Section 133: Cease trade order

133. Cease trade order (1) Subject to subsections (2) and (3), the Commission may order that a securities exchange be closed for securities transactions. (2) The Commission may make an order under subsection (1) where it is of the opinion that the orderly transaction of business on the securities exchange is being or is likely to be adversely affected due to the occurrence of— (a) an emergency or a natural disaster; or (b) an economic or financial crisis. (3) In the exercise of its power under subsection (1), the Commission shall consult the securities exchange in relation to which the order is made before making the order, unless it is impracticable, undesirable or inexpedient to do so. (4) The order made under subsection (1) shall remain in force for such period as the Commission thinks fit and in any case, for as long as, in the view of the Commission, the securities exchange continues to be affected by the events specified in subsection (2). (5) During the period the order under subsection (1) is in force, the Commission may give such directions to the securities exchange as it thinks fit. (6) Any investment dealer or licensed representative of an investment dealer who deals in securities listed on an exchange in relation to which an order under subsection (1) is in force shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 5 years. (7) Subject to subsection (8), the Commission may order any person to cease any activity in respect of— (a) trading in securities; or (b) any securities. (8) The Commission may order any person to cease trading in securities where the Commission has reasonable suspicion that a breach of this Act, any regulations made under this Act, or any FSC Rules has been or is likely to be committed and such breach is likely to adversely affect the interest of investors. (9) The order shall be effective— (a) from the time the person concerned is notified by registered mail or becomes aware of it; (b) for the period specified in the order. S7 – 49 [Issue 3] Securities Act (10) Any person who issues or trades in securities, to which an order under subsection (7) applies, shall commit an offence, and shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 5 years.