AN ACT e nacted by the Parliament AlT mahrug b' ligi mill·Parlllment of Malta, ta' Mallll, AIT btu Jlstab~llb(xll· Roru la ' MllIta

Supplimellllu/·Guzullu 1Il/·evem lu' Ma/Ill, NfU , /5,355, /3 111' Novt ntbru, /1J9()

TuqJimu

A

MAL TA

AIT Nru. XXXIII la' 1·1990

ACI' No. XXXIII of 19!Ml

AN ACT e nacted by the Parliament

AlT mahrug b' ligi mill·Parlllment

of Malta,

ta' Mallll,

AIT btu Jlstab~llb(xll· Roru la ' MllIta

AN ACI' 10 tstabllsh lhe Malta Sloo.:k F",·

u $SblexJIr~a I·ruul,junijiellagbha,

change and to ~ulale its functions, 10

sabln jipprovdl glial kununert ordinal

provide for orderly trading in SII('.

la' titoli u ulMxjlpprovdi d ...... b ... ej·

unties and 10 provide for malten ancil·

Jet M,.. anCillari .le'" ini:klentali

lary or illCiMntallben:to Of' ronnectrd

........,.

&iWlhom jtw Ii gllllndhom x'jaqsmu

then:w"h,

A

A'n

TA' 1.-1990 I)WAR IL. BOkSA TA' i\t ,\I.TA

A RRANGAME1"lr n TA ' ARTIKQLI

TAQSIMA I

P~liminari

I. Titolu fiI ·qosor u bid ll fis-schh

Short title and com mencement

(Artiko lu 7)

L· ISf,\ TUT

I. Appti ka bifi la

Dan I-Istmut japphka ghall-" Bo rsa 1.1' Malta " kif imwaqqfa bl·

urtikolu 3ta' I-At. tJ ' I-l990 dW;lril -Borsa ta' Malta,

2. Tirsir u di~po;j l:qOOjj icl gcnHal i

(i) Fdan 1· lstatul sakemm ;s,suggc u jew ir· rabta tal -klicm ma

tc ht icgx xorfo hra

"Rapprc!cntal11 Akk rcdilat"tfisscr individwu li gic 3wtoriuat

bil-mi ktu b minn membru bicx jirrapprcicRta ll fl ·aUivi tajie t liegh u

li ghandhom ~ 'j aqsmu mal-Borsa u li l-membru jaccella kull

rcsponsabbilltl ghalih u li jkun Sic aruml mi ll -Kunsi ll sabi c~

jalll'lmilha la ' rapprcicn tam akk rcdilat ; u

"I-Au"tfissc r I-Au ta' 1-1990 dwar it-Borsa HI ' Malta.

(ii ) L-ufficjali tal- Uorsa jl1unu ';-Choirm/", . il·Vitj ChoirmOll 11 1-

G .. n .. ral Mo"oger tal· Uo rs:! .

(iii) II ·General M/m/wcr ghandu jkoll ll d~w l1 id·dnnrijict li

jinghalllwlu b'dan I-Istmut jew bil·1igijiet sussidJ~l rji u ghal"lu j"gi~~i

s\::onJ id·JireZljoni gene ra l; tal- Kunsill .

) . Shu blja

(i) ls-shu bija ta l·Uorsa

ghandha

tkun

maghmula

milln

stockbrokers lic.:nzjati.

(ii) Kull kandid:Ol li jn pplika ghal dhul fis-sh llbija ghand u jnpplika

bil-mi ktub gllal1iccn~.u lill -Grml'ml M (II1I'81" fd ik iI -forma li I- Kun sill

jiSl0' minn im ic n gll:.1 imicn jislabbilixxi b "igij ict sussidjarji,

(i ii) l'!add ma jl1un I1walifikat li jillghnm liec nza bicx jahdcm w' " .... hr~,

slockbrokrr Sl l1c mm

(a) ma jkl,lIn , fi l-fc hma t31- Kun sill , pcrliuna sewwa u xiHqa

biex ikollh a dik il -lire nz"

(b) IllU jiddcpoiit3X dik I-obligunjonifdak I-indc nni z li I·

Ku ",ill jista' jistabbil ixxi fil -ligiji ct sussid jllrj.

li da l-{)bbliganjonilin lkn ni1. ghand u jig; slabbili t fa mmont li

jkun indaqs glial ku n 5Iockb,ok", . b'dak il·mod illi ,. Ku nsill jista'

null i micn jibdd I-ammont la' I·obbligaujonilindl'nniz hek k kif

jid hirlu xieraq, u jagtlli. mela da k I' ammom jilgholla. mill·inqas

tle lin jum li mmulhom 5/ockbrokl'fs liee nzjali iko llhom imien

Slbiex ji kk onfonnaw ru hho m: u

(c) nm jko llux dl.wk il-kw,llifiki ' .ohra li ,iSlghu minn imicn

ghaJ imicn jigu slabbiliti pcrmel1. w'ligijict sussidja rji,

Hckk kif il- Kuns ill jire;evi applikazzjoni ghallk'en~a , huwa

(IV)

ghandu jisla bbilixx i data me1 a jkun ser jikl1u nsidra dik I-applikau.joni u.

mill-inqas sill ~mgha l q abel d ik id-data . il-Gt"lru/I/ M mr"8t"r ghandu

jwahhal a .... it m·bin' lal -Bol'lia li bi h jiddikjara J·;sem, J·indirin u

dc nalji rilcva n,i oh ra tal-appJ ikant . u jaghli d-dala, I. ma ghandhie:o

t!.;un ta' inqas minn crba' gimgh:.t wara d·dala laHwahhill a' !-avv it, SI

met" pcr~ UI1;1 Ikull tista' taghmel ~ot lO mi ssjonijict bil·miktub !ill -

K U Ilsil! dwar (!ik I-applikazzjoni ,

(v) Appli ~ allJoniJ ld !!ha l liecnz;t gha ndhom jig" ~k un,idrat i

mill- Ku nsill fid·dma s!<lbbih w skQnd il·paragrafu (iv) la' da ll I·arli ko lu

U sUSliCg",'c nt cmc nt f kulllaq!!h:. ohra ta l· K unsill !i iq is Ii t kun mchticga,

(~ ; ) lI adll ma ghandu jingh:l1 a lItc nza tllicf b·riiolul.ljoni lal-

KunsllI appllgga w b'n"lggora nz;1, \,1,' mhux inqas m;nn Ze"'s-te rl i la'

d:!",k prde nt ; u \'ola nl ;

It,!:, rhd" riioluujon i "hlOl "ik m" lisw'lIn gh,ldd :r valid,llllcnt

s;1~,' rnrn m;l ,ku ln :lppogg:.w h' mill·i nq:r s hamc, "<ni ,

(vi;) I1-Ge"~r(J1 MU/JUser Illtandu. ki f jig; diren mill- Kunsill wa ra

li jiuiehcd dak il,vol. jinfo rma lill-applikam bi l-mikl ub bid-dctitjon i

uII-Kuns ill dwa r I-a ppli kanjon i ticghu . Ma' I- ghoti Ill' d ik il-hce nza

mill- Kunsill il- k;,nd idat isir mcmhru tal-Bors.:..

(vi ii)

II-K unsi ll ma jcnl'ltiegx jaghl i ragun ij ict ghad-decitjoniJict

licghu.

(ix) Meta lin<'a llad appli kaujoll; ghall -ghoti ta' lib.::nza , I·

<l pptikan l ma jislHx jl" rga' japplika gltal 'iccnta qabc l I-iskadc nza w'

[!lax-i' xahar kalcnda rju mid-d ala l a ' cli k ic-eahda.

(x ) Kull rnin jinghata litenza k.i( imse mmi q abc l ghandu

jiss upplix xi lill -Gel/all l Munager b'indiriu ku m m er~jali f M alta. 'i ma

jku nx numru ta' k3Zclla poslali (1'.0 . Box No .). li fi h li nl baghal ku ll

~omm unikaZ7.jo"i u k orrisponde n~a . JI -membri ghandhom jaYiaw li ll-

Gmt'ral M llnager b' kull li bd il fl- in dirizz.

(xi) Membru jisla' jahtar rapprezen tanl akkrcdil<lt .... bicx

jinnegmja fit-Borsa u da k il-membru jkun respo nsabbli ghal. u marbut

b' kllll at! Jew o missjoni w' dak ir'rapprei:e nla m fl -aUi vitajicll ieghu li

ghandhom x'jaq)m u mal -Oorsa.

(xii) Gh andu jinzamm mill-Gf"" fml /l1WItl /;'" RegiSlr<l la'

memb ri U la' rapprd:cnla nl i akked it al i mmk ien ma' l-indiriui registrat i

laglihom li jkun mift uh ghal kull 5pCujon kemm mi ll ·membri u mill -

pubblik u mal ul is-sighal norma li t3x-xoghol.

(xiii) (:.) fo.kmbru li jixlie,! Jirnzcnj:, s-~hubij ~ li .. ghu ghandu

jaghm.:1 dan bil-miktub II I1 ·Kum;iII li ghandu mi nllufi h iwahh,,1

awit dw,1T d:m m <l l-~I fejll MlII U jilwa hhlu aV\' ii i fir -bin i 1<11-

l3or~a .

(b) K ull j/ockbr%.'r. m,lglld lld d" k i I-mc .nbru I i jkonu hs ieb

jirri1cuja. ghandu ~a ,bk il.-Zm ic·n li jbt,,' jigi 'I" hhili l fil -rigijicl

'<Woidj'''ji. jinforma liII -Kun.iII UW,IT kull dehilu . obhligaujoni Jew

irhi. ic hor pendenti I .. I-membru li jkollu hsicb li jirriicnja u dW<l r

kul l 11C);"zj,lT 11 Ir:m "II.zj<l"'jict [X' ndc nl i li dwarh"m ji'la' jktl ll u

intcrc)" rdak li gha ndu x'ja'l,am 01,( I-:.I\ ivil<ljie t licgll u bhala

Jll('mhru lal -Ho"" . D"k I-:twit ghand u jihoqa - ml'o'ah ll al gh:,1 d"k it-

imic'u h )i,.,, · ji";i , ["hhlll1 fiI - hgIJI~1 ,u»idj"'Ji.

(cl

Minkcjja r-ri1.c nja lic'gll u SIQckbro/;t'r ghalldu jih<j'"

respo..'lI~a bbti gll .. t kul! ()hblig;.njoni u p:t~siv l icghu l ah l dan I-An

sak e mm il- K uII_,,1I 11\" jk unx hcbu lII i n nhtlln bil- mik tub .

(xiv ) Ku l! mill iku ll i,riJ:C IlJU ~-~huhij" It cgh u jblil' ]crj;a' jal'plib

mil! -gdid hicx jid" ilh hal III T:I: di k I-app li ka zzjuni mi ll -i;d i<.ll k UI1 'U ~C!1 "

met;, Iogi luc.:"nl:t!;! ghaU -k" ndi1J.jnn ijicl "pp liLthhl i ~h a,-,h uhija ",'

mcmhn g""t<la Ehda ;.ppltb7.zJ"nl I-hal dik m,. !1i;i H,un"ldl .,la mill-

KIII1,ifl .p l'Cl l-i,k;.,lc nz,. la· Se n:! mid-d al a (ar -rt f ,·II]a .

4. Protedun l>i uiplina rja

(i) (a) [kun id-dmir tal - Kun s,1I Ii jwcnaq fis-schh l-lstatU! u I·

ligijiet sussidjlUji u li jassigura ruhu Ii jkun hcmm konformitll

maghhom mill-membri.

(b) Kull mc mbru lal-Kunsill li di rcnamc nl jcw ind irellamcnt

il..ollu x'jaqsam ma' xi haga IIt kun qcjthda tigi diskussa mill-Kunsill

ghandu jinin mis-se<iu ta tal· Kunsill mcta di],; il· haga ttun qicghda

ligi di skussa jcw dcCiia u rdak il·ka! ghal kullllni u ragu ni I-Kunsill

ikun m;lghmul mill -membri l-ohra kollha.

