THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.2 - SECURITIES EXCHANGES AND STOCK MARKETS

SECTION 770A   APPROVAL OF SPECIAL STOCK MARKETS FOR UNQUOTED PRESCRIBED INTERESTS  

770A(1)  [Method of application]  

The responsible entity in relation to unquoted interests in a registered scheme may apply to the Commission in writing for approval by the Minister of a stock market on which the interests (whether or not they remain unquoted) may be traded by means of an electronic trading facility.

770A(2)  [Grounds for approval]  

Subject to section 102A, the Minister may, by writing, approve the stock market if, and only if, the Minister is satisfied that:

(a)  the responsible entity's business rules make satisfactory provision for the fair and orderly conduct of the stock market; and

(b)  those business rules make satisfactory provision for a person or partnership (the supervisor ) who or that, having regard to the regulations, is independent and appropriately qualified, to monitor compliance, in relation to the stock market, with the business rules; and

(c)  the responsible entity has made or will make, and will maintain, satisfactory arrangements (including, for example, insurance) for meeting liabilities of the responsible entity that arise in the course of conducting the stock market; and

(d)  the stock market will not be used except for trading the interests in the scheme (whether or not they remain unquoted) by means of the electronic trading facility.

(e)  (Repealed by No 62 of 1998, Sch 2, Pt 1 (effective 1 July 1998).)

770A(3)  [Approval subject to conditions]  

The approval is subject to:

(a)  the conditions (if any) specified in the instrument of approval; and

(b)  a condition that the responsible entity will comply with the requirements (if any) of the regulations for the lodging of documents containing information relating to the interests in the scheme; and

(c)  a condition that the supervisor must, if the supervisor becomes aware of a contravention of the responsible entity's business rules, notify the Commission of the contravention within 7 days of becoming aware of it; and

(d)  a condition that the supervisor must properly perform the duties that the supervisor has under the responsible entity's business rules.

770A(4)  [Minister may revoke approval]  

The Minister may, by writing, revoke the approval if:

(a)  the Minister is no longer satisfied as mentioned in subsection (2); or

(b)  the Minister is satisfied that a condition mentioned in subsection (3) has been contravened; or

(c)  the Minister is otherwise satisfied that the approval should be revoked.

770A(5)  [``unquoted'']  

In this section:

``unquoted'' , in relation to interests in a registered scheme, means the interests are not included in any class of securities that are quoted on a stock market of a securities exchange.