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The Securities and Exchange Ordinance, 1969

( Ordinance NO. XVII OF 1969 )

Chapter VI


Power to make regulations
34. (1) A Stock Exchange may, subject to the previous approval of the Commission, make regulations not inconsistent with the rules to carry out the purposes of this Ordinance.
(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:-
(i) constitution, powers and functions of the governing body of the Stock Exchange;
(ii) qualifications for membership of the Stock Exchange; admission, suspension and expulsion of members, disciplinary matters, including punishment of the members;
(iii) classification of members into categories with regard to-
(a) whether they are or are not active in dealings on the Stock Exchange;
(b) whether they have or have not a place of business in the city where the Stock Exchange is located; and
(c) whether a substantial part of their business is in listed or unlisted securities;
(iv) a member's financial responsibility whether by way of minimum capital or a ratio between net capital or aggregate indebtedness, or both;
(v) regulation of dealing by members for their own account; method of soliciting business by members; manner of maintaining books of accounts and financial reports by members;
(vi) methods of selection of officers and committees to ensure a fair representation of the membership;
(vii) qualifications and functions of the directors, officers and other functionaries of the Stock Exchange; disciplinary matters, including punishment of the directors, officers and functionaries;
(viii) listing and delisting of securities;
(ix) the procedure for registration of an issuer and particulars to be furnished for the purpose;
(x) regulation of days and hours of trading in securities, suspension of trading;
(xi) types of contracts and settlements in the Stock Exchange and regulation of contracts generally, including the consequences of default or insolvency; confirmation of contracts;
(xii) regulation of forward trading, badlas and carry-over facilities in relation to transactions and securities;
(xiii) manner of making and publishing quotations, fixing of trade units and differentials and publication of transactions both individually and by volume;
(xiv) setting up of a clearing house in relation to transactions in securities;
(xv) regulation of fictitious and numbered accounts; blank transfers, sort sales, options, odd lots and margins, in relation to transactions and securities;
(xvi) lending and hypothecation of customers' securities;
(xvii) regulation of brokerage and other charges, including fixation of minimum commission;
(xviii) separation of the functions of broker and 1[jobber or dealer];
(xix) procedure for the settlement of claims or disputes, including arbitration; and
(xx) any other matter for which a regulation is required to be or may be made.
(3) All regulations made under this section shall be published in the official Gazette and shall take effect upon such publication.
(4) Where the Commission considers it expedient so to do, it may, by order in writing, direct a Stock Exchange to make any regulation, or to amend or rescind any regulation already made, within such period as it may specify in this behalf.
(5) If a Stock Exchange fails or neglects to comply with any direction under sub-section (4) within the specified period, the Commission may make or amend, with or without modifications, or rescind, any regulation directed to be made, amended or rescinded; and a regulation so made, amended or rescinded by the Commission shall be deemed to have been made, amended or rescinded by the Stock Exchange in accordance with the provisions of this section and shall have effect accordingly.

  • 1
    The words “jobber or dealer” were substituted for the word “jobber” by section 13 of the Securities and Exchange (Amendment) Act, 2012 (Act No. XLVI of 2012).
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Ministry of Law, Justice and Parliamentary Affairs