Joint resolution to amend the Securities Exchange Act of 1934 to authorize an investigationof the effect on the securities marlcets of the operation of institutional investors
PL 90-438 (S.J.Res.160), enacted 07/29/1968

82 STAT. ] 
PUBLIC LAW 90-438-JULY 29, 1968 
453 
Public Law 90-438 
JOINT RESOLUTION 
July 29, 1968 
To amend the Securities Exchange Act of 1934 to authorize an investigation 
[S-J- Res. 160] 
of the effect on the securities marlcets of the operation of institutional 
investors. 
Whereas there has been a very significant increase in the amount of 
securities held and traded by institutional investors both in absolute 
terms and in relation to other types of investors; and 
Whereas such an increase may have an impact upon the mainte-
nance of fair and orderly securities markets, upon the issuers of 
securities traded in such markets, and upon the interests of investors 
and the public interest: Now, therefore, be it 
Resolved hy the Senate and House of Representatives 
of the United 
States of America in Congress assemhied^ That section 19 of the Secu- ^l^^^^^^^"^ 
rities Exchange Act of 1934 (15 U.S.C. 78s) is amended by adding at "^Effect o
f insti-
the end thereof the following: 
*"i8°Tti/"89r°'^' 
"(e)(1) The Commission is authorized and directed to make a 
study and investigation of the purchase, sale, and holding of securities 
by institutional investors of all types (including, but not limited to, 
banks, insurance companies, mutual funds, employee pension and 
welfare funds, and foundation and college endowments) in order to 
determine the effect of such purchases, sales, and holdings upon (A) 
the maintenance of fair and orderly securities markets, (B) the 
stability of such markets, both in general and for individual securities, 
(C) the interests of the issuers of such securities, and (D) the in-
terests of the public, in order that the Congress may determine what 
measures, if any, may be necessary and appropriate in the public 
interest and for the protection of investors. The Commission shall 
Report to 
report to the Congress, on or before September 1, 1969, the results ^°"8ress. 
of its study and investigation, together with its recommendations, in-
cluding such recommendations for legislation as it deems advisable. 
"(2) For the purposes of the study and investigation authorized by 
this subsection, the Commission shall have all the power and authority 
which it w^ould have if such investigation were being conducted pursu-
ant to section 21 of this Act. The Commission is authorized to appoint, 
is use 78u. 
without rega^rd to the provisions of title 5, United States Code, gov-
erning appointments in the competitive service, and to pay, without 
regard to the provisions of chapter 51 and subchapter I I I of chapter 
53 of such title relating to classification and General Schedule pay 
so stat. 443, 
rates, such personnel as the Commission deems advisable to carry out '^^s'usc 5101, 
the study and investigation authorized by this subsection, but no such 5331. 
rate shall exceed the per annum rate in effect for a GS-18. 
notJ^^^ ^^'^ 
" (3) In connection with the study authorized by this subsection, the 
Commission shall consult wnth representatives of various classes of 
institutional investors, members of the securities industry, representa-
tives of other Government agencies, and other interested persons. 
The Commission shall also consult with an advisory committee which 
it shall establish for the purpose of advising and consulting with the 
Commission on a regular basis on matters coming within the purview 
of such study. 
" (4) There is authorized to be appropriated not to exceed $875,000 
Appropriation. 
for the study and investigation authorized by this subsection." 
Approved July 29, 1968.