Securities and Exchange Commission of Sri Lanka (Amendment) Act, No. 18 of 2003

# PARLIAMENT OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA

## SECURITIES EXCHANGE OF SRI LANKA (AMENDMENT) ACT, No. 18 OF 2003

[Certified on 29th April, 2003]

*Printed on the Order of Government*

Published as a Supplement to Part II of the Gazette of the Democratic Socialist Republic of Sri Lanka of May 02, 2003

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# Securities and Exchange Commission of Sri Lanka (Amendment), Act, No. 18 of 2003

[Certified on 29th April, 2003]

L. D. — O. 3/2002.

## AN ACT TO AMEND THE SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA ACT, NO. 36 OF 1987

BE it enacted by the Parliament of the Democratic Socialist Republic of Sri Lanka as follows :—

### 1. This Act may be cited as the Securities and Exchange Commission of Sri Lanka (Amendment) Act, No. 18 of 2003.

### 2. The long title to the Securities and Exchange Commission of Sri Lanka Act, No. 36 of 1987 (hereinafter referred to as the “principal enactment”) as amended by Act, No. 26 of 1991, is hereby further amended by the substitution for the words “TO GRANT LICENCES TO STOCK EXCHANGES, UNIT TRUST, STOCK BROKERS AND STOCK DEALERS WHO ENGAGE IN THE BUSINESS OF TRADING IN SECURITIES;”, of the words “TO GRANT LICENCES TO STOCK EXCHANGES, MANAGING COMPANIES IN RESPECT OF EACH UNIT TRUST, STOCK BROKERS AND STOCK DEALERS WHO ENGAGE IN THE BUSINESS OF TRADING IN SECURITIES; TO REGISTER MARKET INTERMEDIARIES;”.

### 3. Section 12 of the principal enactment as amended by Act, No. 26 of 1991 is hereby further amended in paragraph (c) thereof by the substitution for the words “from the failure of a licensed stock broker or licensed stock dealer to meet” of the words “as a result of any licensed stock broker or licensed stock dealer being found incapable of meeting”.

### 4. Section 13 of the principal enactment as amended by Act, No. 26 of 1991 is hereby further amended as follows :—
(1) by the insertion, immediately after paragraph (bb) of that section, of the following new paragraph :—
“(bbb) to grant a certificate of registration to any person to carry on business as a market intermediary and to ensure the proper conduct of such business ;”;

---

**Short title.**

**Amendment of the long title to Act, No. 36 of 1987.**

**Amendment of section 12 of the principal enactment.**

**Amendment of section 13 of the principal enactment.**

2—H017163—5.650(2002/11)

2 Securities and Exchange Commission of Sri Lanka (Amendment), Act, No. 18 of 2003

(2) by the repeal of paragraph (c) of that section and the substitution therefor of the following paragraph :— “(c) to give general or specific directions to a licensed stock exchange or a licensed stock broker or a licensed stock dealer or a licensed managing company or a trustee of a unit trust or a registered market intermediary, from time to time;”;

(3) by the substitution in paragraph (d) of that section for the words “resulting from the failure of a licensed stock broker or a licensed stock dealer to meet” of the words, “arising as a result of any licensed stock broker or licensed stock dealer being found incapable of meeting”;

(4) by the insertion immediately after paragraph (f) of that section, of the following new paragraphs :— “(g) to regulate the listing and issue of securities in a licensed stock exchange; (gg) to direct a licensed stock exchange to reject any application made to it for listing;”;

(5) by the substitution in paragraph (h) of that section, for the words “any given listed securities”, of the words “any listed securities”;

(6) by the repeal of paragraph (i) of that section, and the substitution therefor of the following paragraph :— “(i) to inquire and conduct investigations into any activity of a licensed stock exchange, a licensed stock broker or licensed stock dealer, a licensed managing company or a trustee of a unit trust, a registered market intermediary or any listed public company;”;