(t) [d -deCiijoni dwar jckk mcmbru tal - Kun sill ik ollux

x·jaqsam dircuamentjcw illdi renamcnt rxi !'I aga bha l dik . ghandha

tkun csklussivamclll dik la l-mcmbri I-ohm tal- Kunsill b·eskluijoni

la - dak il-mcmbru.

(ii)

Meta I- Kunsill jistabbiliui li membru

(a ) jkun naqas li jikkonforma ruhu mol' 1· [slalul jew mal- ruIIu .... • ~I" .. u'

Ligijiet Sussidjarji: Jew

(b) jkun Ilaqas li jikkonfurma ruhu ma' XI detiijoni tal-

Kunsil1: jew

(c) ma jkunx agi~~ a b·mod se_a u xier"q b·de trimenttal-

Ilorsa. lal-membri taghha jew tal·pubbliku in gcnc rall: jcw

(d ) jku n gic ggudikat f:,Hu t; jcw

(c) jkun instabha li 11,· xi rcalli ghandu ~ 'jaqsa m mal-fiducja

pubblika : j{'w

jkun gic intcrdcu.fc:w inabi lil

(f)

il -Kunsill ghandu jaqtaghha liema anjo n; (maghduda I-tk{'ccija. is-

5OSpCns;oni_ Jew I-imm ult:lr) huwa ghandu jichu dwar dak il-

membru .

(iii) (a) Rizolu7.7.joni ~ kol1d il-paragr .. fu (ii) I:' · d;lIIl-Arlikol u I;

Iklln dWllr il -tkeUija. is-~ospc n sjoni jew I-immll!!ar tu· membrll

Icnhlieg i-:Ippogg hi· mhux inqas minn lc wg- ICrl. i lal-mcmbri

prcicllli tiI -la4gha .

(h) b.-s.,spensjo ni ",s·shubija ghandha tkun gha l dak il-

pcrijodu li ma jkunx 13' itjed minn se na b·dan iIIi din is-Ml!ipl'ns;oni

tkun lista- liggcd<lcd gha l mgun, lajha u suffitjc nli li I-Tribuna l. fuq

1:,lh" tal-Kunsill ..... <11,' li jkun )<! ma - li ll- mc mhru Ml!ipit. jist,,· iq is

xie l<l 'llic-Cirkostunzi I ;, I - k a~. Mulul dak il-perijodllla' suspensjo ni

1-!11cmhru s<>spii 111:1 ghllndllx iko mpli sejje r hl-:Lui,·itil. la·

.l"ro.-/;/>r"kt'f. Awiz I:tHkcUij<t j~w t,'s-so~p~n~jofli I,,· mcmbru

gh:l1ldha ",influtih tilwlt hh al mal-p<.>s1 kj n soltu jilwahhlu avvi:i:i lil -

hilli t:l1-liofS:l .

(c) MCla Slockbrok er ikun irri ~c nja. Ikecta Jew gi" ggudikat

f~nul

jew ;nslab tlat; IU' reat I; ghandu x'jaqsam maHiduCja

pubblika. Jew fil ·hi I; jkun Aie interden jew ;nabilit. u ma jkunx

jista' jhallas il-passiv liegtlll I; jkollu ma' membri shab ohra Jew mal-

Bo rs:1. il-Kunsill ikollu s-sc tgha li jzornm Jew jirrikjama 1·

obbligau.joni li lkun giel dcpoiitala skond is-subparagrafu (f) tal -

par:.!;r;,fu (ii.) taL-Artikolu 3 ta' dan ,· lslal U\ U li jghaddi dawk ,I·

Bus jew a mmonti ohra I; johorgu mi nn d,k l-obbligazzjoni fdik iT-

rit.crva Jew kOn! ichor li J· Kunsill iq is xieraq u I; juZa dawk iI -llus

koll ha jew p;.rti mi nnho lll sabiex jillikwida '-passiv la' da l< il -

mcmbru fil-konfront la' rncmbri shah o hmjll iew lal-lJorsa.

magnduda t u1l mul la m .... ahhla bis-s.ahha tal -paragrafu (ii) la' dan I-

Arlitolu u t ull ma jibqa' tcjjed, jett jibqa', ghandu jinghm3 Iura

liII-mcmbru,

( i~)

Id-d ispoziajonijiet tal -paragrafu (ii) ta' dan I-Artikolu

ghand hom japplihl" mlt/(J(iJ muumdiJ ghllr'rnpprcknlllnli atk redi lali ,

u null kat hll al d:lk il -K unsill jista' jichu kull anjoui mscmmiju n-

imr.cmmi paragrafu dwar il-mcmbru u r,rapprci:clllalll akkrcd ilat

licghu u null k:a bh al dak il' K u nsill jisla' jiSlabbiliui li dik il-persuna

ma ghandhiex lagiui la' ra~ctc n1an1 akkrcdila l ghal xi mcmbru ic hor

ghal dak il-pcrijodu li liSla ' Iqis xic raq,

(v) Mcmbru jcw rapprei:c ntam akkredi lat, li I-kondoll a lieghu

Ikun 'licghda liti invcsligala mill -Kunsill, &haud u jinghala I-

oppon unilil li jinslema' jil kcllcm mill- Kunsill b'difi t" tieghu nni(su.

(vi) Id ,dctifjo ni li liUie hed mill- Kunsill skond dan I-Artikolu

Ikun wahda fi na li.

Kunsi lt

(i) II -Kunsi ll imwaqqaf bis-sahh a ta' I- ~rti kolu 4 ta ' I-AII ghandu

jint ghamcl skolld il·pa ragrafi li gejjin tH' dall I-Artikolu ,

(U)

II-Ministru jahta r wiehed mill·mcmbri tal· Kunsill biex ik un

Chllimllm,

(iii)

II-Kunsi ll jintghamel mill·mcmbri li gejjin

(a) membru nomin a! mill -Bank Centrali minn fost I-uffieial;

anzjani ticghu

( b) e rba' mcmbri Ii jinhatru mill-Ministru minn fosl pel'l'uni

ti, min h ~bba tkspe rjcnza taghhom fat ti~itajict kummerl:jali.

rlll"lIzja rji. fxi professjoni jcw studj u akkademi ku, m- fchma tal-

Ministru jkunu xie rqu sabiex hekk jinhalru : u

(t) Iliet membri o hra li jitu clett i ta' t ull se na mill· membri

lal·Uorsa u min n fosthom Sless

I td~ sa dak ii-t.mic u li I-Minisl ru jisla ' jiSlabbiJixx; b·a~\ii.

d Jlwk it-ll icl mt'mbri l--ohra jinhalru mill-Min ist ru mill n persun i li

jkoll hom i l-kw~ lifi k i slipul ali fis·subp;lragrafu (b) ta' dan il-

paragrafu,

(iv) B'tieda mal-membri msemmija qabd il- Ku nsill jista' jag.h1cl

mhwc iktar minn t.cwg penuni ohra s.abie:x. ik un u membri tal- Kunsill kif

jista' jidhirlu spedjenli.

(v) Il- Kunsill jeleggi wiehed mill -membri tiegflu bl'lala ViQ

Chairmun u dan jaghmilha la' cJwirmQIl lin-nuqqas tat·Chairml.lll .

(vi) Il-membri lal- Ku nsill ghandhom jibqghu ti l-kariga gbal z",ieft.ol.karip.

perijodu ta" mhwc iklar minn Iliel sDiD l'IJief ghall-mernbri elctt i li

jibqgh u fil- kanga ghal zmien sena.

jahtar Gmuo/ Managu I; jkun

(vii)

Il-Ku nsill

ghandu

responsabbH gl\at-Imcxxija la' kuljum tal-Borsa skond il-policy

stabhilita mill-K uTlsill .

(viii)

L-deujon i tal-membri etell; taJ -Kunsill gband tla tltme.oa !lieujon;jie' .

kif gej

(a) J-e leujoni ghandha ssir b'vol sigrict rluqgha specj~li li

ssir skond rna he mm fis-subparagrafu (a) tal-paragrafu (iv) ta ' 1-

Artikolu 6 ta ' dan I- Istatut;

(b) s/(x;kbrokers liCcllzjati I. huma eligibbli ghall-eleujoll;

fil-Kunsill hum a dawk li isi mhom jid her fuq ir-regislru tal-membri

fdata mhux inqas millll tleti n jum qabel id-dala tal-Iaqghn ~pc~iali

li fiha jkollha ssir I-dezzjoni tal-memhri lal· KulIsill u li ma

temmewx milli jkunu s/(xkbrokus lice llzjali fil-jum meta ssirdik it,

laqgha;

(c) nom in a7.2:jonijiel ta' kandidati ghall-cleu.joni fi l-Kun sill

ghandhom isiru bil- miktu b U juru bi~-taJ x'ikun jismu SIIxkbroker

propost ghall-eleujoni u jkunu ffirmati mill· inqas minn kwg

stockbrokas licenzjat i ohrajn li jkullu jahdmu 1· 8 01'$8. li jiffirmaw

bhala proponent u sc kondan l , u liema nominaujonijiel jigu

kOlltrosenjati fuq wara minn mill ikun q ieghed jigi nominal, 11·

formoli ta' nominazzjon i debitament mimlijin ghandhom jigu

konsenjali !i ll-Gcncrol MOl/oga fi l-bi ni lal-801'$8 mhull inqns minn

tlelill jum qabel id-data lo l-Iaqglia, I1 -G .. n .. rnl Monoger ghalldu

jiehu hsieb li isem kull stockbroker liCenzjat proposl ghall-eltujoni

fil-Kunsill u isem il-proponenti u s-sc: kolldallti taghhom ghandhom

jitwalili lu mal·post rejn soltu jitwahhlu I-awi!i fil-bin; la l-SoI'$8.

(ix)

Persuna ma tibqax iklar membru tal-Kunsill rdawn il -kati li V.hom.

teii

in

(a)

mar-riZenja taghha li linghala lill-Minislru bil-miktub;

(b) jekk ma tibqall kwalifikata ghall-hat ra. nomina Je w

eleu.joni (skond il-kat) bhala membru tal-Kunsill ;

(c) fil-kaili tigi ggudika ta fallu ta jew tinstab haljo ta' real li

ghandu lI 'jaqsam mal-fidutja pubblika;

(d)

fi t-kaili ligi interdetta Jew inabilila;

(c)

mcla persun a litu n asse nti b'mod mhux gustifi kal minn

laqgh~ t tal- Kunsill ghal Iliel da rbiet kon sekuuivi_

(x) Ebda me mbru tal-Kun sill ma gIIandu jingicgl'lcl jillaq il-

ku riga ticgbu minhabba biss li huwa jkun membru , direllur jcw uffifjal

la ' xi kumpannija Ii Ikun gbam let xi ituntrall mal-Dorsa jcw xi xoghQl

gha liha , iZda mcmbru laI-KUllllill ghandu jirrivcla kull imeres:o; personali

licgh u f kull transanjoni jcw kuntratt u ma jiSlax jivvola dwar xi

kunl ralt jew xogl'lol bhal dak. Membru lal-Ku nsi ll li jikser dan il-

paragrafu jisla' jilnel'll'la b'ordni tol -Min istru u jkun rcsponsabbli sabiex

jikkompcnsa liIl- Borsa ghal kull telf ikk awtal bl-agir tieghu b'riiultat la'

dok I-all ,

(x i) Mal -grajja la' xi l'I aga msemmija fil-paragrafu (ix) la' da n I_

Anikolu, il -Kunsill gl'land u jiddikjara s-siggu ta' da l< il-mcmb ru

"akanti.

