Document ID: chunk:federal_register_of_legislation:C2004A03415:body:0:p20
Version: federal_register_of_legislation:C2004A03415
Segment Type: other
Provision Reference: 
Character Range: 49839–52684

in securities;".

Deposits to be invested by stock exchange
9. Section 97 of the Principal Act is amended:
     (a) by omitting from subsection (1) "sole trader or member firm" (twice occurring) and substituting "person or partnership";
     (b) by omitting subsection (3) and substituting the following subsections:
    "(3) A participating exchange shall pay into the Fund money received by way of interest in respect of amounts invested by it under subsection (1).
    "(3a) A stock exchange (other than a participating exchange) shall pay money received by way of interest in respect of amounts invested by it under subsection (1) into its fidelity fund.";
     (c) by omitting from subsections (4), (5) and (6) "sole trader or member firm" (wherever occurring) and substituting "person or partnership"; and
     (d) by omitting subsections (7) and (8) and substituting the following subsections:
    "(7) Where a person or partnership contravenes subsection (6), the person, or each partner in the partnership, as the case may be, is guilty of an offence.
    Penalty: $5,000 or imprisonment for 1 year, or both.
    "(8) The Fund shall guarantee the repayment by a participating exchange of the amount of a deposit received by the participating exchange from a person or partnership.
    "(9) The fidelity fund of a stock exchange (other than a participating exchange) shall guarantee the repayment by the stock

    exchange of the amount of a deposit received by the stock exchange from a person or partnership.
    "(10) In this section, 'participating exchange' means a stock exchange that is, for the purposes of Part IXa, a participating exchange.".

Accounts in respect of deposits
10. Section 98 of the Principal Act is amended by omitting subsection (1) and substituting the following subsection:
"(1) A stock exchange shall establish and keep proper accounts of deposits received by the stock exchange under:
     (a) in the case of the Exchange—this Part or the provisions of a law of a participating State or participating Territory that correspond with this Part; or
     (b) in any other case—this Part;
and shall, within one month after each quarter day, cause a balance sheet to be made out as at that quarter day.".

Claims etc. not affected by this Part
11. Section 99 of the Principal Act is amended by omitting from paragraphs (a) and (b) "sole trader or member firm" and substituting "member organisation of a stock exchange".
12. Before section 100 of the Principal Act the following section is inserted in Part IX:

Interpretation
"99a. In this Part, 'participating exchange' means a securities exchange:
     (a) in any case—that is, for the purposes of Part IXa, a participating exchange; or
     (b) if the Exchange is, for the purposes of Part IXa, a participating exchange—that is a local Exchange subsidiary.".