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7.

To safeguard further the interests of investors,

the Bill proposes to strengthen the powers of the

Commissioner for Securities in monitoring dealers' financial

viability. On becoming aware of their inability to comply

with the specified financial requirements, dealers will be

required to cease trading and to inform the Commissioner for

Securities, who may then revoke or suspend registration.

Auditors who, during the performance of their duties,

discover that a dealer has failed to comply with the

requirements, will have to so notify the Commissioner.

Commissioner is further empowered to examine at will the

accounts and books of any dealers. The Bill provides

additional grounds for the Commissioner to refuse, revoke or

suspend the registration or renewal of registration of a

dealer or an investment adviser and to inquire into

allegations of misconduct.

The

8.

Finally, provisions previously contained in the

First Schedule to the Stock Exchanges Unification Ordinance,

together with necessary amendments, are now re-enacted in

Part III of the Bill.

9.

Sir, the provisions contained in the Bill have

been drawn up in consultation with and have the full support

of the Securities Commission and the Committee of the

Unified Exchange.