Stock Exchange Act, 1995

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Directions by Bank.

29.—(1) Without prejudice to the power of the Bank to impose conditions or requirements or both under this Act and, without prejudice to the Bank's powers under subsection (2) or (4) of this section, where the Bank considers it necessary to do so in the interests of the proper and orderly regulation of approved stock exchanges or their member firms or the protection of investors, the Bank is hereby empowered to give a direction to all or any of the following, namely—

(a) any or all approved stock exchanges;

(b) any or all proposed stock exchanges;

(c) any or all former approved stock exchanges;

(d) any or all proposed member firms;

(e) any or all authorised member firms;

(f) any or all former authorised member firms;

(g) any or all member firms;

(h) any or all stock exchanges;

(i) directors and those responsible for the management of approved stock exchanges and authorised member firms;

in relation to any matter related to the operation of a stock exchange or any matter related to its member firms or any matter related to an acquiring transaction within the meaning of section 39 (2) of this Act.

(2) Without prejudice to the Bank's powers under subsection (1) of this section and without prejudice to the powers of the Bank to impose conditions or requirements or both under this Act, where the Bank is of the opinion that it is necessary to do so in the interests of the proper and orderly regulation of approved stock exchanges and their member firms or for the protection of investors, or where an approved stock exchange or a member firm—

(a) has become or is, in the opinion of the Bank, likely to become unable to meet its obligations to its creditors or its clients or both, or

(b) is not maintaining or is, in the opinion of the Bank, unlikely to be in a position to maintain adequate capital resources having regard to the volume and nature of its business, or no longer complies with capital or other financial requirements specified by the Bank from time to time or both, or

(c) has failed to comply with any condition or requirement imposed under this Act, and the circumstances are such that the Bank is of the opinion that the stability or soundness of an approved stock exchange or member firm is materially affected by this failure, or

(d) is conducting business in such a manner as to jeopardise and prejudice monies or investment instruments held by or controlled by it on behalf of clients or the rights and interests of those clients,

then the Bank may give a direction in writing to the approved stock exchange concerned or the member firm concerned or both to suspend for such period not exceeding twelve months, as shall be specified in the direction, any or all of the following, that is to say—

(i) the carrying on of the business of an approved stock exchange or of a member firm;

(ii) the making of payments to which paragraph (i) of this subsection does not relate;

(iii) the acquisition or disposal of any assets or liabilities;

(iv) entering into transactions of any specified kind or entering into them except in specified circumstances or to a specified extent;

(v) soliciting business from persons of a specified kind or otherwise than from such persons or in a specified country;

(vi) carrying on business in a specified manner or otherwise than in a specified manner;

which have not been authorised by the Bank.

(3) A direction under subsection (1) or (2) of this section may be given to a particular person or generally to all persons to whom those subsections apply or to a particular class of person or during a specified period of time or times, or by reference to any other matter which the Bank may consider appropriate.

(4) The First Schedule to this Act shall apply as respects a direction by the Bank under this section.

(5) Where the Bank gives a direction under this section, which said direction shall have immediate effect, the Bank may or, where the Bank is of the opinion that the said direction is not being complied with, the Bank shall apply to the Court in a summary manner for an order confirming the direction.

(6) The Court may, on an application being made under subsection (5) of this section, hear evidence from creditors and the Court may make, in any application under this section, such interim or interlocutory order, if any, as it considers fit.

(7) While a direction under this section is in force, no winding-up proceedings in relation to the approved stock exchange or authorised member firm or associated or related undertaking or, in the case of an authorised member firm or associated or related undertaking which is constituted as an unincorporated body of persons, no proceedings for an order of dissolution, may be commenced pr resolution for winding-up passed in relation to the approved stock exchange or authorised member firm or associated or related undertaking, and no receiver shall be appointed over the assets or over any part of the assets of the approved stock exchange or authorised member firm or associated or related undertaking and such assets shall not be attached, sequestered or otherwise distrained except with the prior sanction of the Court.

(8) The Court may hear proceedings or part of proceedings under this section otherwise than in public.

(9) A creditor who is affected by a direction under subsection (2) of this section may apply to the Court to vary or set aside that direction where it affects the interests of the creditor to a material degree.