(xii) Mela jkun hemm xi .. aka nza katwaJi fost il -me mbn eleUi jcw

il-membri l-ohrajn lal-Kun sill, dik il-vakanza katwali ghandha I;mlela

b'l'I al ra li ssir mill-Ministru la' pc rsun a ohra li ghandl'la (ihqa' fil -ka nga

sat- temm tai-tmien ta l-kanga la ' da k il-me mbru no k min ikun inflalar

IMa fej n il-persuna li Ikun vakat postha Ikun t iet nominala mill -

Bank Ce ntrali daD il-posl ghandu jerga' jimleia mill -Ba nk Centrali

sko nd is-subparagrafu (a) tal-paragrafu (iii) ta' dan l-artikolu u fej n il -

pcrsuna li livvaka poslha tkun giCI delta skond is-subparagrafu (t} ta' \-

imsem mi paragrafu , il -Minililru g/'Iandu jahlar stockbrQku bie~ jimlu

poslU .

(xiii) kull mcmbru lal-Kunsill gh andu jkollu vot wiehed biss

flaqgha tal-Kunsill , hli ef ic-Clmim'l11l u I-Vi~i -Chl1irman fi n-nuqqas

la(:'-Chairmall. li jkollu vot onginali u casting Ito/e, Id-deCi:i:jonijict lal-

Kunsill ghandhom jiuil'hdu pcrmcu ta- maggora nza sempliti sakcmm

ma jigix pro~'dut mod ichor !1-!stat ut.

(xiv) k-Chl1irmall u I-membri lal -Kunsill ghand ho m jithal1su di\;.

ir-rimu nerazzjoni I; tisla' tig; appro .. ata mill- Mi ni stru . n-Ku nsill ghandu

jiddc~ied i xi Ikun ir-rimunerazzjoni tal-General Manager.

(~v) Kull membru lal-K unsill g/'Iandu jigi ilKknnizzal mill-Borsa

ghar- rig .... ard la' kull pass,v, spejjd. (ci f u inficq 11 dwarhom kun

mcmbru tal- Kunsi ll jista' jidhol rcsponsabbli dwar kun haga li ssir in

bona {ede minnu fil- (welliq ta ' dmi rijiclu bhala mcmbru lal -Kunsi1l

IMa cbda mcmbru minn dawk ma ghand u jafutt a responUbbilill't

minghajr I -awloril~ lal- Kunsi ll _

6. Laqgl'lat lal-KunsJ lI

(i) 11-laqgl'lallal· Kun sill ghandhom jinfamnlU fd~wk il-grllnet u

fdawk il-hin ijict u p0Slijil'l li c.-Chairmall jisla' jislabbiliui minn zmicn

ghat zmi en b'dan illi I- Kunsill ghandu jiltaqa' mill -l nqas darba fkull

xahar kalcndarju .

(ii) Gh andu jingl'lala awit bil·mi klu b ta l-jum, [)OSI. hin u age nda

la' laqgl'l a mi ll -General M anager lil kull membru mill- inqas gi mgha

sfliha bil-quddiem.

(iii) !I -quo,un! tal-Kunsill biex jibda jitlralla l-age Jlda jkuJl ta'

ha mes membri. Je kk jigri metajitlaqqa' l-KuJlsill li n-Jl umru tal - mcmbri

tieghu prdenti glial xi raguni ma jkunx bii.Zejjed biex jifrorma quo,um ,

il -laqgha ghandha tigi aggo rn ata gh all -istess jum tal-gimgha la' wara n-

istess hin u post, Jew da k il-jum, hiJl u post ichor li c-Chairmarl jista'

jistabbilixxi ,

(iv)

(a)

La qgha speciali li tisscjjah mill-Kunsill ghandha

ti ni~ mm mhux ~klartard mill-31 ta' Ma rzu ta ' kullsen a finamiarja,

lc-Chairman ghandu fdik il-laqgha jaghmel ir-rappon tieghughas-

sena fin~ntjarja ta' qabel u jissotlomctti I-kootijiet ve rifika li tal-

Dorsa ghall -approvaujoni tal,laqgha, Slockb,olr.~r$ liCenljati

jattendu gha l diJl il-Iaqgha u jeleggu minn fosthom ir-

~apprctentanti taghhom fil- K unsill, skond dan 1-lslatUI.

(b) Laqghat spetiali ohrajn tal- Kuns;lI jistghu jissejhu mic,

Chairman b' talba li ssirlu bil,miktub minn mill-inqas tliet membri

tal -Kunsill u ghandhom isiru fi tm ien gi mgha minn mcla ssi r dik il-

talba, Ghandu jinghata avvii. bil,miktub ta' laqgha spctjali bhal

d ik, li fi h jissemma ghaliex Ikun qeghda lillaqqa ', mill·Genuai

Managu lil kull me mbru tal- Ku nsill mill-inqas tnejn-u-sebglii n

sicgha qabel il-ium stabbilil ghal dik iI-laqgha.

(v) 11-Kunsi l1 ikollu s-sc tgha. 5alvi d-dispotizzjonijiel la ' 1-b tatut. I'rOO<d;monli,

li jistabbi lixxi I- Iaqghallieghu stcss u li jirregola l-proeedimenti tiegbu

innifsu ,

7_ .-hl"'»

<i) l1 -foodi lal· Dorsa ghandhom jintammu fdawk il-bane k li 1-

Kunsill jislabbilixxi min n trnicn gha] trnic n, Kull cheque mahrug in

akkonl lal -Borsa gltand u jip ffirmat minn dik il-persunajcw pe rsuni li 1-

istcss Kunsi ll jiSla' mi nn 1micn ghal 1micn jislabbilixxi.

(ii) Jd-dhul u I-proprjcttl tal-BOI'sa ghand hom jint u:i:aw

uni kament ghall-promozzjoni ta' l-oggettivi u n-interess tal -Bursa he kk

kif iJ- Kunsi l1 jista' jislabbilixxi,

(iii) II -Kunsi ll gha ndu jichu I'Isieb li jiniummu sew kotba tal -

ko nliiiCI dwar

(a) kull ammont la' flus imdah hal u min (uq mill-Dorsa 11 1-

hwcjre& li dwarhom dak id-dhul u nfieq is;r

kull xiri 11 bcjgh Ii jsir mill -Oorsa: u

(b)

(c)

I-a ni v u l-p(lss iv tal-BoTSH,

(iv) G ha ndholll jintummu kotba tal -kontijiet dell aljati 5abin

dawn jaghl u viljoni vera u ca m ta' I·an iv i'~ tal·Uorsa 11 s.:lbicx iispjegaw

il- Iransazzjonijict taghha.

(v) Il-kotba tal -kontijict ghandhom jintam mu fl-UHi~u

Retistrat tal-Borsa u gllandhom ikunu dejjcm miflullin ghall-ispcujon

tal· membri lal-Kunsill , u hckk kif il· Kunsill jisla' minn tmien ghal

tm ie n jistabbilixxi ,

(vi) L-uditu ri gllandhom jinllatru ta' kull sc na mill·Kunsill matul

il-u,qgha Specjal; msejlla skond is·subparagrafu (a ) tas-subart ikolu (IV)

tal·Artikolu 6 ta ' dan 1·lstalul u b'dik ir·rimunerazzjOfJi li jiftiellem

dwa rha I· Kunsill.

(vii) L-ud iluri tal·Borsa ghBndhom jcdd jattcndu kull laqgha

specjali u jirticvu kull avvii ta ' laq gll ~ specjali, u kull komunikazzjoni H

gllandha x'taqsam ma ' dik il·laqglla. li membru t al · Bo~ jkollu jcdd

jirCieYi, u li jinstc mghu rxi laqgha speCiali li jallclKiu ghaliha dwar kull

lIata li tigi diskussa fiI·laqgll a sakc mm din Ikun la' interess gl'lalihom

bhala udilUri.

FDnd ta ' Kum~ns

8. (i) Il -Kunsill ghandu jislabbilixxi penncn ta' ligijiel sussidjarji

Fo nd ta ' Kumpens bil-gl'lan li jassigura $-sigu rtA la' lransazzjonijicl fiI ·

Borsa fiI·kat li ~i membru jkonu d iffikul!~jie t finanzj~rji bie~ iwe ttaq 1-

obbligazzjonijictticghu mal·pubbli ku invcslitur.

(ii) Dak il-fo nd ikun rego lat b'da k it· mod kif jista' jigi provdut

b'ligijicl sussidjarji.

Mgl\ oddi mill· Kam ra tad· Dcpu tati fis-Seduta Nru. 432 tat·3O la' Ottubru, 1990.

L AWREl'CE G ONZI

SPf'(l/l;u

P. M USC04.T TERRIHII. E

Skriv(ln /(l/·Knmr(l lad· D tplllnl;.

in terprcla tion

PA RT IJ

Const itutioon . FUl1(Ctions and Comp05ition of the Exchange

Establi$hmen t of the Exchange

CouJlcil

FUJlctions of the Council

6. Mcmbersh ip

Funxjonijict tal -KlIn sill

6. Shubija

Stat ut e and Bye-Laws

Am end ments to the Statute and Bye· laws

Authorised persons to act as stockbrokers

Suspension and revocation of licence

Tradillg outside the E:l(challge

Confidellliality of Exchange information

Agreemen ts made by Of" through un au tho rised per$(JDs

TribLlIlal action to prcvent contraventions

No cnquiries 10 be made into the affairs of any individual trading o n the Excha nge

Ebda investigaajoni ma ghandha ssirdwar ind ivjdv.·u Ii jinnegozja fil-So"",

Inspection of affairs o f the Exchall ge

Invcstigations into insid er dealing

Pen alties for failurc 10 comply with provisions of !iCction 17

Penalties in COll nection with inside r dealing contraven tions

PA RT III

The Malta Stock .~changt Tribunal

Establish ment and composition of th e TribLlnal

Remuneration of members of the Tribunal

22. Powers

Tri bunal to deal with cases expeditiously

24. Procedures

Sillings to be held in public

Functions of the Tribu nal

PART IV

Financial Pro>'lslons

Capital alld Financiall' mvision

Annual aCCOUTlIS

A

PART V

Mi!iCl'UantQus

Non applicability of Rc gu lution 13 of Comnlercial Partnerships Ordinance

Temporary suspension of operations

Exemption from income tu and duty on documents

Exemption from Section SS of the Central Bank of Malta Act

Licence of Ce ntral Bank for a person toa't asa financialronsul1ant and adviser

Po .... ers of the Central Ban k to dema nd information re la tive to li co;lnscd

stockbro kers

Po .... ers of the Central Bank relative to fin ancial consulta nts and advisers

Pe nalty for acting as fi nancial consultant o r adllise r without a licence

Other Laws

SCHED ULE

T HE STATUTl

I.

A pplicabllity

2. Intupretallon and General rrn"isions

J. Membership

(i) Members

(ii) Application

(iii) Qualifications

(ill) Notification

(,) Conside ration

(vi) Voting

(lIi i) Acceptancel Rejection

(lIiii) Disclosure

(ill) Rejected Applications

(.) Registered Addresses

(lli) Accredi ted Representatille

(xii) Members' Register

(xiii) Resigna tion

(xiII) Re·admission

Diso;:iplinary Procedurt'

4. (i) Enforce mentof theSta tu te and Bye·Laws

(ii) Penalties fOT faili ng tooom plywith SU,tut c and Bye-ulws

(Hi) Disciplinary Proced ure

(ill) Accred ited R' present at illes

(11) Defe nce Rights

(vi) Decision Final

A

Council

5. (i)

Council

Chairman

(ii)

(iii)

Membership o f the Council

(iv) Co-opted Members

(.) De puty Chairman

(vi) T erm of Office

(vii) General Manager

(viii) Elections

(ill) Vacancies

(.) Persona l Interest

(xi)

Removal

(xii ) Casual Vacancies

Voti ng

(xiii)

( xiv)

Remuneration

(xv)

Indemnit y

6. Council /I1t'd ings

(i)

Freque ncy

(ii)

Noti ce

(iii)

Quorum

(iv)

Specia l Mee tings

(.)

Proceedings

7. Fln.~

(i) Funds

(ii) Income

(iii)

Prope r Booksof Accounts

(i. \ T rue and fair view

(.