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(7) by the repeal of paragraph (j) of that section and the substitution therefor of the following paragraph :— “(j) to publish findings of malfeasance by any licensed stock broker or licensed stock dealer or a licensed managing company or a trustee of a unit trust, or a registered market intermediary or any listed public company;”;

(8) by the repeal of paragraph (n) of that section and the substitution therefor of the following paragraphs :— “(n) to regulate take-overs or mergers where such take-over or merger is between one or more listed companies or where at least one of the parties involved in such take-over or merger is a listed public company ; (o) to conduct investigations into any alleged violation or contravention of the provisions of this Act or any rule or regulation made thereunder by any person ; and (p) to do all such other acts as may be incidental or conducive to, the attainment of the objects of the Commission or the exercise of its powers under this Act.”.

5. Section 14 of the principal enactment as amended by Act, No. 26 of 1991, is hereby further amended as follows :— (1) by the repeal of paragraph (a) of that section and the substitution therefor of the following paragraph :— “(a) carry out inspections of the activities of licensed stock exchanges, licensed stock brokers, licensed stock dealers, licensed managing companies or trustees of unit trusts or registered market intermediaries, in order to determine whether they are operating in conformity with the provisions of this Act”

Amendment of section 14 of the principal enactment.

4 Securities and Exchange Commission of Sri Lanka  
(Amendment), Act, No. 18 of 2003  

or any regulations or rules made thereunder  
and to charge the costs incurred in carrying  
out such inspections from the licensed stock  
exchange, licensed stock broker, licensed  
stock dealer, licensed managing company or  
trustee of a unit trust or registered market  
intermediary as the case may be, whose  
activities are being inspected :” :  

(2) by the substitution in paragraph (b) of that section  
for the words “licensed stock exchanges, stock  
brokers, stock dealers and the managing companies  
of licensed unit trust”, of the words “licensed stock  
exchanges, licensed stock brokers, licensed stock  
dealers, licensed managing companies of unit trusts  
and registered market intermediaries”; and  

(3) by the substitution in paragraph (c), of that section  
for the words “the managing company of a licensed  
unit trust” and “the prescribed particulars.”,  
respectively, of the words “the licensed managing  
company of a unit trust” and “such particulars as  
may from time to time be determined by the  
Commission.”.  

Insertion of new  
sections 14A and  
14B in the  
principal  
enactment.  

6. The following new sections are hereby inserted  
immediately after section 14 and shall have effect as sections  
14A and 14B of the principal enactment :—  

“Levy of cess. 14A. (1) There shall be charged, levied and  
paid a cess at such rates as may be specified by  
the Minister by Order published in the Gazette  
on every purchase and sale of securities recorded  
in a licensed stock exchange or notified to it  
under its rules by both the purchaser and the  
seller. Different rates may be specified in respect  
of different classes of securities.  

(2) The cess imposed under this section  
shall be in addition to any other tax or cess levied  
under any other written law.  

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(Amendment), Act, No. 18 of 2003  

Cess Fund. 14B. (1) There shall be established a fund  
called the Cess Fund to which shall be credited  
the proceeds of the cess imposed under section  
14A.  

(2) There shall be paid out of the Cess Fund  
such sums as may be authorised by the  
Commission for the purpose of —  

(a) developing the securities market;  

(b) enhancing monies lying to the credit of  
the Compensation Fund established  
under section 38; and  

(c) exercising, performing and discharging  
the powers, duties and functions of the  
Commission for the purpose of  
achieving its objects.  

(3) The money lying to the credit of the Cess  
Fund may be invested by the Commission in  
such manner as may be determined by the  
Commission.”.  

7. The heading appearing in Part III immediately before  
section 15 of the principal enactment is hereby repealed and  
the following heading substituted therefor :—  

“GRANT OF LICENCE TO A STOCK EXCHANGE, A STOCK BROKER  
OR A STOCK DEALER AND THE REGISTRATION OF MARKET  
INTERMEDIARIES”  

Replacement of  
heading in Part III  
of the principal  
enactment.  

