22. Power of Authority to prohibit trading in particular securities
Feedback & supportWithout 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.
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.
securities exchange
“securities exchange” means a stock exchange or an approved securities organisation;
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 —
securities
“securities” means —(a)debentures, stocks or bonds issued or proposed to be issued by a government;(b)debentures, stocks, shares, bonds or notes issued or proposed to be issued by a body corporate or unincorporate;(c)any right or option in respect of any such debentures, stocks, shares, bonds or notes; or(d)any interest as defined in section 107 of the Companies Act, but does not include —(e)futures contracts that are governed by any written law regulating trading in futures contracts;(f)bills of exchange;(g)promissory notes; or(h)certificates of deposit issued by a bank;
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.
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.
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.
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 every day during which the contravention continues after conviction.
stock market
“stock market” means a market, or other place at which, or a facility by means of which —(a)offers to sell, purchase or exchange securities are regularly made or accepted;(b)offers or invitations are regularly made, being offers or invitations that are intended, or may reasonably be expected, to result, whether directly or indirectly, in the making or acceptance of offers to sell, purchase or exchange securities; or(c)information is regularly provided concerning the prices at which, or the consideration for which, particular persons, or particular classes of persons, propose, or may reasonably be expected, to sell, purchase or exchange securities;