Place whe re Accounts are kept

(vi)

Appointment of Auditors

Rightsof Audiwrs

(vi i)

8. Compensation Fund

(i)

Estab lishm ent

(ii)

Const itu t ion

1 assenl .

CARMELO CARUANA

(L .S.)

Acting President

13th Novembe r, 1990

ACT No. XXXIII of 1990

AN ACT to tstablish the Malta Stock Eicchallse and to re8ulate il$

fu ncriollJ, la provide for orderly tradin8 in securities IInd la provide

for nUll/en anci/fury or inddentaltherela or connected therewith .

BE IT ENACTED by the President , by and with the advice anu

oonsent of th e House of Reprcsentativ~ , in this present Parliament

assembled , and by the authority of the same, as follows:-

PART I

~Ii minary

I. This Act may be cited as the Malta Stock Exchange Act. 1990.

and shall come into force on such dale as the Minister of Finance may

by notice in the Gazette appoint. and diffe rent da tes may be SO

appointed for diffe rent provisions and differcnt purposes of Ihis Act.

2. In this Act and in the Schedule the reto unl ess the cont e ~t

o therwise requircs;

"Borsa ~ means the place wh.c re the EJcchange is esta blished

by the Council for the purpose of ilS business;

"bye·la\\IS~ means the bye-laws made in lerms o f section 7 of

this Ad ;

"Central Bank" means the Central Bank of Malta;

"company ~ means a limi ted liability company. constitut ed

and registered in Malta in accordance with the Commercial

Partncr.;hips Ordinance and which is not . in te rms of the sa id

Ordinance, a private company;

"corporale body~ means a corporation set up by any law in

Ma lta

"council" means the Council of the Exchanllc establi shed by

sectio n 4 of Ihis Act

"Excha ngc" means lhe Malta Slock E;<change. establi shed by

seclion 3 of this ACI;

"Financial Year" means <my period of twelv e mo mhs e nding

On Ihe 31s1 Dece mber. provided Ihal ",ith rega rd to lhe Cl ... t

Financial Year Ihis shall be a period of nol mort Ihan 1'o.-cnly four

months end ing on the 31st Dece mber Orlhe second year following

the sell ing up of the Exehangc

"Go vernor" mC;Ln$ th e Gove rno r of the Cem r,ll Bank;

"Individual con nected with the company" means an indi"dua

who is either

a director Ofl11;11 companyor a relat ed co mpan y. or

(i)

(i i) who is an ortic<:1 or cmployee of that company or

rellllcd company. o r

(i il) ()(cup ies ;L positio n in~olvin g ([ ousi n cs~ (If

professio",,! rela tion ship o.; twecn oimself. his e mployer, tIr

a com pany of which he' is ;I director. and Ihal com pa ny or

rela ted company. or

(iv) a pub lic officer acquiring infonnatio n in " n offici;,[

c:Lpacity

"Insi der Dealing'" means dealingi n sccuritieson the Exchange

on the basis of inside, confide nt ial and price·sensitive informalio n

acqu ired from o r by any individual connccled with th e compa ny to

which th e informmio n refe rs. whether lawfully emi t led 10 such in·

form(lti on or otherwise. irrespective of ho w he came into posses·

sion of this informalion, and used by any person with the view to

make a profit or lake any o ther advantage;

" Inspector" means an inspector appointed under :.<'ction 16

of this Act

~ M cmbersM mea ns the membe rs of Ihe EJcchange in lerms of

s«tion 6 of Ihis Act

"Minister '" means Ihe Mi nbter re sponsible for finance

"Order ly" me:ms the due neeution of tran~~ct ions in

a«Ord:lOce wilh the dealing rules and wi lh proper rega rd 10

equit:lble trcat me111 of users :md p~T1icip:l nlS in th e nwrkcL

"Ouoted Company" mean) a company who~c ~corit ie~ ha\e

\x'e n :Id milted 10 dealing on the Exchangc in accord;lt[cc "'ith Ihe

listi ng requi rements. as may be specified in the Bye· Laws

" Related com pany'" in relntion to a company . means any bod y

corpor~t e which is th:11 company's subsidi ary. associa ted o r holdi ng

oomp;"ln y. or is the manager of or managed by, o r is advisor lo o r is

advised by or ot herwise coolrolsor iscon trolled by Iha t compa ny or

a subsidia ry or associate of thal compan y's holding company

"Securit ies" means sh3rell. stocks. bonds. debe ntu res and

ot her like inst rum ents denoting ownership of or creating or

ack nowledging indebtedness by a com pany;

~Spccial l nspcxtor" means a speci:II inspector appointed under

sect ion 17 of this ACI ;

"Statute" mea ns the statu te of the Exchan gc made in tcrms

of section 7 of this Act

"Stockbrokcr"" mea ns an individual who is c;.rrying 01,11 the

funct ions of a bro ker for the purchase Or sale of securities in terms

of section 9 of this Act;

"Trading" means the aClivity of buying and selli ng or

securities; ~nd

"Tribunal"' means the T ribun:,1 cst:.blishcd by sect ion 20 of

thi s Act.

PART 11

Constitution , ~'uncl ions IInd Composition of thf' ":~chang ..

J. (I ) The re shall be a co rpomtion 10 bccallcd lhe Malt a SlOck

Exch ange for the pu rposes. ami havin g the powers 1IIld functions as se t

out in this Act.

(2) 1nl.' Exchange sha ll bc a body COrpOftlle ha ving a dist iJlCt

legal personality and shall be capable, subject 10 the provisions of this

Act and of the Statute. of e nte ri ng i nil) con tracts , acqu iring. holdillg and

disposing of any prope rty for the purpo:;.c of ils funct.ons. of suing and

being sued, alld of doing all such things a mi en teri ng into all such

transactions as are incidental o r conducive 10 the exercise o r

perfor mance o f its (unctions under this Act.

(3) Subject to the provisions of Ih is Acl the Exchan ge shall

have the sole and exclusive authority ill M3!ta

~nd

( 3) 10 provide facil ities for the pu rchase

sa le of

SC(:urit ies

(b)

to provide thc place to be kn own as " the IJorsa" wh ich

(i) ~h:. 1I be lhe udu~i ve place for the m,d ing o(

securities o( quoted companies nnd Ctlrpt)r:!lC I>odics as ma y I .....

prescribed in the Bye- Laws; and

(ii) shall be th e place in which securit ies issued by or

guaranteed by th e Govern ment of M311a m~y be n aded

Provided that. >oCcu ri tic ~ iss ued hy or gua ranteed hy th~

Govern ment mny also he traded out,ide the Exch ange as the M'ni~tc r

m" y Oc te rmin e.

(4) Th e legal and judici:" r~prescnta t i"n of the Exchan ge

slt:.11 he vntcd in t he ("ha ir",:, n "r I he (""" IIl·il.

4. (1) 'lbere slla ll be a Council of tile

E~clla ngc

for til e Cooncil

managc me nt and c()Ilduct of its business.

(2) Th c Cou ncil shall consist of a Cha irma n and suc h othe r

memOc I'j of the Ci)lJncil who may be appoin ted. clecu:d o r co·opt ed as

may be prescribed in tile Stat ute.

5. Withoul prejudice 10 an y other power orfu nct ion confe rn"d on

il by thi s Act or by any o th er law. tile Co uncil shall bl! respo nsibl e fo r

ilnd halte the powc rs and function to -

(a ) mainta in IlIe highest ethical standa rds in the ::ondu ct o f

business in the Eli:change or in conncction therewith ;

(b) grant a listing on the Exchange in respect of stocks.

sha res and ot her securi ties and to promote and susta in an orderly.

equi table. and Itisible securities market

(c) proltide facil ities for tile purcllasc and sale o f stocks.

slla res and olhc r securiti es

(d) facilita le tile now uf saltings imo produclive enterprise in

accordance with and in supporl of natio na l policies;

(c)

I! ncourage a witlc r spread o f securities own ers hip

keep under reltil!w the eltolulion of practices in th e

(f)

nllLrkct

(g) regulat e tradin g in Ih l' Exchan ge. to maintain disc ipline

I he rein ani! in pa nicular 10 in cest igall! cases of a llegcd misconduct

by any person tra(ling in scruril ies

(h) e.lub lish and maintain codes o f conduct to be fol lowed

b}' mcmbcrs

(i ) ensure' Ihat Ihe mimi"ion of lIo:m.cd ' Iockhrokers is

l"I'n,iMent wilh this .eclio" ,uld gellerll ll)' with Ihe proper

fu nctillning " r I he Exchange

tj) "",-'Crlain thil C memOc rlo tlpc .. uing " nche E~ehl,"ge arc fit

a nd prnpc r r'''''If1 ~ for Ihe purpllS/:,

( k) mnnilu r C"I<Jing ,md " .... · .. -'TI"in Ihal it h conducted in:on

mdcrl}' fllsllion

(I) asce n ai n Ih ~ 1 me mbc rlo have ~uch rin" lK'ial ,u pport or

!:ullTantees as are necessary 10 maintain the ir fi mi ncia l int egriC}' and

thaC Ihc y m ~ ke 11 proper scu \cmen C n f tr:UI, ,"ctions;

(Ill) horrow "ny ""II\I~~ req ui red for t h~ pu rpo~~

uf chI'

I: x~hange ,md tu grant such scm rily as Ill,1\' he re'lu ircd ;

(0) purchase, take on lease or othcrwi$C acquire ~ny

property m(>vable (>r im m(>~a blc which the E~c h~ng(' may rC(lui rc

for any of its pUTJlOSCS;

(0) $CIL manage. lease. hypothecat e. dispose of. or

otherwise deal with all or any part oflhe property ofthe Exchllll ge;

(p) in,'est and deal with monies of th.:: E~chanse in sueh

manller as it may from time 10 lime determ ine

(q) perform :,11 olh.::r functions as arc customarily perfor m.::d

by 3 Stock Exchange: and

(r) do all such other things as may be necessa ry or inci dental

for the proper perfo rmance and funclioning o f the E~change .

6. The membership of thc Exchange Sh:ll1 consist of Licensed

Stockbrokers as provided for in the Slatute.

7. ( I) SubjecllO thc provisions Oflhis ACI, the Exchonge shall

be go,'crIled by Ihe Statute as r.cl o ul in the Schedule \0 this Act.

(2 ) Sub)eel lo Ihc provisions of th is Aa and Ihe SIUlUle, the

Council shall have th e po .... er to make such bye· la,,'s not inCORsislent

wilh Ihe Act or SI1IlUlC as i1 may deem necessary for the proper

functioning of th e E~ehange . A copy of such b)"e, lawssh~ 1I be posted on

the Notice Board of the Borsa and (mother copy shall be kcpl in a book

kept for the purpose by the Council, .... hich book 5h,,11 be open to

inspectio n by the public at all reasonable times.

8. (I) (a ) The Min ister may by regulations. on th e

recommendation of the Council. ,,,Id after co nsult ation wi lh th e

Central Bank . amend. substi tull.' ur rC"oke the Fi rst Schedule to

thi s Act. For th e purpo<;es of thh par~Sraph the Council shall m~k c

its recomrncnd:,tions Ihru\;); 11 th,' Ce lllral il ank "'hich shall

fo rthWith upon their receipt \ r:, n~mit t!tu Sl1 me to the Mi nister. Th e

Minisle r may rc:-fer back 10 th.:: Counci l a ny reco mrnend;uion M)

recei,'cd (or (un her con~idc,.at."n Ioy it.

(b) Nothing in paragraph (a ) of subsection ( I) of th i,

)Cction shall precludc the Minist er. after con,ultation with th e

Central Bank . fronl referring 10 th e Council Mlcll maller)

conceming Ihe operat ion of the Exch,onge as he dee ms fit fur its

co nsiderat io n.

