Singapore legislation
Clause 22
Clause 22
Power of Authority to prohibit trading in particular securities
(1)
Without prejudice to the generality of section 21, where the Authority forms the opinion that it is necessary to prohibit trading in particular securities of, or made available by, a body corporate on the stock market of a securities exchange in order to protect persons buying or selling the securities or in the interests of the public, the Authority may give notice in writing to the securities exchange stating that it has formed that opinion and setting out the reasons for the formation of that opinion.
(2)
If, after the receipt of the notice, the securities exchange does not take action to prevent trading in the securities to which the notice relates on the stock market of the securities exchange and the Authority is still of the opinion that it is necessary to prohibit trading in those securities on that stock market, the Authority may, by notice in writing to the securities exchange, prohibit trading in those securities on that stock market during such period, not exceeding 14 days, as is specified in the notice.
(3)
Where the Authority gives a notice to a securities exchange under subsection (2) in relation to trading in securities of, or made available by, a body corporate, the Authority shall —
at the same time send a copy of the notice to the body corporate together with a statement setting out the reasons for the giving of the notice; and
as soon as practicable furnish to the Minister a written report setting out the reasons for the giving of the notice and send a copy of the report to the securities exchange.
(4)
Where the Authority gives a notice to a securities exchange under subsection (2) in relation to trading in securities of, or made available by, a body corporate, the body corporate may request the Authority in writing to refer the matter to the Minister.
(5)
Where such a request is made, the Authority shall forthwith refer the matter to the Minister, who may, if he thinks fit, direct the Authority to revoke the notice and, if such a direction is given, the Authority shall forthwith revoke the notice, but if the Minister confirms the prohibition imposed by the Authority, the decision of the Minister shall be final.
(6)
A securities exchange which permits trading in securities on the stock market of the securities exchange in contravention of a notice under subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine of $20,000 and to a further fine of $5,000 for each day the contravention continues after conviction.