8. Section 15 of the principal enactment is hereby  
amended by the repeal of all the words from “shall make an  
application”, to the end of that section, and the substitution  
of the following therefor :—  

“shall make an application to the Commission for the  
grant of a licence as a stock exchange, stock broker or  
a stock dealer, as the case may be, in such form, together  
with such documents and such fee as may be specified  
by the Commission from time to time in that behalf.”.  

Amendment of  
section 15 of the  
principal  
enactment.  

6 Securities and Exchange Commission of Sri Lanka (Amendment), Act, No. 18 of 2003

Insertion of new section 19A in the principal enactment.

9. The following new section is hereby inserted immediately after section 19 and shall have effect as section 19A of the principal enactment :—

‘Registration of market intermediaries.

19A. (1) Any person who is carrying on or who intends to carry on business as a market intermediary shall register with the Commission for such purpose.

(2) An application for the purpose of registration under subsection (1) shall be made to the Commission in such form, together with such documents and such fee as may be prescribed by the Commission from time to time in that behalf.

(3) On receipt of an application for registration, the Commission having considered the particulars stated therein and where it appears necessary having given the applicant an opportunity of being heard, shall by written notice inform the applicant whether he is being registered as a market intermediary or not, and where he is registered as a market intermediary, issue him with a certificate of registration valid for a period of one year effective from the date of issue of such certificate. Every person issued with a certificate of registration is referred to in this Act as a “registered market intermediary.”

(4) No person shall be registered as a market intermediary unless he complies with the terms and conditions set out in Part V of the Schedule hereto.’

Amendment of section 20 of the principal enactment.

10. Section 20 of the principal enactment as amended by Act No. 26 of 1991 is hereby further amended as follows :—

(1) in subsection (1) of that section by the substitution for the words “within six months prior to the expiry”, of the words “six months prior to the expiry”;

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(Amendment), Act, No. 18 of 2003

(2) by the repeal of subsection (2) of that section and the substitution therefor of the following subsection :—

“(2) A licensed stock broker, a licensed stock dealer or a registered market intermediary may three months prior to the expiry of the licence or the registration as the case may be, make an application to the Commission in the prescribed form, together with the prescribed fee for a renewal of his licence or the registration as the case may be.”; and

(3) in subsection (3) of that section, by the repeal of all the words from “a renewal of a licence,” to “as the case may be,” and the substitution of the following therefor :—

“a renewal of a licence or registration, the Commission shall satisfy itself that the licensed stock exchange, the licensed stock broker, the licensed stock dealer or the registered market intermediary, as the case may be,”.

11. Section 21 of the principal enactment as amended by Act No. 26 of 1991 is hereby further amended in subsections (4) and (5) of that section by the substitution for the words “licensed stock broker or stock dealer”, wherever those words occur in those subsections, of the words “licensed stock broker or licensed stock dealer”.

Amendment of section 21 of the principal enactment.

12. The following new section is hereby inserted immediately after section 21 and shall have effect as section 21A of the principal enactment :—

“Suspension and cancellation of registration.
21A. (1) The Commission shall have the power to suspend or cancel the certificate of registration granted to a market intermediary under section 19A of this Act.

Insertion of new section 21A in the principal enactment.

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(Amendment), Act, No. 18 of 2003

(2) The provisions of section 21 of this Act shall, mutatis mutandis, apply to, and in relation to, any suspension or cancellation as the case may be, of a certificate of registration under subsection (1).”

Replacement of section 22 of the principal enactment.

