Page:United States Statutes at Large Volume 48 Part 1.djvu/924

 898 73d C ONGRESS. SESS. II. CH. 404. JUNE 6, 1934 . Proof of good faith, sued shall prove t hat he acted i n good faith and had no kn owledge et suit at law ; under- that such statement was false or misleading. A person seeking to taking, etc' enforce such liability may sue at law or in equity in any court of competent jurisdiction. In any such suit the court may, in its dis- cretion, require an undertaking for the payment of the costs of such suit, and assess reasonable costs, including reasonable attorneys' Contribution be fees, against either party litigant. - tweenpersonsseverally (b) Every person who becomes liable to make payment under this liable. secti on may recove r contribution as in cases of contract f rom any person who, if joined in the original suit, would have been liable to make the same payment. Time limitation for (c) No action shall be maintained to enforce any liability created bringing snit. under this section unless brought within one year after the discovery of the facts constituting the cause of action and within three years after such cause of action accrued. Powers over ex- changes and securities. Authority conferred SEC. 19 . (a) The Commission is authorized, if in its opinion such on Commission. action is necessary or appropriate for the protection of investors- Suspension, etc ., of (1) After appro priate noti ce and oppor tunit y for hearin g, by registration of national exchange. order to suspend for a period not exceeding twelve months or to withdraw the registration of a national securities exchange if the Commi ssion finds t hat such excha nge has viola ted any provi sion of this title or of the rules and regulations thereunder or has failed to enforce, so far as is within its power, compliance therewith by a member or by an issuer of a security registered thereon. Of security. (2) After appropriate notice and opportunity for hearing, by order to deny, to suspend the effective date of, to suspend for a period not exceeding twelve months, or to withdraw, the registration of a security if the Commission finds that the issuer of such security has failed to comply with any provision of this title or the rules and regulations thereunder. Of member. (3) After appropriate notice and opportunity for hearing, by order to suspend for a period not exceeding twelve months or to expel from a national securities exchange any member or officer thereof whom the Commission finds has violated any provision of this title or the rules and regulations thereunder, or has effected any transaction for any other person who, he has reason to believe, is violating in respect of such transaction any provision of this title or th e ru les and regu lati on's the reun der. Of trading in regis- (4) And if in its opinion the public interest so requires, summarily tered security to suspend trading in any registered security on any national securi- ties exchange for a period not exceeding ten days, or with the ap- proval of the President, summarily to suspend all trading on any national securities exchange for a period not exceeding ninety days. Authority to compel (b) The Commission is further authorized, if after making appro- amendment of ex- change rules. priate request in writing to a national securities exchange that such exchange effect on its own behalf specified changes in its rules and practices, and after appropriate notice and opportunity for hearing, the Commission determines that such exchange has not made the changes so requested, and that such changes are necessary or appro- priate for the protection of investors or to insure fair dealing in securities traded in upon such exchange or to insure fair administra- tion of such exchange, by rules or regulations or by order to alter or Sco pe des ignate d. supplement the rules of such exchange (insofar as necessary or appro- priate to effect such changes) in respect of such matters as (1) safeguards in respect of the financial responsibility of members and adequate provision against the evasion of financial responsibility through the use of corporate forms or special partnerships ; (2) the POWERS WITH RESPECT TO EXCHANGES AND SECURITIES