Section 32

In deciding whether a dealer or his representative or an investment adviser or his representative should hold a licence under this Act, the Authority may enquire into any transactions involving the purchase or sale of securities entered into by that person, whether directly or indirectly, during any period of 12 months preceding the application for a licence or renewal of a licence, as the case may be (referred to in this section as the relevant period) to ascertain if that person has in such transaction or series of transactions used dishonest, unfair or unethical devices or trading practices, whether such devices or trading practices constitute an offence under this Act or otherwise.

For the purposes of subsection (1), the Authority may, in such form and within such time as it may specify by notice in writing, require a dealer or his representative or an investment adviser or his representative to submit detailed information of all or any transactions involving the purchase or sale of securities, whether such transactions were completed — during the relevant period — before or after the commencement of this Act.

Any person who, without reasonable excuse, fails or refuses to submit information to the Authority within the time specified in the notice referred to in subsection (2) or who gives false or misleading information shall, in addition to any other penalty that may be imposed under this Act, be liable in the case of an application for renewal of a licence to have his licence revoked under section 38 and in the case of first application for a licence to have his application refused.