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CHAPTER 6
OVER-THE-COUNTER CENTRE AND FUTURES AND OPTIONS CENTRE
DIVISION 1
OVER-THE-COUNTER CENTRE
 SECTION204.
- An over-the-counter centre may be established by not less than fifteen
securities companies jointly applying for a license from the SEC for the purpose of
trading securities which are not securities listed in theSecurities Exchage.
- SECTION205.
- The appicaiton for a license to establish an over-the-counter centre in
accordance with Section 204 shall be submitted to the SEC and shall
have the following particulars:
- name of the over-the-counter centre;
- location of the office of the over-the-counter-centre;
- name of the securities companies which are founder members;
- capital and sources of capital for operation;
- regulations of the over-the-counter centre;
- other details as specified in the notification of the SEC.
- The application referred to in the first paragraph shall be accompanied
by the documents concerning the extablishment agreement, regulations applicable to members
and other documents specified in the notification of the SEC.
- SECTION
206.
- The application for and the issuance of a license shall be in accordance
with the rules, conditions and procedures specified in the notification of the SEC.
- SECTION207.
- The SEC shall have the power to determine a fee for a license for the
establishment of an over-the-counter centre.
- SECTION208.
- A licensed over-the-counter centre shall be a juristic person.
- SECTION209.
- No person shall engage in the business of over-the-counter centre or
similar businesses unless a license has been obtained in accordance with this Division.
- SECTION210.
- After the establishment of an over-the-counter centre in accordance withSection 204, there shall be a board of directors of the centre
comprising not more than nine members elected by the founder members.
- The directors of the over-the-counter centre shall elect the chairman,
vice-chairman, manager of the over-the-counter centre and other positions as deemed
appropriate from among the directors referred to in the first paragraph.
- Names and positions of the directors of the over-the-counter centre shall
be submitted to the SEC without delay.
- SECTION211.
- In cases where alterations and modifications have been made to the
regulations of the over-the-counter centre applicable to members, the over-the-counter
centre shall report such alterations and modifications to the SEC without delay.
- SECTION212.
- Where the SEC determines that any regulations of the over-the-counter
centre applicable to members may cause damage or may affect the rights and interests of
the public, the SEC shall have the power to order the over-the-counter centre to revoke,
alter or modify such regulations.
- SECTION213.
- The over-the-counter centre shall ensure that members enter into a
commitment to comply with the provisions of this Act, or rules and regulations of such
over-the-counter centre, or rules and regulations specified by the SEC. In cases where
there has been a contravention of or non-compliance with such rules and regulations by a
member, the over-the-counter centre shall punish such member.
- The punishment referred to in the first paragraph shall be:
- probation;
- fine;
- temporary prohibition from trading in the over-the-counter centre;
- termination of membership.
- SECTION214.
- An over-the-counter centre shall be dissolved in any of the following
events:
- events specified in the agreement establishing the over-the-counter
centre as causes of dissolution;
- a resolution by the members' meeting to dissolve;
- the number of members has been reduced to less than fifteen and the SEC
issues a resolution to dissolve;
- bankruptcy;
- when there is a reasonable cause for the SEC to order the dissolution.
- The dissolution in accordance with (1) and (2) shall be effective when
given an approval by the SEC.
- SECTION215.
- After the dissolution of an over-the-counter centre, the remaining assets
of the over-the-counter centre shall be equally distributed among members, unless
otherwise specified in the agreement establishing the over-the-counter centre or the
regulations applicable to members.
- SECTION216.
- The provisions of Section 91, Section 158, Section 160, Section 161, Section 162, Section 163, Section 186, Section 190, Section 193, Section 194, and Section
197 including related penalty provisions shall apply mutatis mutandis.
- SECTION217.
- The provisions of Section 167, Section 168, Section 170 ,
Section 171, Section 172,
Section 178, Section 179,
Section 180, Section 181,
Section 182, Section 183,
Section 184, Section 187,
Section 188, Section 189,
Section 191, Section 195,
Section 196, Section 198,
Section 199, Section 200,
Section 201, Section 202
and Section 203 including related penalty provisions
shall apply mutatis mutandis.
 DIVISION
2 FUTURES AND OPTION CENTRE
- SECTION
218.
- The extablishment, operation, supervision and control of the operation of
a futures and options centre shall be in accordance with the governing laws.
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