13. Section 22 of the principal enactment as amended by Act No. 26 of 1991 is hereby repealed and the following section is substituted therefor :—

“Appeal to the Court of Appeal
22. (1) Any person aggrieved by the decision of the Commission —
(a) suspending or cancelling a licence under section 18A;
(b) refusing to grant a licence under section 19 or a registration under section 19A;
(c) refusing to grant a renewal of a licence or registration as the case may be under section 20; or
(d) cancelling or suspending a licence or a registration as the case may be, under sections 21 or 21A;
may appeal against such decision to the Court of Appeal, within fourteen days from the date on which the decision was communicated to such person.

(2) Until rules are made under Article 136 of the Constitution pertaining to appeals under this section, the rules made under that Article pertaining to applications by way of revision to the Court of Appeal shall apply to every appeal made under subsection (1) of this section.

(3) The Court of Appeal may, on an appeal made to it under subsection (1), reverse, modify or set-aside the decision made by the Commission or make such order as the interests of justice may require.”

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(Amendment), Act, No. 18 of 2003

14. Section 25 of the principal enactment as amended by Act No 26 of 1991 is hereby further amended as follows :—  

(1) by the repeal of subsection (1) of that section and the substitution therefor of the following subsection :—  

“(1) Where a licensed stock exchange, a licensed stock broker or a licensed stock dealer, as the case may be, proposes to alter any material particulars already furnished or undergoes or intends to undergo a change from the state specified in the application for a licence or the renewal of a licence, as the case may be, as a stock exchange, stock broker or stock dealer, it shall be the duty of such licensed stock exchange, licensed stock broker or licensed stock dealer, as the case may be, to inform the Commission and obtain its prior consent before such alteration or change is effected.”; and  

(2) by the insertion immediately after subsection (1) of that section of the following new subsection :—  

“(1A) Where a registered market intermediary proposes to alter any particulars already furnished or undergoes or intends to undergo a change from the state specified in the application for registration or renewal of a registration as a market intermediary, it shall be the duty of such registered market intermediary to forthwith inform the Commission of such alteration or change.”  

Amendment of section 25 of the principal enactment.

15. Section 28 of the principal enactment as amended by Act No. 26 of 1991 is hereby further amended as follows :—  

(1) in subsection (1) of that section—  

(a) by the substitution for the words “shares” or “share” wherever those words appear in that subsection, of the words “securities” or “security” respectively ;  

Amendment of section 28 of the principal enactment.

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(Amendment), Act, No. 18 of 2003

(b) by the repeal of paragraph (b) of that subsection; and

(2) in subsection (2) of that section, by the substitution for the words “stock broker or stock dealer shall”, of the words “licensed stock broker, licensed stock dealer, the licensed managing company of a unit trust or a registered market intermediary shall”.

Insertion of new section 28A in the principal enactment.
16. The following new section is hereby inserted immediately after section 28 and shall have effect as section 28A of the principal enactment:—

“Prohibition against the listing of shares in certain cases.
28A. Where shares in any public company are allotted to any person prior to its listing in a licensed stock exchange, no shares or any security convertible to shares in any such company shall be listed on a licensed stock exchange within a period of one year from the date of the last allotment, unless the written approval of the Commission is obtained for that purpose prior to such listing.”

Insertion of new section 29A in the principal enactment.
17. The following new section is hereby inserted immediately after section 29 and shall have effect as section 29A of the principal enactment:—

“Issue of securities.
29A. (1) No listed public company or any public company which has applied to obtain a listing in a licensed stock exchange, shall make any issue of securities unless the issue has been approved by the Commission or any person authorized in that behalf by the Commission.

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(Amendment), Act, No. 18 of 2003

(2) For the purposes of this section, “issue of securities” means —
(a) in relation to a public company which has applied to obtain a listing, an introduction, an offer for subscription, an offer for sale or any placement of securities on a licensed stock exchange;
(b) in relation to a listed public company —
(i) new issues or offer for sale of securities to the public, whether such issues or offers for sale are by way of public issues or otherwise or any placements of securities;
(ii) rights issues of securities;
(iii) bonus issues of securities;
(iv) schemes of arrangements, schemes of reconstruction, take over schemes, share option schemes and acquisition of assets by way of issues of securities.”

