40Power of Commission to prohibit trading in particular securities

##### 40 Power of Commission to prohibit trading in particular securities (1) Where the Commission 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 Commission 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. (2) 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 Commission is still of the opinion that it is necessary to prohibit trading in those securities on that stock market, the Commission may, by notice in writing to the securities exchange, prohibit trading in those securities on that stock market during such period, not exceeding 21 days, as is specified in the notice. (3) Where the Commission 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 Commission shall: (a) 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 (b) as soon as practicable furnish to the Ministerial Council a written report setting out the reasons for the giving of the notice and send a copy of the report to the securities exchange. (4) Where the Commission 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 Commission in writing to refer the matter to the Ministerial Council. (5) Where such a request is made, the Commission shall forthwith refer the matter to the Ministerial Council, which may, if it thinks fit, direct the Commission to revoke the notice and, if such a direction is given, the Commission shall forthwith revoke the notice. (6) A securities exchange shall not permit trading in securities on the stock market of the securities exchange in contravention of a notice under subsection (2). Penalty: $1,000 for each day on which the securities exchange contravenes this subsection.