PART I | Short title and commencement |
1.—(1) This Act may be cited as the Securities Industry Act, 1970, and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.| (2) The Minister may appoint different dates for the coming into operation of the different Parts or provisions of this Act. |
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2.—(1) In this Act, unless the context otherwise requires —| “agent”, in relation to a dealer, includes a person who is or has at any time been a banker of the dealer; |
| “auditor” means an approved company auditor within the meaning of the Companies Act, 1967 (Act 42 of 1967); |
| “business”, in relation to a dealer, means a business of dealing in securities; |
| “the committee”, in relation to a stock exchange, means the persons for the time being in whom the management of the stock exchange is vested; |
| “company” has the same meaning as is assigned to that expression in the Companies Act, 1967 (Act 42 of 1967); |
| “corporation” has the same meaning as is assigned to that expression in the Companies Act, 1967; |
| “dealer” means a person who carries on a business of dealing in securities whether or not he carries on any other business, but does not include an exempt dealer; |
| “dealer’s representative” means a person in the direct employment of, or acting for, or by arrangement with, a dealer, not being an exempt dealer, who performs for that dealer any of the functions of a dealer (other than work ordinarily performed by accountants, clerks or cashiers) whether his remuneration is by way of salary, wages, commission or otherwise; and, where the dealer is a corporation, includes any director, member or officer of the corporation who is not the holder of a dealer’s licence and who performs for the corporation any of the said functions (whether or not his remuneration is as aforesaid); |
“dealing in securities” means (whether as principal or agent) making or offering to make with any person, or inducing or attempting to induce any person to enter into or to offer to enter into —| (a) | any agreement for or with a view to acquiring, disposing of, subscribing for, or underwriting securities; or | | (b) | any agreement the purpose or pretended purpose of which is to secure a profit to any of the parties from the yield of securities or by reference to fluctuations in the value of securities; |
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| “director” has the same meaning as is assigned to that expression in the Companies Act, 1967; |
“exempt dealer” means —| (a) | a person who carries on a business of dealing in securities only through the holder of a dealer’s licence; | | (b) | a corporation that is authorised under any written law to be a dealer in the short term money market; or | | (c) | any public statutory corporation constituted under any written law in Singapore; |
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“licence” means —| (a) | a dealer’s licence; or | | (b) | a representative’s licence, |
| under Part III of this Act; |
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| “member company” means a company which carries on a business of dealing in securities and is recognized as a member company by a stock exchange; |
| “member firm” means a firm which carries on a business of dealing in securities and is recognized as a member firm by a stock exchange; |
| “Registrar” means the Registrar of Companies under the Companies Act, 1967 (Act 42 of 1967), and includes any Deputy or Assistant Registrar of Companies; |
“relevant authority” means —| (a) | in relation to a sole trader, the stock exchange of which the sole trader is a member; | | (b) | in relation to a member firm or company, the stock exchange by which the firm or company is recognized; and | | (c) | in relation to any other person, the Registrar; |
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| “representative” means a dealer’s representative; |
| “rules”, in relation to a stock exchange, means the rules governing the conduct of the stock exchange or the members thereof by whatever name called and wherever contained and includes rules contained in the memorandum of association and the articles of association of the stock exchange; |
| “securities” means debentures, funds, stocks, shares or bonds of any government or of any body, corporate or unincorporate, and includes any right or option in respect thereof and any interest as defined in section 84 of the Companies Act, 1967; |
| “sole trader” means a stock broker who carries on a business of dealing in securities on his own account and not in partnership or as director of a company; |
“stock broker” means —| (a) | a member of a stock exchange; | | (b) | a partner in a member firm; or | | (c) | a director of a member company; |
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“stock exchange” means —| (a) | the Stock Exchange of Malaysia and Singapore; and | | (b) | any other body corporate which has been approved by the Minister under subsection (2) of section 4 of this Act. |
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| “stock market” means a market, exchange or other place at which securities are regularly offered for sale, purchase or exchange; |
| “trust account” means a trust account established under section 19 of this Act. |
(2) Regulations made under section 75 of this Act may provide that, subject to any terms and conditions precribed, all or any of the provisions of this Act —| (a) | shall not have effect in relation to any prescribed dealer who does not or to any prescribed class of dealers who do not deal in securities for or on behalf of any other person; or | | (b) | shall have effect in relation to any such dealer or class of dealers to such extent as is prescribed. |
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