18. Section 31 of the principal enactment is hereby repealed.
    Repeal of section 31 of the principal enactment.

19. The heading appearing in Part IIIA immediately before section 31A of the principal enactment is hereby repealed and the following heading substituted therefor:—
    “GRANT OF A LICENCE TO OPERATE A UNIT TRUST”
    Replacement of heading in Part IIIA of the principal enactment.

20. Section 31A of the principal enactment is hereby amended by the renumbering of that section as section 31 of that enactment.
    Renumbering of section 31A of the principal enactment.

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(Amendment), Act, No. 18 of 2003

Replacement  
of section 31B of  
the principal  
enactment.

21. Section 31B of the principal enactment is hereby  
repealed and the following section substituted therefor :—  

“Requirements  
to be complied  
with for the  
purpose of  
granting a  
licence to  
operate a unit  
trust.

31A. (1) No licence shall be granted under  
this Part for the operation of a unit trust,  
unless—  

(a) the trustee has been approved by the  
Commission ; and  

(b) the managing company complies with  
the terms and conditions set out in Part  
IV of the Schedule hereto.  

(2) Notwithstanding the provisions of  
paragraph (a) of subsection (1), where the  
trustee approved by the Commission is replaced  
by the appointment of a new trustee after the  
issue of a licence, such licence shall be deemed  
to be valid and continue in force until the new  
trustee is approved by the Commission.”  

Insertion of  
new section  
31B in the  
principal  
enactment.

22. The following new section is hereby inserted  
immediately after section 31A and shall have effect as section  
31B of the principal enactment :—  

“Withdrawal  
of approval of  
a trustee.

31B. (1) The Commission shall withdraw  
the approval of a trustee of a unit trust where  
the Commission is satisfied that the trustee of  
that unit trust—  

(a) has acted in breach of any provision of  
this Act or any rules or regulations made  
thereunder ;  

(b) has ceased to be of good financial  
standing ; or  

(c) is guilty of malpractice or irregularity  
in the management of its affairs.  

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(Amendment), Act, No. 18 of 2003  

(2) Upon withdrawal of any approval under  
subsection (1), the trustee shall be deemed to  
have retired but such retirement shall not take  
effect until a new trustee duly approved by the  
Commission has been appointed.”  

Amendment of  
section 31C of the  
principal  
enactment.

23. Section 31C of the principal enactment is hereby  
amended by the substitution for the words “under section 31A  
the Commission,”, of the words “under section 31, the  
Commission,”.  

Amendment of  
section 31D of the  
principal  
enactment.

24. Section 31D of the principal enactment is hereby  
amended as follows :—  

(1) by the repeal of subsections (1), (2), (3) and (4) of  
that section, and the substitution therefor of the  
following subsections :—  

“(1) The Commission shall cancel or suspend  
the licence granted to a managing company in  
respect of a particular unit trust, where the  
Commission is satisfied that —  

(a) the managing company of such unit trust  
has acted in breach of any provision of  
this Act or any rules or regulations made  
thereunder ;  

(b) the managing company of such unit trust  
has ceased to be of good financial  
standing ;  

(c) the managing company of such unit trust  
is guilty of malpractice or irregularity  
in the management of its affairs ;  

(d) the managing company of such unit trust  
has been dismissed by the trustee of a  
unit trust ; or  

(e) the approval granted to the trustee of  
such unit trust has been withdrawn by  
the Commission under section 31B and  
a new trustee has not been approved by  
the Commission.

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(Amendment), Act, No. 18 of 2003

(2) Before the cancellation of a licence granted to a managing company in respect of a particular unit trust in terms of the preceding subsection, such managing company shall be given an opportunity to show cause as to why such licence should not be cancelled.

