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STOCK EXCHANGE ACT, 1995
Supplementary Provisions in Relation to a Direction by the Bank Under section 29 of This Act
1. In this Schedule, a reference to a stock exchange includes a reference to a proposed stock exchange, an approved stock exchange, a former approved exchange or directors and those responsible for the management of an approved stock exchange and reference to a member firm includes reference to a proposed member firm, an authorised member firm, a former authorised member firm or directors and those responsible for the management of an authorised member firm.
3. A stock exchange or member firm to whom a direction has been given under section 29 of this Act may apply to the Court for, and the Court may grant, an order varying or setting aside the direction.
4. Where the Bank applies to the Court for an order confirming a direction under section 29 of this Act, the Court may grant an order confirming the direction or setting it aside, or confirming it and, in the case of a direction made under section 29 (2) of this Act and subject to paragraph 5 of this Schedule, extending the period of its operation for such time, not exceeding the period of 12 months from the date the direction commenced to have effect, as the Court may, having regard to the circumstances, consider appropriate.
5. In addition to, or in lieu of, an order under section 29 (2) of this Act the Court may make such other order in the case as may appear to it to be necessary, including an order directing any person who holds money or other assets for or on behalf of the stock exchange or member firm or client of such stock exchange or member firm, ora specified person, not to dispose of any of those assets except on such conditions and in such circumstances as are specified in the order.
6. A direction which has been confirmed by the Court shall terminate—
(a) at the end of the period of operation specified by the Court,
(b) on the making by the Court of an order for termination on the application of the Bank,
(c) on the making of a winding-up order in respect of the stock exchange or member firm or, where a member firm is constituted as an unincorporated body of persons, a dissolution order, or
(d) on the making by the Court of an order for termination where the Court considers that the circumstances that gave rise to the direction have ceased to exist and that it would be unjust and inequitable not to make the order,
whichever first occurs.
7. If the Bank forms the opinion that the stock exchange or member firm to whom the direction was given is able to meet its obligations to its creditors, investors or clients but the circumstances which gave rise to the direction are unlikely to be rectified, it shall forthwith apply to the Court for, and the Court may grant, an order directing the said stock exchange or member firm to prepare, in consultation with the Bank, a scheme for the orderly termination of its business and the discharge of its liabilities to its creditors, investors and clients under the supervision of the Bank and to submit it to the Court within two months for approval.
8. The Court shall not approve the terms of a scheme under paragraph 7 of this Schedule without hearing the Bank and, in the event of dispute about terms of the scheme, the Bank or the stock exchange or member firm may apply to the Court to adjudicate on the matter.
9. If the stock exchange or member firm fails to comply with an order of the Court under paragraph 7 of this Schedule or fails to adhere to the scheme approved of by the Court, the Bank may apply to the Court for, and the Court may make, such further order as it considers appropriate for the winding-up of the stock exchange or member firm or, where a member firm is constituted as an unincorporated body of persons, for the dissolution of the member firm on the grounds that it is just and equitable that it be wound up or dissolved.
10. The Court may by order revoke or amend an order made by it under paragraph 4 of this Schedule.
11. Where a direction is given by the Bank in accordance with section 29 of this Act—
(a) the stock exchange or member firm to whom the direction has been given shall take all necessary steps to secure that its assets or client or investor assets wherever held, are not depleted without the prior authorisation of the Bank, and
(b) the Bank may direct a credit institution or any institution exempt under section 7 of the Central Bank Act, 1971 ,or any other financial institution which holds an account of the stock exchange or member firm to which the direction has been given, to suspend the making of payments from the account without the prior authorisation of the Bank.