Document ID: chunk:federal_register_of_legislation:C2004A04777:section:5:p12
Version: federal_register_of_legislation:C2004A04777
Segment Type: section
Provision Reference: s 5 (pt 12/16)
Character Range: 78338–81289

stock markets for unquoted prescribed interests

"770A.(1) The management company in relation to unquoted prescribed interests may apply to the Commission in writing for approval by the Minister of a stock market on which the interests (whether or not they remain unquoted) may be traded by means of an electronic trading facility.

SCHEDULE 8—continued

"(2) Subject to section 102A, the Minister may, by writing, approve the stock market if, and only if, the Minister is satisfied that:

     (a) the management company's business rules make satisfactory provision for the fair and orderly conduct of the stock market; and

     (b) those business rules make satisfactory provision for a person or partnership (the 'supervisor') who or that, having regard to the regulations, is independent and appropriately qualified, to monitor compliance, in relation to the stock market, with the business rules; and

     (c) the management company has made or will make, and will maintain, satisfactory arrangements (including, for example, insurance) for meeting liabilities of the management company that arise in the course of conducting the stock market; and

     (d) the stock market will not be used except for trading the prescribed interests (whether or not they remain unquoted) by means of the electronic trading facility; and

     (e) there is an approved deed (for the purposes of Division 5 of Part 7.12) in relation to the interests.

  "(3) The approval is subject to:

  (a) the conditions (if any) specified in the instrument of approval; and

    (b) a condition that the management company will comply with the requirements (if any) of the regulations for the lodging of documents containing information relating to the prescribed interests; and

    (c) a condition that the supervisor must, if the supervisor becomes aware of a contravention of the management company's business rules, notify the Commission of the contravention within 7 days of becoming aware of it; and

    (d) a condition that the supervisor must properly perform the duties that the supervisor has under the management company's business rules.

  "(4) The Minister may, by writing, revoke the approval if:

  (a) the Minister is no longer satisfied as mentioned in subsection (2); or

    (b) the Minister is satisfied that a condition mentioned in subsection (3) has been contravened; or

    (c) the Minister is otherwise satisfied that the approval should be revoked.

  "(5) In this section:

'unquoted', in relation to prescribed interests, means the interests are not included in any class of securities that are quoted on a stock market of a securities exchange.

SCHEDULE 8—continued

Section 770A stock markets—separate markets exist in relation to different kinds of prescribed interests

"770B.(1) For the purposes of subsections 770A(1) and (2), separate stock markets exist in relation to different kinds of prescribed interests even though:

  (a)