(2) The Il ye- Laws may be amended, substituted o r revoked

by the Council as it may deem li t. A copy of sueh :mlcndmcni.

substitution or revocat ion shall be posted on the Noti ce Board of the

Bursa and shall be kepI in IhI.: manner as is provided for bye-laws in sub-

section (2) o f section 7 o f thi s Act. Such amendments. substitutio ns or

revocat ions mlly not be retrospective. The Bye· Laws and any

amendme n t~. substitutions IIr revocat ions the reof shall be laid b~ t h ~

Minister on the Table of Ihe House.

9. (1) No person shall act as a stockb ro ker in Mal!a unless lle is Au''''''''''"

in possession of a valid stockbroke r's licence iss ued by th e Coun cil in 1""''''''' 10 ><1

"' ",,"'broKcr>.

accordance with the Statute

Provided that this subsection shall not apply to any company

licensed as an offshore company under the Malta Internatio na l Business A<I XXX IV

Activities Act, 1988 to act as a stockb roker in Malt a, provided that it <>1 19$.

trades solely in secu rit ies issued o utside Malta and acts exclusive ly on

be half of and in the inte rests of perso llS not resident in Malta.

(2) Any person who acts in contravcntion o f the preceding

subsection shall be guilty of an offe nee aga in st this Act and shall on

conviction be li able to a fine (m[.lta J of five thousand I iri or to a term of

lmprisonment nO! exceeding two years or to both such fine and

imprisonment.

,--

10. The Counc il maysuspcnd or revoke the licence granted to any

stockbroker

(a) if the holder is no longe r a fit and proper person toearry

on the stoc kbro ki ng busine,s

(b) if the holder has contravened any provisions of this

Act , the Statute or Bye·Laws or in purported compliance wi th any

such provisions has furn ished the Council false. inaccurate or

misleading information; or

(c)

any circumstances as may be provided for in the

11'1

Statute ,

11 . A stockbroker sh all re port to the E~ change in such detail.

within sueh tllne and in such manner as the Council may require any

trading carried out by him outside the Exchange in sec uri ties which arc

not quoted.

The membersof the Council. the officers and other staff CoofoocOli.i"y

12. (I)

of the Exchange and licensed stock broke rs shall dea l with all docllm<:ms or E"ha"~

and other information rclating to the Exchange or to dealings therewith ,"I,'m"'I'.'"

or therein. or otherwise coming to the ir nOli"c and not yet offic ially

divul ged, a nd all matters and thi ngs related to such documents and

information as secret and confidential.

(2) The members of the Council. the officers and other staff

of the Exchange and licensed stoc kbrokers arc proh ibited from using

such documents and in formation and all other matters which in

accordance with subsection (I) of this section they arc to deal with as

secret and confidential and which come~ to their knowledge by virtue of

their position, in order to secure a ny advanlage for themselves or for

any third parties whet her such third panics arc con nected or not with

the sec urities market.

(3) An y person who acts in contravention of subsections (I)

and (2) o f this section shall be guilty of an offence against thi s Act. ,,"d

shall on conv iction be liable \0 a fin e (mu/la) of five thousand lir; or to a

term of imprisonment not exceeding two years or to both such fine ,IIld

imprisonme nt.

(4) An y person other th .. n those mentioned in subsect ions

(\ ) and (2) of this sectio ll. who acquires any documents or any other

informa tion to which the said subsections relate and who uses suc h

do<:ument~ or informalion. wilh intent 10 secure advanlage either for

hi mse lf or any olherpersoo . shall be guil ty of a n offence againsl this ACI

and sh~1l on conviction be lia ble 10 Ihe sa me penalty establ ished for an

offence agai nst Ih e provisions of subsection (3) of Ihis section.

13. (I ) An agreement made by or through a person carrying on

stockbroking activities in cont ravenl ion of section 9 of Ihis Act , shall be

unenforceable , and any person who buys or sells seeurities through a

person who acts in contravention of the said set:tion shall be en litled 10

recover any money or othe r property paid or transferred by him under

Ihe agree ment. toget her wit h compensa tion from tile unauthorised

person for any loss sustained by him as a result of having paid sucll

money or transferred such property.

(2) The recovery of any money or olher properly or

compensation as referred to in subsection (I) of Ihis seclion shall be

effected in such manner as the part ies may ag ree or as Ihe Tribunal may,

o n the application of any sucll parly. determine.

(3) Notwit hstanding tile provisions of sUOseClion (I ) of Ihis

section. and without prejudice to any right for tile payment of

compensation in accordance with Ih is section, the Tribunal may on Ille

application of any party wllo had acted in good failh, uphold an

agree menl as is referred to in subsection (I) ofthis section if il is salisfied

that it is just and equitable for Ille agreement to be so upheld on the

grou nds that any party there lo. olher than the unauthorised person.

acted in good faith

Provided that in Ihe assessment of any compensalion Ihat may

be payable in accordance with this section the Tribuna l shan ta ke into

account Ihe fa ct that Ihe agreemen t has been so enforced.

(4) Whcre in accord ance wilh the provisions of this section

the T ribunal 00 the applicat ion of an y parly determines that any

agreement should be unenforceable and the properl y 10 which the

agreement refers ha s bee n lawfull y IT,,n,ferred 10 a Ihird part)". Ihe

Triburral shall determ ine Ihe valuc or Ih e prope rl y so lTansfened and

ord er Ihal the pMty who would have becn c nt illed 10 recovc r such

property shall be paid a sum cquIVa lenl hl Ih e value sr, delermined in

lieu of Ihe reco"eryof Ih e ~a id propeny.

14. The Tribunal may. upon an application by the Cou ncil , whcre

it is satisfied that any person is acting or is about 10 act in contrave ntion

of Ihis Act. the Slalute o r any bye-law I h~t m~y be applic~blc, give such

orders and direClives as it may deem necessary to stop or preve nl such

con travention; and any person who aClS in contravention o f any such

order sha ll be guilly of an offence againsl Ihis ACI a nd shall on

convict ion be liab le to a fi ne (mulla) of two thousand liri .

IS. Nothing in th is Act shall aUl horise the Min iste ror the Cenlral

Ban k to enquire or e~use an e nqu iry 10 be made into the affairs of any

individual stockbroker or person tradingon Ihe Exchange e xcepl for the

purpose of e nsu ring compliance wilh Ihc pro"isions of thi s ACI.

16. (1) Without prejudice to the provisio ns o f section 15 of this I "'f'«'"'" 01

Act , the G ove rnor may. and when so directed by the Min ister shall. . H.i«of,1>e

appoint inspectors to examine the affairs of the Exchange and its "",""n&".

members from time to time underoonditionsofsecreey. Inspectors shall

make a report o f any inspection ca rried out by them and shall refer

therein to the operations of the Exchange and its members. the

observance of the provisions of this Act, the Statute and Bye-Laws and

on any othe r matter that such inspectors may deem to be relevant to the

proper functio ning of the Eltchange and to the protectioo of the

Eltchaoge. its members. investors and the public io general. and to any

other matter as the Governor ma y require 10 secure a sound seeurities

market,

(2) (t shall be the duty of th e members of thc Council,

members and staff of the Exchange and any other person involved in the

operations of the Exchange to prod uce to an inspector all books and

documents relevant to his inspection and to give the inspector all

assistance in connection with such inspection which they are reasonably

able to give.

(3) If aoyofficer or membe r of the staff of the E~change shall

fail to produce aoy book or document which it is his duty under this

sect ion so to produce, or refuses to answer any quest ion which is put to

him by an inspector with respect to the affairs of the Exchange, an

inspector may by means of an application refer the matter to the

T ribunal and the Tri bunal may thereupon inquire in to the case, and

after hearing all the relevant evidence. and upon determilling that such

fa ilure is Ilot justified, shall order such offieer Or other member of the

staff to produce such book or document.

(4) The Governorshall forward a copy of any report made by

the inspector to the Council which shall give its observations thereon to

the Governor withill two weeks of the receipt by it of the said report, If

on any maller raised in any report and after considering the

observations of the Coullcil the Governor is not satisfied with any

matter respecting the operations of the Exchange to which the report

refer> or with such action wken by the Council 10 remedy any short-

mmiog, he sha ll make a report o f the situation to the Millister toget her

wit h sueh recommendations as he ma)' consider necessary and the

Minister may give the Coullcil such directions which arc not inoonsistent

with this Act or the Statute as he may deem to be appropriate.

17. (I) lfit results to the Mini ~ter from any report made by the In"";",'"",,

Governor in accordance with subsection (4) of sect ion 16. that there are in'o ;noo.T

circumstances 10 suggesl insid er dealing. he may appoint one or more .!eolin,.

special inspectors 10 carry ou t such investigations as he may deem 10 be

necessary to establish whether or not any insider dealing has occured, is

occuring or is likely in the circumstances 10 occur. and to report the

H;MIlt of their investigations to him.

(2) In appoi nti ng any special inspector under this seclion the

m.ly dirtct that the inv<,,~tigation shall be carried out within

Mini ~ter

such lime and shall be confined to such specific or general mauers as Ihe

Mini $l<!r may dee m fil.

(3) Any special inspector may require any person who in his

opinion is or may be able to give information concerning a llY suspc.:ted

insider dealing

(a) to produce to bim any documents in his possession or

under his control rel ating to the suspected insider dealing;

(b)

to allcnd before him; and

(c) olherwise to give him all assistance in connection ~ith the

invest igation which that person is reaso nably able to give;

and it shall be the duty of that person to comply with that requirement.

(4) A speci~ l inspector may put questions to any person he

considers is or may be able to give information concerning any

suspected insider dealing.

(5) A special inspector shall make such interim reports to the

Minister as the Min ister may direct and on the conclusion of the

investigation he shall make a final report to the Minister.

(6 ) Nothing in this section shall preclude any person with

respect to an y question that may be put to him by a special inspector,

from claiming any privi lege that would be competent to a wi tn ess before

a court of eivil jurisd iction in respect of any informalion which is secret

or confidential or in respect of any question the answer to which may

incriminate such person, and where any special inspector disagrees that

any such claim is justified, he may by appl ication to the Commercial

Court request such Court to determine upon such claim, and the said

Court shall after hearing the person who has claimed such privi lege and

the special inspector dete rmine such question wit h urgency. No appeal

shaH lie from the determination of the Court.

(7) Nothing in th is sect ion shall require a person licensed to

carry on the business of banking unde r the Banking Act to disclose any

information or produce any documenr relat ing to the affairs of an

individual cuslomer. unless upon the applicat ion of a special inspector

the Court of Appeal is satisfied thal. not withstanding Ihe provisions o f

such Act, Ihe disclosure or production is necessary and shoul d be

reasonably allowed for the purposes of Ihe investigalion.

18. (1)

Any person who

(a) unlawfully refuse s to comply with any requesl under

section 170fthisAct;or

(b) unlawfully refuses to allswer any question putlo him by a

special inspector appointed under tllat section with respeCI 10 any

matter relevant to his investigations;

shall be guilty of an offence aga instlhis Act and shall On conviction be

liable lo a fine (mU/la ) ofnolll1ore Ihan IWO thousand liri.

(2 ) Wi thout prejudice 10 Ihe provisions of subsection (11 of

Ihis section where a licensed stockbroker unlawfully refuses 10 comply

with a lly reque!it under section 17 of this Act, or ulllawfully refu~es to

allswer any quest ion put to hi m by a special insp«tor appointed under

that section with respect to any matter relevant to his investigation, the

special inspector shall make a report thereon to the Tribunal and the

Tribunal shall after hearing the special inspector, the stockbroker and

ally relevant witne5S that may be produced by them, determine whether

the facts adduced by the special inspector against the stockbroke r

subsist, and where the Tribunal finds against the stockbro ker it may

through the Council serve notice upon suc h stockbroker

(a) cancc!ling any liccnce issued by the Council forthwith or

after such period as it deems fit;

(b) restricting the said licence to the performance of

contracts entered into before such time as may be specified in the

notice;

(c) prohibiting him from entering into transactions of a

specified kind or entering into such transactions only in specified

circumstances or to a specified extent M may be determined by the

Tribunal;

(d) prohibiting him from soliciting business from specified

persons or persons of a specified class or from all persons.

