Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 36

Rules by Commission

(1) Without prejudice to section 398(7) and (8), the Commission may make rules
in respect of the following matters-

   (a)  the listing of securities, and in particular-

        (i)    prescribing the requirements to be met before securities may be
               listed;

        (ii)   prescribing the procedure for dealing with applications for the
               listing of securities;

        (iii)  providing for the cancellation of the listing of any specified
               securities if the Commission's requirements for listing, or the
               requirements of the undertaking referred to in paragraph (e),
               are not complied with or the Commission considers that such
               action is necessary to maintain an orderly market in Hong Kong;

   (b)  the conditions subject to which, and the circumstances in which, a
        recognized exchange company shall suspend dealings in securities or
        shall direct that dealings in securities recommence;

   (c)  the procedure for and the method of allotment of any securities
        arising out of an offer made to members of the public in respect of
        those securities;

   (d)  persons who may be admitted as an exchange participant of a recognized
        exchange company;

   (e)  requiring companies the securities of which are listed or accepted for
        listing to enter into an undertaking in the form prescribed in the
        rules with a recognized exchange company which may operate a stock 
        market under section 19 to provide such information at such times as
        may be specified, and to carry out such duties in relation to its
        securities as may be imposed, in the undertaking;

   (f)  requiring a recognized exchange company which has become aware of any
        matter which adversely affects, or is likely to adversely affect, the
        ability of any exchange participant of the company to meet its
        obligations as an exchange participant, to make a report concerning
        the matter to the Commission as soon as reasonably practicable after
        becoming aware of the matter;

   (g)  requiring a recognized exchange company when it expels any of its
        exchange participants, or suspends any of its exchange participants
        from trading on the recognized stock market or recognized
        futures market it operates or through its facilities, or requests any
        of its exchange participants to resign as an exchange participant, to
        notify the Commission of that fact within 3 business days after the
        expulsion, suspension or making of the request (as the case may be)
        and, in addition, to cause the expulsion, suspension or request to be
        notified to the public in such manner and within such period as may be
        prescribed in the rules;

   (h)  any matter which is to be or may be prescribed by rules made under
        section 23.

(2) Before making any rules in respect of any matter specified in subsection
(1), the Commission shall consult-

(a) the Financial Secretary; and

   (b)  the recognized exchange company or all the recognized exchange
        companies (as the case may be) to which that matter relates.

(3) Nothing in this section prevents a recognized exchange company from making
rules under section 23 on any matter referred to in subsection

(1), but any such rules shall have effect only to the extent that they are not
repugnant to any rule made by the Commission under subsection (1).