Withdrawal of recognition of exchange company and direction to cease to provide facilities or services
(1) Subject to subsections (4), (5) and (6), the Commission may, after consultation with the Financial Secretary, by notice in writing served on a recognized exchange company-
(a) withdraw the company's recognition as an exchange company with effect from a date specified in the notice for the purpose; or
(b) direct the company to cease with effect from a date specified in the notice for the purpose-
(i) to provide or operate such facilities as are specified therein; or
(ii) to provide such services as are specified therein.
(2) The Commission may by the notice served under subsection (1) permit the recognized exchange company to continue, on or after the date on which the withdrawal or direction is to take effect, to carry on such activities affected by the withdrawal or direction as the Commission may specify in the notice for the purpose of-
(a) closing down the operations of the company or ceasing to provide the services specified in the notice; or
(b) protecting the interest of the investing public or the public interest.
(3) Where the Commission has granted a permission to a recognized exchange company under subsection (2), the company shall not, by reason of its carrying on the activities in accordance with the permission, be regarded as having contravened section 19(1).
(4) The Commission may only serve a notice under subsection (1) in relation to a recognized exchange company that-
(a) fails to comply with any requirement of this Ordinance or with a condition imposed under section 19;
(b) is being wound up;
(c) ceases to operate a market that it has been authorized to operate by virtue of section 19; or
(d) requests the Commission to do so.
(5) Except where responding to a request under subsection (4)(d), the Commission shall not exercise its power under subsection (1) in relation to a recognized exchange company unless it has given the company a reasonable opportunity of being heard.
(6) Except where responding to a request under subsection (4)(d), the Commission shall give the recognized exchange company not less than 14 days' notice in writing of its intention to serve a notice under subsection (1) and the grounds for doing so.
(7) Where the Commission withdraws a company's recognition as an exchange company under subsection (1)(a), it shall cause notice of that fact to be published in the Gazette.
(8) A notice served under subsection (1)(a) shall not take effect-
(a) subject to paragraph (b), until the expiration of the period within which an appeal against the notice may be made under section 33; or
(b) if an appeal against the notice is made under section 33, until the appeal is withdrawn, abandoned or determined.
(9) A notice served under subsection (1)(b) shall take effect immediately.