Singapore legislation

Section 16

of Securities Industry Act

Section 16

Power of Minister to approve a stock exchange

(1)

Application for approval as a stock exchange may be made to the Minister in the prescribed form and manner.

(2)

The Minister may, by notice in writing, approve a body corporate as a stock exchange if he is satisfied —

(a)

that at least 10 members of the body corporate will carry on the business of dealing in securities independently of and in competition with each other;

(b)

that the rules of the body corporate make satisfactory provision —

(i)

for the exclusion from membership of persons who are not of good character and high business integrity;

(ii)

for the expulsion, suspension or disciplining of members for conduct inconsistent with just and equitable principles in the transaction of business or for a contravention of or failure to comply with the rules of the stock exchange or the provisions of this Act;

(iii)

with respect to the conditions under which securities may be listed for trading in the market proposed to be conducted by the body corporate;

(iv)

with respect to the conditions governing dealings in securities by members;

(v)

with respect to the class or classes of securities that may be dealt in by members;

(vi)

with respect to a fair representation of persons in the selection of its committee members and administration of its affairs and provide that one or more committee members shall be representative of listed companies and investors and not be associated with a stockbroker or dealer; and

(vii)

generally, for the carrying on of the business of the stock exchange with due regard to the interests of the public; and

(c)

that the interests of the public will be served by the granting of his approval.

(3)

Nothing in this section shall preclude the Minister from time to time appointing any person or persons, who is or are knowledgeable about the securities industry and who is or are not associated with a stockbroker or dealer, to be on the committee of the stock exchange to represent the public interest and the person or persons so appointed —

(a)

shall have the same rights, powers, duties and obligations, liberties and privileges as any other member of the committee of the stock exchange; and

(b)

shall hold office for a period specified by the Minister who may at any time revoke such an appointment.

Read in full context — Securities Industry Act →