68APower of Commission to prohibit short selling in certain cases

##### 68A Power of Commission to prohibit short selling in certain cases (1) Where the Commission forms the opinion that it is necessary to prohibit securities, or securities included in a particular class of securities, from being sold on a stock market of a securities exchange in a manner that, but for paragraph 68(3)(e), would contravene subsection 68(1), in order to protect persons who might sustain financial loss if they were to buy or sell those securities in that manner or in order to protect the public interest, 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 such a notice: (a) the securities exchange does not take action to prevent the selling on a stock market of the securities exchange of securities, or of securities included in a class specified in the notice, as the case requires, in the manner referred to in subsection (1); and (b) the Commission is still of the opinion that it is necessary to prohibit the selling on that stock market of those securities in that manner; the Commission may, by a further notice in writing given to the securities exchange, prohibit the selling on that stock market of those securities in that manner during such period, not exceeding 21 days, as is specified in the further notice. (3) As soon as practicable after giving a notice to a securities exchange under subsection (2), the Commission shall 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) On receipt of a report furnished under subsection (3), the Ministerial Council may, if it thinks fit, direct the Commission to revoke the notice given under subsection (2), and, if such a direction is given, the Commission shall forthwith revoke the notice. (5) A securities exchange shall not permit the selling of securities on a stock market of the securities exchange in a manner that contravenes a notice given under subsection (2). Penalty: $1,000 for each day on which the securities exchange contravenes this subsection.