(3) The period ment ioned in paragraph (a) of subsection (2)

o f Ihis section shall be such period M appears to the T ribunal reasonable

to enab le the person on whom the notice is served to complete the

pe rformance of any contracts e ntered into before the notice comes into

force and to term illate such of them as are of 3 continuing nature.

(4) A persoll shall not be considered for tbe purposes of sub-

section (2) of this sectioll as havillg a reaso llable excuse for re fusing to

comply wit h a request or answer a question in a case where the

suspected insider dealing being invest igated relates to dealing by him on

the instructions of. or for the account of, anotherpcrson. by reason that

at the time of the refusal

(a)

he d id not know the ide ntity of that other person; or

(11) he was subject to the law of a country or territory outside

Malta which prohibited him from disclosing information relating to

the dealing without the consent of that other pe rson.

(5) A notice served on a person under subsection (2) of this

section. may be revoked in part or in full at any time by the Tribunal if it

is satisfied that the stoc kbroker has agreed to comply with the relevant

request or answer the relevant question.

(6) If it appears to the Tribunal that a person 011 who m a

BOliee under suhseetion (2) of Ihis section is served or revoked, is an

accredited representative in terms of the Statute, such notice or

revocat ion shaH be deemed 10 have been served on or revoked in respect

of the licensed stockbroker.

19. (I)

Any person who is a pany to insider dealing shall be

guilty of an offence and shall OR conviction be liable \0 a fine (mw/Ill) of

five thousand liri or to imprisonment for a term not exceeding two years

or 10 both such fine and imprisonment .

(2) Where from a special inspector's final report il results

that an offe nce of inside r dealing has been committed the Minislershall

refer and transmit a copy o f the report to t he Commissioner of Police.

(3) A person found guilty of insider dealing shall also be

liable to pay to such persons as may be determined by the Tribunal.

compensation in an amOLlRI 10 be fixed by the Tribunal on the

application of any pe rson who , in a transact ion for the purchase or sale

of securities en tered into with th e o ffender or with a person acting for or

o n theorfendc r's behalf. s.uffers loss, In de termining $lIChcompe nsat ion

the Tribunal shall , among other things, consider the loss sustained by

that applicant by reason of the diffe rence between the price for which

the securities were transferred in that transaction and the prices at which

they would have been transfe rred had the confidential information also

been known to the applican t.

(4) An action under this section for the recovery o f a loss

referred to in subsect ion (3) shall be barred by th e lapse of twO years

from the date on which the judgement in which th e person liable 10 pay

compensation has been found guilty shall have become res judicara ,

(5) The right 10 claim compensation under this seetion shall

not prejudice, and shall be in addition to the right of any person to claim

damagt$ under any othe r law,

PART III

The Malta Stock Exchange T ribunal

20, (I) There sh all be a T ribunal 10 be known as "The Mall a

Stock Exchange Tribunal"' in thi s Act referred 10 as "Th e Tribunal",

having the functions and powers assigned to il by Ihis Act.

(2) The Tribunal shall OOflsist of a Chairman and Iwo other

members.

(3) The Chairman and members shall be appointed by the

Minister who in his opinion possess Ihe necessary expertise and

experien ce 10 deal wilh lhe cases Iha l may be rderred 10 the Tribunal.

(4) The Chairman shall be an advocate with a minimum of

twelve years legal practice.

(5) The Olairman and olho!r membel1l of the Tribunal shall

hold office for such period being of nOI less Ih an three years as may be

determined in their appoin tment and ca nnot be removed during Iheir

term of offICe CltCCpt on grounds of pron'd inability to perform the

fu nctions of their office whe the r Hrising from infirmity of body or mind

or any o ther cause. o r proved mi5bc haviour.

21 . (I) The Chairma n 81ld other mcmbe!'l; of the T ribunHI shall R~m""m'_o(

receive such remuneration as may be determilled illthcir illstrument of mmob< ...

appointmen t.

Tribu .... .

( 2) llle remurteralion referred 10 in subsection (I) of this

section shallllOt be altcred durillg the lenure of office o f a member by

whom il is receivable. except for such challges as may from time to lime

be required to preseT"\'c at all times duri ng the te llure of the appoilltmcnt

the proportioll of the remune ration 10 Ihe salary of a J udge of the

Superior CourlS. as existed on the da te of the appoin tment.

22. The Tribunal shall have the power 10 summon "'itrtesses and

to ad minister the oath thereto. and 10 appoint any expert orexperl5 as il

may deem necessary for the determination of thc case: be fore it .

23. The Tribunal sha ll dea l wilh any maller before it as eltpedi· Tnbun.t 10

d .. t .. ;,h """"

(iousty as J>OSI>ible and shall give ils decision wi thout delay.

"f'<d;,;"",ty.

24. Subject to the rules of Nmural J ustice. the TribunHI shall P,,,,,,,du,o.

regulate its own prOI,.'cdurc.

25 . The Tribunal sha ll hold its siuings in public unless ha\';ng Sin;nplOl><

regard to Ihe nat ure of the matter before it. it deems it fit and proper to hokl;" 1"'1>1;0.

t'Onduct the proceedings or pan thereof in private; in any such case the

decision of the Tribunal shall always be delivcred in public.

26. (I) The T ribunal shall ha"e tile funct ion to dete rmine 011 ~·""",,,",.,,f

matters as may I'C re ferred to it under sections 13. 14. 16. 18. a nd 19 of , ... Tribu".1

this Act.

(2) Wilhout prejudice to Ihe provisions of subsection (I)

hereof. the Tribunul shull also have tile function to consider either of ils

own motion or o the rwise on reports made 10 it by any pen;On or upon a

((.""quest to tha t effe.."I by the Minisler. the Central Bank. or Ihe Council.

ilHcgcd or suspected irregular pr.Ictices in Excha nge dealings and wheT('

the Tril>lmal dete rmines that there arc sufficient grounds fo~ holding an

inw,tig;otion. to in\'cstig~ te any such allega l ion or suspicion and to take

wh atl:'t""T action il deems fil and proper.

PART IV

Financial Pro" lsions

this withoul further appropriation Olher than Ihis Act. b~ warrant unde r

the hand of Ihe Minisler aUlhorising Ihe Accountanl Generalt" mak e

such p;.ymCnt

Pro \·idcd that Mly an amount of two huoored thousand li ri

sha ll become payable on the com ing into rom: of this Act and the

balance shall be paid as and wil(on required by the Exchange.

(2) The Excha nge shall cndea~our to meet all expenses in

connection with its operations through the income ;'CCTuing to it and for

this purpose t he Council may by means of bye-laws impose:such fees and

chargCli. iJlCluding fees for mem~rship and li~ting of companies. as it

deems fiE.

(3) For the purpose of carrying ou' anyor i,s functions under

Ihis Act. the Council may with the approval in writing of the Mi nister

given afl er consultation with the Central Bank . borrow or raise money

in suc h m:1nner. from such person. body or <ullhority. and under such

terms und conditions as the I'-.liniste r. after consuhmion as aforesaid.

ma y in wri ting approve .

(4) The Mi nister may, after consullalion wilh the Cenlral

Bank . ma!:e advances to the Council of such sums :15 he may agree to be

required by the Council for ca rrying out any of its functions under Ihis

ACI. which advances are to be repaid by Ihe Coullcil on such terms and

cond itio ns as the Minister. after consultation as aforesaid. ma~ deem

appropriate.

211. ( I ) The Council shall as soon as possible bul not later than

four (4) months after Ihe closing or each financial year of the Exchallge

Iransmi lto the Minisler Ihrough Ihe Central Bank ~ cop~ ofthc Annual

Audited Accounts and the Annual Repon 0f1 the activities o f Ihe

Exchange a nd shall publish such accoun lS and report in alleast IWO daily

newsp<lpcrs within onc month th ere <lfte r. Those nCCOunts <lnd th at

rcport shnll. as soon as may be. be laid on the Table of the House by the

Minister.

(2) The Accounts of the Exchange shall be audi led hy

au dit ors appoin ted by the Council ",·ilh Ihe approval of the 1\linisll.'r.

(3) All profils re;,liscd hy t he E~eh"nge , hall he put hi :1

reserve fund which shall be used fOf such purposes ;IS the Cnun cil nm y

deem to be requ ired 10 mcetlhe uhject, "r th e E~change . i ncludin~ Ihe

repayment of ;IIIY liabilities.

I'ART V

Ml .... ·dlaneous

2<). Regulill inn 13 uf Ihe Firsl Schedule I" Ihl.' C"mmen.:i;oI

1':l rtllC rships Ordin<lncc ~hall n"t "pply with re~;ord I" the Ir;lI"fl.'r "f

~har...,.. in quutetl eumpanio.."""<.

30. (I) The Min rsler shall have the power to su~pend Tom""",,),

tempoorarily the trnding in securities on the Exchange. if in his opin ion ..... pe~ioo"f

the orderly transaction of business rs being prevented. or is likely to be "1""""''''

prevented bemuse of the occurrence of

(a ) any eme rgency or n~lUru l disaste r

any economic. financial or polit ical crises; or

(b)

(c)

any other e\'cnt which disropls tl'1lding.

(2) In the exercise of his powers under subsection (1) of this

section the Mi nister shall whe re prnct icable co nsu lt with the Council

which shall give the Ministe r such assistance as ma~ be appropriate.

(3) The Minister may not suspend trading for more tllan

fifteen days in any period of Ihree monllls un less authorised 10 do so by

resolution of Ihe Ii ouse .

(4) T he Counci l may recommend 10 the Min ister the

temporary suspe nsion of trnd ing if it is of the opin ion that the orderly

tra nsaction of business oft he Exchange is bci ngdisrupted beeauseoflhe

occurrence refe rred to in paragraph (a) of subsection (1) of tllis secl ion

or because of anyeoonomic or financia l occurrence which in the opinion

o f the Council me rilS such closure.

(5 ) The Cou ncil ma~ order that for such time as it moy

determine no trading of any kind m a~ be transacted in one or more

specified securi ties of qUOled companies if i, has reasons to believe thal

this would be in the intc reSI of l he Exchange. the public or in"cstors

gcm:rnlly

Provided that a tem pornry suspension may not be of more Ihan

thi rty dar.; in a period of three months unless Ihe Minister in

co nsultation with the Cen tral Bank approves such temporary

suspension .

(0 ) No transaction may be e xecut ed at any time in the e~'en l

(, f l11e ll'mp"ra n ' suspeo~ion of trading under this sect ion. Any

"HI";!l·t;"n ,,' executed in ron tr~,'ent ;on of Ih rs subsection shall be

inl'alid .

J I. ( I) Notwithstanding anything contained in Ihe Income Tax E ..... "'.,.,. f..,.,.

ACI. o r in any enactme nt replacing the said Act when! a company income f • •

;Icquircs the status of B qu oted compan y. the ra te of income IIll! ........

chargeable on tile gains or pmfi lS arising to it shall be reduced in respect c"". C.'

I,f the s;tid j!ilins o r profits so arising in the year in which il acq uires the

st atu~ of H quoted company and in Ihe subsequent \1"0 )'eol" as follows

- by two percentage points if 20% or more bill less than 30%

of its ISsued voting share capital is offered to the pubhck as a listed

seClffity

- by ).5 perccnu'l!c points if3O% or more btllless th:1n 40% of

ils issued voting share capilul is om· red 10 the public as a listed

security

- by fi,'c percentage points if 40% or IfI()rc orits i~.sucd vmi ng

share capital is offered to the public as a listed scrurily'

Pro vided that any o f the percentage points reduction listed

aoove shall be appl icable on the is~uc of new shares or ... ·ocre CKisl;"g

shares withi n the pcr~n l ~SC proportion slated are actually offe red for

sale 10 t lie public by the e ~isli l1g sha reholders and shall be effective from

the tal( year in which the ncw sh a""'~ or exisli ng shares arc issued ~s

a fo res~id

Provided further that the redu~1 ion in the rate of tax sha ll apply

only in respect of a quoted oompan)' which has been so quoted within

five years from the date this ACI comes into force but thc Minister 01<1)' .

if he deems it 10 be in the public jnlCn~sl . cxtcoo this period to 11) ye:ITS

by nOI;ee in Ihe Gazelle

Provided fun her thut Hny onc company may not ocncfil more

tha n once in the said period offive nTlen )'ea TSa.~ l he c-d.o;e ma y he hul lhe

perce ntage poin ts reduction in lax as IIforesaid can incrc'l-.c dcpendin~

on th e percentage of is.~ucd ~oting -.hare capital offered lu I ~ puhlic

within Ihe thre<: years from dat e the cump,lIlY <lcqll ired the Sllltu~ uf "

qlloted company as aforesa id .

