORE
ANY GRANTING
AUTHORISATION.
IN OTHER WORDS, THE SFC WILL BE EMPOWERED TO REFUSE AN
IF IT IS SATISFIED THAT IT WOULD NOT BE IN THE APPLICATION OF THE INVESTING PUBLIC.
INTERESTS
RELATING TO LISTED SECURITIES, THE BILL ALSO PROPOSES TO ADD A NEW CATEGORY OF EXEMPTION FOR THE ISSUE OF ADVERTISEMENTS, INVITATIONS AND DOCUMENTS, INCLUDING DEBT SECURITIES AND WARRANTS, WHICH ARE 1.ISTED ON THE STOCK EXCHANGE OF HONG KONG LTD.
VETTED
SUCH ISSUES WOULD ALREADY HAVE COMPLIED WITH THE LISTING RULES OF THE STOCK EXCHANGE AND SHOULD BE EXEMPTED FROM BEING DOUBLY UNDER THE ORDINANCE.
THE
BILL ALSO GRANTS THE EUROPEAN BANK FOR RECONSTRUCTION DEVELOPMENT, WHICH HAS INDICATED AN INTEREST TO TAP HONG KONG'S MARKET, A MULTILATERAL AGENCY STATUS. THIS STATUS WILL ENABLE IT ISSUE DEBT INSTRUMENTS IN THE LOCAL MARKET.
AND
DEBT
TO
MARKETS
FURTHER
OF SOME
THE PROPOSED AMENDMENTS WERE SUGGESTED BY MARKET PRACTITIONERS LIKE THE LAW SOCIETY AND THE HONG KONG CAPITAL ASSOCIATION IN ORDER ΤΟ IMPROVE THE FRAMEWORK FOR THE DEVELOPMENT OF CAPITAL MARKET IN HONG KONG.
DEBATE ON THE BILL WAS ADJOURNED.
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