Section 2019Part 1 — Securities Investment Business Act
Consolidated and revised this 31st December,
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Note (not forming part of the Law): This revision replaces the 2019 Revision which should now be discarded. Securities Investment Business Law (2020 Revision) Arrangement of Sections SECURITIES INVESTMENT BUSINESS LAW (2020 Revision) Arrangement of Sections Section Page Part I - Introductory 1. Short title ................................................................................................................................ ...7 2. Definit ions ................................................................................................................................ ..7 3. Group of companies ................................ ................................ ................................ ................ 11 Part II - Securities Investment Business 4. Meaning of securities investment business ................................ ................................ .............. 12 4A. Exercise of discretionary powers ................................ ................................ ............................. 12 4B. Direction to cease and desist ................................ ................................ ................................ ... 12 4C. Prohibition to act as depositary ................................ ................................ ................................ 13 Part III - Licensing and Regulation of Licensee 5. Requirement for a licence, registration, deregistration and fees payable ................................ .. 13 6. Application for a licence ................................ ................................ ................................ ........... 16 7. Fees and returns ................................ ................................ ................................ ..................... 18 8. Shares not to be issued or transferred without the prior approval of the Authority .................... 18 9. Use of words connoting securities investment business ................................ ........................... 19 10. Segregation of property ................................ ................................ ................................ ........... 20 11. Re gulations ................................ ................................ ................................ ............................. 20 12. Guidance notes ................................ ................................ ................................ ....................... 21 13. Accounts ................................ ................................ ................................ ................................ .. 21 14. Certain prohibitions on licensee ................................ ................................ ............................... 22 Arrangement of Sections Securities Investment Business Law (2019 Revision) 15. Number and approval of directors ................................ ................................ ............................ 22 16. Powers and duties of the Authority ................................ ................................ ........................... 23 17. Enforcement powers of the Authority ................................ ................................ ....................... 24 18. Injunctions and restitution and disgorgement orders ................................ ................................ 26 19. Duty of auditor ................................ ................................ ................................ ......................... 28 20. Entry and search of premises ................................ ................................ ................................ .. 29 21. Winding up ................................ ................................ ................................ .............................. 30 22. Appeals against decisions made under section 17(2A)(a) and (h) ................................ ............ 30 23. Appeals against other decisions of the Authority ................................ ................................ ...... 31 Part IV - False or Misleading Market and Insider Dealing 24. Creation of false or misleading market ................................ ................................ ..................... 31 25. Insider dealing ................................ ................................ ................................ ......................... 31 26. Defences ................................ ................................ ................................ ................................ . 31 27. Territorial scope of offence of insider dealing ................................ ................................ ........... 33 28. Limits on section 25 ................................ ................................ ................................ ................. 34 29. Dealing in listed securities ................................ ................................ ................................ ....... 34 30. Procuring the acquisition or disposal of a listed security ................................ ........................... 34 31. Inside information ................................ ................................ ................................ .................... 34 32. “Price - affected securities” and “price - sensitive information” ................................ ..................... 35 33. Information as an insider ................................ ................................ ................................ .......... 35 34. Definition of “made public” ................................ ................................ ................................ ....... 35 35. Penalties ................................ ................................ ................................ ................................ .. 35 Part V - Broker Members 36. Duty of Exchange and Authority in relation to broker members ................................ ................ 36 Part VI - General 37. Offences by corporations ................................ ................................ ................................ ......... 37 38. Indemnity ................................ ................................ ................................ ................................ . 37 39. Offences ................................ ................................ ................................ ................................ .. 37 40. Spent ................................ ................................ ................................ ................................ ....... 37 41. Amendment of the Schedules ................................ ................................ ................................ .. 37 42. Transitional ................................ ................................ ................................ .............................. 37