(2) Notwi tbsta nding any thi ng con tained in th e Dllty o n

Documents Act . 1981. no dUly shall be: payable in accordance with Ihm

Act in respect o f any instrument whereby any ~curi lies of a quoted

compa ny are tra nsferred .

32. SeC1ion 55 of lhe Ce nt"'~1 Bank uf Malta Act shall nUl apply in

res~t of a ny offe r for !"lle C)r ~uh-;(:ript iun lu the puhlic ,,( '''ly ,hare~.

... Iocks. dehenturcs. dehenture 'Inck. ""nd, ur nlher pilrTicifla\ions

which are lisled hy the E~ehangc.

JJ. ( 1 ) No persun sh" 11 a~"in'l fI"ymenl tlT nth"r ~, m~idcr., tiun .

wi t hou l " li cence uf the Central H<I ok uffer or give advke. :",i,tan~'\: • IT

SU ppOrl in any form ur in ,my way tn any "ther pcrs"n in re~'1T<1 tn Ih~'

purchil se. sa le. requi sitiun. Iran,fc r or holdi ng uf '''ly ,h'lrc'. ,t.,,:k~.

debentures. dcocn turc stud . honds ur uth"r p" rlicir:tti"n~ whe ther in

nr uf a CHmpa"y ur utherw ;",. ,mu whclher ,uch wmrany i~ rqd,I"rell

(lr inco rporated in uT "Ul\id.: M:lh a. or offcr or gin' ,lid. ",I"i,:c.

assislan~'C ur support in reg:trd I" any "Iher fin,,"...;,,1 iIlVC'1illcut .or

inve,t menl hu~inc,~ .

(2) In o,",i<.lcring :ony applk1.1 iun rur" lk'\:n<'\: ," i~ rdcrr.:d

10 in suhscctilln (I) or Ihi~ ....:cti .. n ' oc CCOl r"l n ank may «"Iuire lhe

uppliC'dOl 10 give sueh pro"1f .. r hi~ ahilily. <lm,lirK.~'liun '10" cxrcricrn. ..

fur Ihe pu rpu"", ur , uch liccrK.'\:"~ loc Ccnlralllank may, ... ,\:OI fil .

(3) The Central Bank may subject any such liocnoc to such

co nditions II'j it may deem appropriat e and the applicant shall be bound

10 observe such conditions.

(4) The Cen tral Bank may limit a liocnce to a determined

pe riod o f time and may ame nd . suspend or revoke any sueh licence or

any condition ~"ached th ereto as it may deem to be necessary.

(S) The Central Bank shall not be bound to give reasons for

refusing the grant of any licence.

(6) Any person aggrieved by a decision of the Ce ntral Bonk

in connection with the gran t of a licence under this sect ion may appeal

therefrom to the Minister within ten .... urk ing days from the

commun ication o f the Central Bank'$ dechiion 10 him . The Minister

shall before deciding on any such appeal hear the appellan t and consul t

Ihe Cen tral Bank . The decision of the Min ister shall be final.

(7)

The provisions o f this section shall not apply to

(a)

the Exchange

(b)

licenced stockbrokers; and

(c) any company lice nsed as an offshore company under the

Malta In ternation al Business Activities Act. ]988. to act as a

stockbroker in Malta . provided il trades solely in securities issued

outside Malta and acts exc1usivelyon behalf of and in the interest of

persons not resident in Malta.

34. In pursuance o f its dUly to mai nt ain orderl y conditions in the Pow." of ,I\<

ca pital marke t th e Central Ban k may. without prejudice to any o ther C.n" .t B.nk '"

po .... ·er under any o the r law. requi re t he Exchange to re porllo il on any

tnansact ion effected by licensed stockbrokers in listed and un listed ~t .. ;.-.IO

sec urities.

JS. In t he exercise of it s functions under section 33 of this Act. the

Central Ban k shall have access to. and the power to in spect. any books. ,t..

accounts. and any other documen tation relating to stoc1.broking or

financial consu ltancy under whate\'er form in the po5SC5Sion of any

ptIWn to who m a licence under the said section has been given and any

such person shall be bound to comply with any directive given by the

Central Bank for this purpose .

36. Any person who makes any act in contravenlion of sub- ~ ... lrylo<

"cctio n ( 1) of section 33 of th is Act or ... ·ho fails to comply with any Klin

con dit ion imposed in a licence issued accordi ng to Ihal sect ion. or fails to <:On .... tlOnlor

com ply with any direct ive thm may be give n to him in accordance: with .,hi .. , .,i.hou,

.... ction 35 o f this Act. shall be g.uilty of an offence against th is Act. and .tice""" .

~han o n con \'ict ion be liable to a fine (m,,/'a) of nOl more than five

t housand liri .

The provisions o f :;cetions3). 34. 35 and 36shall not. un less so Oih .. I." • .

J7.

..:~rr ... ssly st ated. derolwte from any requiremcn t or from any liabilit y

under ,my o l her law.

11Ic Commercial Code shall be amended as follows

(a) for the words "the bu ilding of the Exchange" in section

121 thereo f. there sha ll be substituted the words "the bui lding o f

th e Chambc r ofCommeree"; and

(b) section 122 thereof shall be deleted.

SCHE DU LE

(Section 7)

TilE STATlJfE

Applkllblllty

Th is Statute applies to " the Malta Stock Excha nge" as estJ bl ished

under section 3 of the Malta Stock Excha nge Act. 1990.

2. Inlerp~lll tion and General Pro~islons

(i)

I n this Statute un less the subject or context othe ...... i-.c req uires

'" AC"CTed ited Representati~e " means an indi~idu31 who has

been aut lloriscd in writing by a member to repre,;.cnt him in respect

of his acti~i t ies in conllCCtion wit h the EIIchange and for whom the

member acccpfs full responsibility and who ha-; been duly acceptcd

by the Council to act as wch; and

"The Act" mcans ,1le Malta Stock EIIchange Act. 1990.

(i i) The officers o f the Exchange shall be the Chairman. the

De p uty Chairman a nd th e General Manager of the Excha nge.

(iH ) The Gc nera l Manage r shall ha~c such du ties as arc assigned

to him by th is Statute o r the bye-laws and sha ll act under Ihe general

d irection of the Counci l.

3. Membership

(i ) The membership of the Exchange shall consist of licensed

stoc kbro kers.

(ii) E~ery ca ndidate fo r admission 10 membe rship sh~lI m;lke ~n

application for a licence in writing to the Ge neral t-.l anage r. in such form

as the Council may from time to time by bye-laws est ablish.

(iii) No pcT1iOn mall be granted a licence 10 act as a stockbroke r

unless he

(a) is. in Ihe opinion of Ihe Council. a fit and proper person

to twld such a licer>CC;

(b) deposits such security/indemni ty as the Council may in

the bye-laws establish

Provided that the sccurity/indcm nity shall be ~"SIablished in an

a mounl which sh:tl l be equal 10 all stockb roke!1;. !iOho ..... e~e r thm thc

Council may ut any tim e alter the antoum of the sec urity/indemnity as it

may dee m fi l. giving whe n such amount is raised "I least Ihirly days

with in which licen:;cd stockbrok ers ~halt have to comply; and

(c) posscs,;cs such o ther qualifications ,IS may fro m ti me 10

time be established by byc·l«ws.

(iv) On rea:ipt of an application for a licence the Council shall fix Souf,,,",,,,,,.

a date on which it will consider such application and. at least si~ wee ks

prior to that dHte, the General Manager shall post a notice at t he Bursa

stating the name , address and other relevant details of t he applicant. and

giving the date. which shall not be less than" weeks after the date of

poslingof the notice by which any person may make ""nllen submissions

to the Council with respect to such application.

(v) Applications for a licence shaJl be considered by the Council c _ .. ,.,..

on the date fi~ed in accordance wi lh paragraph (iv) he reof 31ld

subsequently al such other meetillg o f the Council as the Council may

deem 10 be Ilecessary.

(vi) No person sha ll be gran ted a licc nce except by resolution of VOlinl .

the Cou ncil supported by a majority of Ilotless than two-thirds of those

present and voting

Provided that no such resolution may be validly passed unless

it is supported by al lea51 five votcs.

(vii) The General Manager. on the direction of the Counci l """P"""'.'

fOllowing such \·oting, shall in writing in fonn Ill<.: applicanl of the lI..j«Iioft.

decision o f the Council wi th rega rd to his application. Upon the grant of

sueh a licence by the Council the candida te shall become a member of

the Exchange .

(viii)

The Cou ncil shall not be required 10 give reasons for its tmcIoIu, • .

decision.

(ix) Foliowing the rejection of an applica tion for the grant of a RcJCC'ed

licence , the applicant may not again apply for a licence before the lapse "Pf&o,iom..

of twel\'e calendar months from the date o(weh rejeelion.

(x) Every person granted a licence as aforC!;aid shall fumish the Rc '"' .... ~

General Manager with a busi ness address in Malta, not being a POSI ,,<kI ...... .

Office Box numbe r. to which all com munications and correspondence

shall be sen t. Me mbers shall notify the General Manaller of any change

of address.

(xi) A member may appoint an accredited representative to cany "=«Iiltd

o n trading on the Exchange and such member shall be responSIble for lI..prntBUM"<

and be bound by all actions or omissions of such representat ive in his

activities in oonoecl ion wi th the Exchange.

(xii) A register of members and aCC!"Ctliled repre.'lC ntativC5 M.~"·

together wit h thei r registered addresses shall be kept and maintained by R ....... ' .

the General Mallager and shall be open to insp.:ction by members and

the public during norm al business hours.

(xiii) (a) A member wi shing to resign his membership shall do Re>i~n'l"',

so ill writing. to the Council whieh shall forthwit h post a notice on

the notice boord at the BOTSa.

(b) All stockbroker.> ineluding tile member intending to

resign sllall witllin such time as may be establislled in tile bye·taws

advise tile Council of any olotstanding debts. obligations. or

com mitments of tile member inte nding to resign and of any

outstanding dealings and transactions in whi ch he may be

conce rned in connection wilh his activities as a member of tile

Exchange. Such notice shall remain posted for such time as may be

dete rm ined in.he b)·e·laws.

(c) NOIwi .hstanding Ilis resignation a stockbroker shall

re .ain at! his obl igatio ns and liabilities under this Act unless the

Counci l shalt have discharged him in writing tllerdrom.

(xiv) Any person wOO has resigned his mc:mbeT5h ip may re-apply

for admission ; such new application Shall be subject to the condi tions

applicab le tu t he admission of new membe rs at thc time of its filing. Nu

suc h applica tion will be co nsidered by the Council be fore Ihe lapse of

onc yea r from t he date o f resignation .

4. DIsciplinary Procedure

(i) (a) It sllall be tile duty ofllie Council to enfo rce the Statute

and bye-la",'li and to e nsure compliance tllerewith by the mem be rs .

(b) Any member of the Council who is d irectly ur indi rectly

invulved in any maller under discussion before the Council shall

withdraw from the si tling o f the Council when such matter is being

discussed or decided upon and in such an event for alt intents and

purposes the Council shall be constituted of all the otber membel'li.

(c) The determin ation a! to whether a member uf the

Cou ncil is directly o r indirectly involved in any such malle r. shall

rest exclusively with the olher members uf t he Council to tile

e:cclUSlon of such member.