(3) Where the licence granted to a managing company in respect of a particular unit trust is cancelled, it shall be the duty of such managing company to forthwith surrender its licence to the Commission.

(4) Where the Commission is satisfied that the managing company in respect of a particular unit trust has contravened the provisions of paragraph (a), (b) or (c) of subsection (1) and that such contravention is not considered by the Commission as being of a serious nature, it may, in lieu of acting under subsection (1), direct such managing company to take whatever action the Commission may consider appropriate to —

(a) rectify or set right the condition resulting from such contravention; or

(b) to comply with the provisions of this Act or any rule or regulation made under this Act or to desist from continuing such contravention.

(2) in subsection (5) of that section by the substitution for the words “trustee or managing company” wherever those words occur in that subsection, of the words “managing company”;

(3) by the substitution for the marginal note to that section, of the following marginal note:—
“Cancellation of a licence granted to a managing company”.

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(Amendment), Act, No. 18 of 2003

25. Section 31E of the principal enactment is hereby amended as follows :—

(1) by the repeal of subsection (1) of that section and the substitution therefor of the following subsection :—

“(1) Any person aggrieved by a decision of the Commission —
(a) refusing to grant a licence under section 31C ; or
(b) cancelling or suspending a licence under section 31D,
may appeal against such decision to the Court of Appeal, within fourteen days from the date on which the decision was communicated to such person.”;

(2) by the repeal of subsections (2) and (3) of that section ;

(3) by the re-numbering of subsections (4) and (5) of that section, as subsections (2) and (3) thereof ; and

(4) in the re-numbered subsection (3) of that section by the substitution for the words “the decision of the Secretary to the Ministry of the Minister”, of the words “the decision of the Commission”.

Amendment of section 31E of the principal enactment.

26. Section 31F of the principal enactment is hereby amended as follows :—

(1) in subsection (1) of that section by the substitution for the words “of a licensed unit trust”, of the words “relating to a unit trust”; and

(2) in subsection (2) of that section by the substitution for the words “a licensed unit trust”, of the words “a unit trust”.

Amendment of section 31F of the principal enactment.

3–

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(Amendment), Act, No. 18 of 2003

Amendment of section 31G of the principal enactment.
27. Section 31G of the principal enactment is hereby amended by the substitution for the words “his” and “person” wherever they appear in that section of the words “its” and “managing company”, respectively.

Replacement of section 31H of the principal enactment.
28. Section 31H of the principal enactment is hereby repealed and the following section substituted therefor :—
“Restriction on the use of the words “unit trust”.
31H. No person shall use the words “unit trust” unless he has been licensed to operate such unit trust under section 31C.”

Replacement of section 31I of the principal enactment.
29. Section 31I of the principal enactment is hereby repealed and the following section is substituted therefor :—
“Restriction on issue of advertisement inviting investment in unit trust.
31I. No person shall issue or publish or cause to be issued or published an explanatory memorandum or advertisement inviting the public to invest in units of a unit trust, unless such person has been licensed as a managing company of such unit trust and has obtained prior approval of the Commission for the contents of such explanatory memorandum or advertisement and for its issue or publication.”

Amendment of section 31J of the principal enactment.
30. Section 31J of the principal enactment is hereby amended by the substitution for the words “a licensed unit trust” wherever they appear in that section, of the words “a unit trust”.

Insertion of new section 33A in the principal enactment.
31. The following new section is hereby inserted immediately after section 33 and shall have effect as section 33A of that enactment :—
“Offences under this Part.
33A. Any person who contravenes any provision of this Part of this Act shall be guilty of an offence and shall on conviction after summary trial by a Magistrate be liable to a fine not less than one million rupees or to imprisonment of either description for a term not less than two years and not exceeding five years or to both such fine and imprisonment.”

