Page:United States Statutes at Large Volume 89.djvu/178

 89 STAT. 118 Notice and hearing.

Registration, denial, suspension, or revocation. Notice and hearing.

Summary suspension.

PUBLIC LAW 94-29—JUNE 4, 1975 " (2) No application pursuant to this subsection shall be approved unless the Commission finds, after notice and opportunity for hearing, that the extension of unlisted t r a d i n g privileges pursuant to such application is consistent with the maintenance of fair and orderly markets and the protection of investors. I n considering an application for the extension of unlisted t r a d i n g privileges to a security not listed and registered on a national securities exchange, the Commission shall, among other matters, take account of the public t r a d i n g activity in such security, the character of such trading, the impact of such extension on the existing markets for such securities, and the desirability of removing impediments to and the progress that has been made toward the development of a national market system and shall not g r a n t any such application if any rule of the national securities exchange making application under this subsection would unreasonably impair the ability of any dealer to solicit or effect transactions in such security for his own account, or would unreasonably restrict competition among dealers in such security or between such dealers acting in the capacity of market makers who are specialists and such dealers who are not specialists.". (2) Paragraph (6) thereof is amended by striking out "section 19(b) of". SEC. 9. Section 12 of the Securities pjxchange Act of 1934 (15 U.S.C. 781) is amended by adding at the end thereof the following new subsections: " (j) The Commission is authorized, by order, as it deems necessary or appropriate for the protection of investors to deny, to suspend the effective date of, to suspend for a period not exceeding twelve months, or to revoke the registration of a security, if the Commission finds, on the record after notice and opportunity for hearing, that the issuer of such security has failed to comply with any provision of this title or the rules and regulations thereunder. No member of a national securities exchange, broker, or dealer shall make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce the purchase or sale of, any security the registration of which has been and is suspended or revoked pursuant to the preceding sentence. " (k) If in its opinion the public interest and the protection of investors so require, the Commission is authorized summarily to suspend t r a d i n g in any security (other than an exempted security) for a period not exceeding ten days, or with the approval of the President, summarily to suspend all t r a d i n g on any national securities exchange or otherwise, in securities other than exempted securities, for a period not exceeding ninety days. No member of a national securities exchange, broker, or dealer shall make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce the purchase or sale of, any security in which t r a d i n g is so suspended. "(1) I t shall be unlawful for an issuer, any class of whose securities is registered pursuant to this section or would be required to be so registered except for the exemption from registration provided by subsection (g)(2)(B) or (g)(2)(G) of this section, by the use of any means or instrumentality of interstate commerce, or of the mails, to issue, either originaHy or upon transfer, any of such securities in a form or with a format which contravenes such rules and regulations as the Commission may prescribe as necessary or appropriate for the p r o m p t and accurate clearance and settlement of transactions in securities. The provisions of this subsection shall not apply to variable annuity contracts or variable life policies issued by an insurance company or its separate accounts.