(il)

Where the Council finds that a member

(a)

has failed to comply with the Statu.e o r thc bye·laws; or

(b)

has failed to comply with any decision of lhe Council ;ur

(c) has nut acted in a fi t and proper way to the detriment of

tile Exchange . its members o r the publk in ge ne ral; or

(d)

has b.:e n adjudged bankrupt; or

(e)

has been convictedof any crime inVOlving public tru st : o r

«(] has been interdicted ur incapacitated.

the Council shall dctermin e what action. (including expu lsion.

5u$pension. or the imposit ion uf a pecuniary pen alty) il $h311 take

wi th regard to such mem ber.

(iii) (I) A rC$Olulion in purwaoce of paragraph (ii) o f this Ddciplinary

An icle involving the expulsion. suspension o f o r the imposition of a procedure.

pecuniary penalty on a member shall requ ire the support of not less

than two-thi rds of the me mbers prese nl al the meeting.

(b) Suspension of memberships hall be for $UCh period not in

e xcess o f one year provided Ihal such suspension may be exte nded

for a good and sufficient reason as the Tribunal on the applicouion

o f the Council and after hearing the suspended member may deem

to be fit in the ci rcu msta nces of th e ease . During such period of

suspension the suspended member shall nOI carry on the business

of stockbroking . Notice of the expulsion or suspension of a member

shall fo rt hwith be posted on the notice board atlhe Borsa.

(c) Whe re a stockbroker has resigned , been upeUed or is

adjudged bankrupt or is conmed of a ny cri me involvi ng public

trust, or in the eve nt th at hc has become inte rdicted o r

incapaci tated, and is unable to mee t his liabilities to his fc llow

members o r to the Exchange. the Council shall have the power to

retain o r tocaU in the secu rity de posited in termsof sub-paragraph

(b) of paragraph (iii) of Article 3 of this Statute and to place such

monies or other sums realised the re by to such reserve 01" (){her

aceount as the Cou ncil shall dee m fit and to use all or any of such

monies to discharge the liabi lities o f the member to his fe llow

members or to the Exchange. includ ing any pecun iary penalty

imposed unde r paragrapb (ii ) hereof and any surpl us, if any, shall

be refundable 10 Ihe membe r.

(iv) Th e provisions of paragraph (ii) hereof shall mUllllisA<xr<dilcd

mutandis apply to accredi ted represen tatives. and in any such case the'"'"--'_·

Council may take a ny action referred 10 in the said paragraph with

regard to the member and his accredi ted representative and in any such

case Ihe Council ma y determine that such person shall not act as an

accredited represen tative for any other member for any period it may

dee m fi t.

(v) A membe r o r an accred ited re presentative. whose cond uct is Dof ..... ripu.

bei ng investigated by the Council, shall be give n the oppor1uni ty of

bei ng heard by the Council in his own de fence.

(vi) lbe decision of the Council in accordance with thi s Article 00ciP<>n finil.

sha ll be final.

Council

(i) The Council established in virt ue o f section 4 of the Act shall Couodl.

be COnst iluted in accordance wit h the following paragraphs of tbis

Article.

(il) Th e Min iste r shall appoint o ne of the membersoflheCouncil a.a. .......

as Cha irman.

(iii) 1be Council shall oonsist of th e following membe rs

(.) onc member nominated by the Central Bank from

among its senior offlCen ;

(b) four members appointed by the Mini ster from among

persons who by reason of their uperience in busi ness, financial

activities, t he professions or academic affairs are deemed by him 10

be fit to be so appoi nted ; and

(c) three othe r membersdected annually by the members of

the E.!I:change from IImong ils members

Provided thal until such lime as tbe Minister may by notice

determine. such three o ther members shall be appointed by the

Minister from any persons having the qualifications set out in sub-

paragraph (b) hereof.

(iv) In addition to the above members the Council mayC(H)pt not

mort than two o tber persons 10 be members of the Council as il may

deem upedienl.

(v) The Council shalt elect onc of its members as Deputy

Chairman who shall aCI as chairman in the absence of the Chairman.

(vi) The mcmbcnofthe Council1hall bold offICe for a period not

excadingthrc:c: years except for the elected members who shall hold

office for one year.

(vii) The Counci l shall appoint a General Manager who shall be

responsible for the day to day managemen t of the Exchange according

to the policy set by the Council.

(vi ii) The election of the elected members of the Council shall be

conductcd as follows

(a) the election 1hall be held by secret ballot at the specia l

meeting held in accordance wi th sub-panlgraph (a) o f paragraph

(iv) of Anide 6 olthis Statute;

(b) licensed stockbrokcrs eligible for election to the Council

are thO$C wbose names appear upon the membel"5· registe r at a dote

oot less than thiny days before the date of the spedal meeting al

which election of members of the Council is to lake place: and who

have not ceased to be licc:nsed stockbrokers as althe date of such a

meeting;

(c) nominations of candidates for election 10 Ibe Counci l

shall be in writing and shall state clearly the name of the licensed

stockbroker proposed for election and shall be iigned by at least

IWO other licensed stock brokers of the Exchange IS proposer and

SCCQnder and e ndorsed by the nominee. The forms of nomination

duly completed shall be lodgc:d wilh the Gcn enlJ Manager at the

Borsa oot less than thiny days before the date of the meeting. The

General Manager shall cause the names of all licensed stockbrokers

p.opo: sed for ejection to the Council and the names of their

proposers ans seconders to be posted on the notice board of the

Borsa.

(ix) A person shall cease to be a member of the Council in the Vaca_.

following cases

(a)

upon resignation notified in writing to the Minuter;

(b) ifheceases to bequalified to be appointed, nominated or

elected (as the ca.\C may be) as a member of the Council;

(c) in the event tha t he is adjudged bankrupt or is convicted

of any crime involving public trust;

(d) in the event that he has been inte rdicted or incapaci tated;

(e) upon unjustified absence from meetings of the Council

on three COfI5CaItive occasions.

(x) No member of the Council shall be forced 10 vacate his office _

by reason only of his being a member , director orofficer of any company

whieh has e ntered in to contracts with or dam: any work for the

EKchange, but a member of the Council shall disclose any personal

interest in anytran$8ction or contract and may not vote in respect of any

such contract or work. A member of the Council who acts in

contravention of this paragraph shall be liable to be removed by o rde r of

the Minister and shaH be liable to compensate the EKehange for any loss

caused by him in consequence 10 such act.

(xi) Upon the occurrence o f any circumstances mentioned in 11 ...... 11.

paragraph (ix) hereof the Council shall declare that the seat of the

member concerned has become vacant.

(Kii) Where Bny casual vacancy occurs among the elected or other Cau,lo..,o"""'.

members of the Council . such casual vacancy shall be filled by

the appointment by the Minister of another person who shall hold office

until the upiration of the term of office of the membe r in whose stead

he shall have been appointed

Provided that where the person vacating his seat was nominated by

the Central Bank, such appointment shaH be made by the Central Bank

in accordance with $uhparagraph (a) of paragraph (Ui) of this ankle;

and where the person vacating his seat was elected in lemu of

subparagraph (c) of the said paragraph the Minisler shall appoin t a

stockbroker to fill hi$lCat.

(xiii) Every me mber of the Council shall al a Council meclina v .......

have only one vote exoe pt for the Chairman Of the Deputy UaifOlan in

the absence of the Chairman, who shall have an original and I casting

vote. Decisions of the Council sha ll be taken by a simple majority unless

otherwise provided for in the Statute.

(xiv) The Cbairman and members of the Council shall be paid

such remuneration as may be approved by the Ministe r. The

remuneration of the General Manager shall be decided by Ihe Council.

(xv) Every member of Ihe Council shall be indemnified by the

Exchange against allliahiJities, oosts.losses and expenses to wh ic h any

member of the Council may become liable in respect of any maller or

thing done in good faith. by hi m in the execution of his duties as a

member of the Couflcil

Provided that no such member may accept liability without the

authority of the Council.

6. Council Meetings

(i) Meetings of Ihe Counci l sha ll be held on such dates and at

such times and places as the Chairman shall from tim e IOtime determine

sohowever that Ihe Council shall meet at least once every calendar

month .

(ii) Notice of Ihe dale , place and time of a meeting stating the

business to be deal! with in a meeting shall be given in writing by the

General Manager to each membe r at least one clear week in advance.

(ii i) The quorum of the Council for the transaction of business

shall be five members. If at any time a meeting is called the number of

members of the Council present shall for any reason not be sufficien t to

form a quorum the mee ting shall be adjourned to the same day in the

following week at the same time and place or to such other day and at

such othe r time and place as the Chairman may dete rmine .

(iv) (a) A special meeting convened by the Council shall be held

not later than the 31st Mareh of each financial year. The Chainnan

shall at such meeting make his report for the previous financial year

and submit the audited accounts of the ruchange for the approval

of the meeting. Liccnscdstockbrokersshall attend this meeting and

elect from among them selves thei r representatives on the Council

in accordance with this Statute.

(b) Othe r special mcc tings of the Council may be convened

by the Chairman on the reqoest by notice in writing of nOlless tha n

three members o f the Council and shall be held within one week of

such request . Noticeof any such special meeting. stating the objects

thereof. shall be given by the General Manage r in writing to each

member of the Council at least seventy-two hours before the date

fi~ ed for such meeting.

(v) The Council shall have power. subject to the provisions of the

Statute. to fi~ its own meetin gs and regulate its own proceedings.

7. Finance

(i) The funds of the Exchange shall be held in such banks as the

Council shall from time to time determine. All cheques drawn on the

accounts of the Exchange shall be signed by such person or persons as

the Council may from time to time direct.

(ii) The income and property of the Exchange shall be applied

solely towards the promotion of the objects and in the intcrest of the

E~change as the Council may detere mine.

(iii) The Council ~hall cause proper Ix>oks of accounts 10 be kept Prop<,rook.

"hero""".

with respect 10

(a) all sums of money received and expended by the

Exchangc and the matters in respect of which the rcceipt and

expenditure takes place~

all sales and purch a~es by thc Exchange; and

(b)

(c)

thc assets and liabilities of the Exchange.

(iv) Proper Ix>oks of accounts shall be kept to give a true and fair T,,,,, onO

view of the state of the Exchange's affairs and to explain its transactions. f.;, vie"

(v) The Ix>oks of accoun ts shall be kept at the Registcred Office I'lac< ,,1><,.

of the Exchange and shall always be open to inspection by the members A""""".,,,

of the Council, and as the Council may from time to time determine. Up!.

(vi) Auditors shall be appointed annually by the Council during Appoi"''"''"'

the Special Meeting convened in terms of sub-pamgraph (a) of "hud;,on.

paragraph (iv) of Article 6 of this Statute and at a fee to be agreed to by

the Council.

(vi i) The auditors of the Exchange shall be entitled to attend any RiJh"of

special meeting and to receive all notices of, and other communications . ud;'"".

relating to , any special meeting, wh ich any member of the Exchange is

entitled to receive, and to be heard at any special meeting which they

attend on any part of the business of the meeting which concerns them as

auditors.

8. Compensation Fund

(i) The Council shall by bye-laws establish a Compensation Fund Est. bI;.trme"' .

for the purpose of ensuring the security of Exchange transactions in the

event of financial difficulties of any membe r 10 meet his obligations

towards the investing public.

(ii) Such fund shaH be regulated in such a manner as may be c"",,;,u,;oo.

provided for in the bye-laws.

Passed by the House of Represe ntatives at Sitting No. 432 of the 30th Octobe r, 1990.

L AWII.I;N<.:E GO NZ t

S,X"(Ik,a

P . M USC",T TERRftl l1.£

Clerk, 10 Iht" H OWit" of R t"prest"IIIUlil·t"$.

M,,,,....,n.h •• "'p<rijo llll-(l,-e'"

fto-.J_IIwCo "'., ...... ~,....,

Pro" It<: _ PM 16c