Stock Exchange Act, 1995

Appointment of an inspector by Bank.

64.—(1) Without prejudice to its powers under this Act, the Bank may, subject to subsection (2) of this section, appoint one or more inspectors to investigate and report on any or all of the following, namely—

(a) the affairs and conduct of the business of an approved stock exchange or an authorised member firm or other undertaking which is, or was at the relevant time, an associated or related undertaking of an approved stock exchange or an authorised member firm, or any particular aspect of such business,

(b) compliance of the approved stock exchange or authorised member firm with all or any of the following:

(i) conditions or requirements or both imposed by the Bank under this Act,

(ii) rules or codes of conduct set out or approved by the Bank under this Act,

(iii) rules of an approved stock exchange,

(iv) any requirement of this Act,

(v) rules or requirements approved or imposed by the Bank with respect to clients' money and investment instruments,

(vi) any other enactment, and

(c) any other matter as the Bank may consider appropriate.

(2) An appointment under subsection (1) of this section may be made by the Bank if it is of the opinion that there are circumstances suggesting that it is necessary—

(a) for the effective administration of the law relating to approved stock exchanges and their member firms, or

(b) for the effective discharge by the Bank of its statutory functions.

(3) The terms of appointment of an inspector under this section may define the scope of his investigation, whether as respects the matters or the period to which it is to extend or otherwise, and in particular may limit the investigation to matters connected with particular circumstances.

(4) Subject to the terms of appointment of an inspector, the powers conferred on him by this section shall extend to the investigation of any circumstances suggesting the existence of an arrangement or understanding which, though not legally binding, is or was observed or likely to be observed in practice and which is relevant to the purposes of his investigation.

(5) For the purposes of any investigation under this section, sections 58 to 62 , except sections 59 , 60 (3) and 61 (3), shall apply with the necessary modifications or references to the affairs of the approved stock exchange or authorised member firm or to those of any other person or any associated or related undertaking, so, however, that—

(a) the said sections shall apply in relation to all persons who are or have been officers or employees or agents of the approved stock exchange or authorised member firm or other person who appears to the inspector to have the information, document, material or explanation in his possession or under his control, and

(b) for references to the Court, except in sections 58 , 60 (4), 61 (1) and 61 (2) of this Act, there shall be substituted references to the Bank.