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(Amendment). Act, No. 18 of 2003

32. Section 34 of the principal enactment is hereby amended in subsection (1) thereof as follows :—
    (1) by the substitution in paragraph (b) of that subsection for the words “performance of his functions.”, of the words “performance of his function ; or”; and
    (2) by the insertion immediately after paragraph (b) of that subsection of the following new paragraph :—
    “(c) he has access to information in relation to listed securities, which he knows, is unpublished price sensitive information and which it would be reasonable to expect him not to disclose except in the course of performing his duties.”.

Amendment of section 34 of the principal enactment.

33. Section 35 of the principal enactment as amended by Act No. 26 of 1991 is hereby further amended in subsection (2) of that section by the substitution in paragraph (b) of that subsection for the words and figures “section 15, section 20 and section 31A”, of the words and figures “section 15, section 19A, section 20 and section 31;”.

Amendment of section 35 of the principal enactment.

34. Section 38 of the principal enactment as amended by Act No. 26 of 1991 is hereby further amended as follows :—
    (1) in subsection (1) of that section, by the substitution for the words “resulting from the failure of a licensed stock broker or licensed stock dealer to meet his contractual obligations.”, of the words “as a result of any licensed stock broker or licensed stock dealer being found incapable of meeting his contractual obligations.”; and
    (2) in subsection (2) of that section —
    (a) by the substitution in paragraph (b) of that subsection for the words “under section 51A.”, of the words “under section 51A;” and

Amendment of section 38 of the principal enactment.

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(b) by the addition immediately after paragraph (b) thereof, of the following new paragraph :—
“(c) such sums of money as may be credited from the Cess Fund under section 14B.”.

Amendment of
section 40 of the
principal
enactment.

35. Section 40 of the principal enactment is hereby amended in subsection (1) of that section, by the substitution for the words “due to the failure of a licensed stock broker or a licensed stock dealer to meet”, of the words “as a result of any licensed stock broker or a licensed stock dealer being found incapable of meeting”.

Replacement of
section 45 of the
principal
enactment.

36. Section 45 of the principal enactment is hereby repealed and the following section substituted therefor :—

“Production of
documents
and
disclosure of
information.

45. (1) The Commission or a person authorized in that behalf by the Commission may by notice in writing require any person within such period as shall be specified in the notice, to furnish any information or produce any document (other than any information or document which is prohibited from being disclosed or produced under any law which provides for the imposition and recovery of any tax) as shall be specified in such notice and as the Commission may consider necessary for the proper exercise of its powers or the discharge of its functions under this Act.

(2) It shall be the duty of any person who receives a notice under subsection (1) notwithstanding anything to the contrary in any written law, comply with the requirements of such notice within the period specified therein and where in compliance with such notice such person discloses any information or produces any document which he is prohibited from doing under any written law, such disclosure or production shall, notwithstanding anything to the contrary in such written law, not be deemed to be a contravention of the provisions of such written law.”

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(Amendment), Act, No. 18 of 2003

(3) No information furnished or the contents of a document produced, in compliance with a notice issued under this section, shall be published or communicated by the Commission to any other person, except with the consent of the person furnishing such information, or producing such document, as the case may be or in the course of the discharge of the functions of the Commission.”.

37. Section 46 of the principal enactment as amended by Act No. 26 of 1991 is hereby further amended as follows :—

(1) by the repeal of subsections (1), (2) and (3) of that section and the substitution therefor of the following subsections :—

“(1) The Commission may establish a Committee consisting of three members of the Commission to hear and determine—

(a) complaints by any person relating to the professional conduct or activities of a licensed stock exchange, any licensed stock broker or licensed stock dealer of such stock exchange or of any listed public company or the licensed managing company or trustee of any unit trust or a registered market intermediary ;

(b) complaints by any licensed stock broker or licensed stock dealer relating to the professional conduct or activities of the licensed stock exchange of which such stock broker or stock dealer is a member ;

(c) any matter referred to it for hearing and determination, by the Commission.

Amendment of section 46 of the principal enactment.