24A. Failure to maintain minimum financial requirements
Feedback & supportLast amended by an amending law of 1995.
If a futures broker becomes aware of any inability by it to comply with the minimum financial requirements prescribed by the Authority under section 24, the futures broker shall forthwith —
futures broker
“futures broker” means any person, whether as principal or agent, who —(a)carries on the business of soliciting or accepting orders, for the purchase or sale of any commodity under a futures contract on any Futures Exchange or futures market whether or not that person accepts any money, securities or property (or extends credit in lieu thereof) to margin, guarantee or secure any contract or transaction that may result therefrom; or(b)carries on the business of leveraged foreign exchange trading,whether the business is part of, or is carried on in conjunction with, any other business;
notify the Authority of that inability; and
cease carrying on its business as a futures broker otherwise than for the purpose of giving effect to any transaction permitted by or by virtue of its licence and entered into before the time when it became so aware unless the Authority has under subsection (2)(b) permitted the futures broker to continue carrying on its business.
Where the Authority becomes aware of any inability by a futures broker to comply with the minimum financial requirements prescribed under section 24, the Authority may, whether or not the futures broker has notified the Authority as required under subsection (1)(a) —
suspend the licence of the futures broker; or
permit the futures broker to continue carrying on the business of futures trading or leveraged foreign exchange trading on such conditions, if any, as the Authority may impose.
A futures broker shall be deemed to be aware of an inability to comply with the minimum financial requirements if any of its directors or officers is so aware or would, with the exercise of reasonable diligence, have been aware of such inability.