Singapore legislation

Section 17

Power of Minister to approve a body corporate as an approved securities organisation

(1)

A body corporate that proposes to establish, maintain or provide a stock market may make an application in writing to the Minister to be approved as an approved securities organisation.

(2)

The Minister may, by notice in writing, approve as an approved securities organisation a body corporate that makes an application under subsection (1) if he is satisfied —

(a)

that the rules of the body corporate make satisfactory provision —

(i)

for efficient, honest, fair, competitive and informed trading in securities on the stock market or stock markets of the proposed approved securities organisation (referred to in this subsection as the organisation); and

(ii)

generally for the carrying on of the business of the organisation with due regard to the interests of the public,and, without limiting the generality of the foregoing, make satisfactory provision in relation to such of the following matters as appear to the Minister to be relevant in relation to the application:

(A)

the admission, suspension, expulsion and discipline of members;

(B)

dealings in securities by members;

(C)

the listing of securities for trading on the stock market or stock markets of the organisation;

(D)

trading in securities on the stock market or stock markets of the organisation;

(E)

the clearing and settlement of dealings in securities that result from trading in securities on the stock market or stock markets of the organisation;

(F)

the quotation of securities on, and the reporting of trading in securities on, the stock market or stock markets of the organisation;

(G)

the monitoring of compliance with, and the enforcement of, the business rules of the organisation;

(b)

that the body corporate has made or adopted listing rules and, where the listing rules are adopted, has made provision to the effect that an amendment of the rules so adopted made by another person is of no effect until the body corporate adopts the amendment;

(c)

that the listing rules made or adopted by the body corporate make satisfactory provision —

(i)

with respect to conditions under which securities may be traded on the stock market or stock markets of the organisation; and

(ii)

generally for the protection of the interests of the public; and

(d)

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

(3)

The Minister may revoke any approval granted under section 16 and this section if —

(a)

the body corporate ceases to operate as a stock exchange or an approved securities exchange;

(b)

the body corporate is being wound up; or

(c)

the body corporate is operating in a manner detrimental to the public interest.

Read in full context — Securities Industry Act →