Page:United States Statutes at Large Volume 49 Part 1.djvu/1423

 13 78 Postponement of ef- fe ctive dat e bre Com- mission. Registration; denial or revocation for speci- fied causes . Misleading, etc ., statements in applica- tion . Previous conviction. Subject to court in- jun ction, etc. Willf ul viol ations of law, etc. Postponement of ef- fective date of registra- tion. Suspension of regis- tration. Withdrawal from reg- istration bre brokers, et c. Cancela tion o f regis - tration or application bre C omm issi on. Use of mails, etc ., to in duce pur chas e or sale bre fraudulent, etc ., de- vice. Definition bre Com- mission . 74TH C ONGRESS. SESS. II. CH. 462. MAY 27, 1936. and as part of such application ; except that the Commission may, if it appears necessary or appropriate in the public interest or for the protec tion of in vestors, d efer the e ffective d ate of any such regi stra- tion as thus amended until the thirtieth day after the filing of such amendment. "The Comm issio n sha ll, a fter appro priat e not ice a nd op portu nity for hearing, by order deny registration to or revoke the registration of any broker or dealer if it finds that such denial or revocation is in the public interest and that (1) such broker or dealer whether pri or or subs equen t to becom ing s uch, or (2 ) any part ner, offic er, director, or branch manager of suc h broker or dealer (or any person occupying a similar status or perf orming similar functions), or any person directly or indirectly controlling or controlled by such broker or dealer, whether prior or subsequent to becoming such, (A) has willfully made or caused to be made in any application for regis- tration pursuant to this subsectio n or in any document supplemental thereto or in any proceeding before the Commission with respect to registration pursuant to this s ubsection any statement which was at the time and in the light of the circumstances under which it was made false or misleading with resp ect to any material fact ; or (B) has been convicted within ten years preceding the filing of any such application or at any time thereafter of any felony or misdemeanor involving the purchase or sale of any security or arising out of the conduct of the business of a broker or dealer ; or (C) is permanently or tempo raril y enj oined by o rder, judg ment, or d ecree of a ny co urt of competent jurisdiction from engaging in or continuing any con- duct or practice in connection with the purchase or sale of any se cu ri ty ; or (D) ha s willfull y violated any provi sion of th e Securiti es Act of 1 933, as am ended, or of this ti tle, or of any rule or regulat ion thereunder. Pending final determination whether any such regis- tration shall be denied, the Commission may by order postpone the effective date of such registration for a period not to exceed fifteen days, but if, after appropriate notice and opportunity for hearing, it shall appear to the Commission to be necessary or appropriate in the public interest or for the protection of investors to postpone the effectiv e date of such regis tration un til final determinat ion, the C om- mission shall so order. Pendin g final d etermina tion whet her any such registration shall be revoked, the Commission shall by order suspend such registration if, after appropriate notice and oppor- tunity for hearing, such suspension shall appear to the Commission to be necessary or appropriate in the public interest or for the pro- tection of investors. Any regi stered br oker or dealer ma y, upon such terms and conditions as the Commission may deem necessary in the public interest or for the protection of investors, withdraw from registration by filing a written notice of withdrawal with the C om m i s s i on. If the Commission finds that any registered broker or dealer, or any broker or dealer for whom an app lication for regis- tration is pending, is no longer in existence or has ceased to do business as a broker or dealer, the Commission shall by order cancel the registration or application of such broker or dealer. ""(c) No broker or dealer shall make use of the mails or of any means or instrumentality of interstate commerce to effect any trans- action in, or to induce the purchase or sale of, any security (other tha n com merci al pa per, banke r's a ccept ances, or comme rcial bill s) otherwise than on a national securities exchange, by means of any manipulative, deceptive, or other fraudulent de vice or contrivance. The Commission shall, for the purposes of this subsection, by rules and regul ation s def ine s uch d evice s or contr ivanc es as are manip u- lative, deceptive, or otherwise fraudulent.