s 48 Consequences of registering a supplementary prospectus
(1) This section applies— (a) where a person (“the applicant”) applies for the issue of, subscription or purchase of, any securities pursuant to a prospectus and— (i) in the case of a unit trust scheme or prescribed investment scheme, before the issue of units or transfer of units from the management company or the trustee to the applicant; or (ii) in any other case, before the issue of securities; and (b) the issuer delivers to the Commission for registration a supplementary prospectus that relates to the prospectus. (2) As soon as practicable after the registration of the supplementary prospectus by the Commission, the issuer shall— (a) give to the applicant a written notice or such other notice as may be specified by the Commission— (i) advising the applicant that a supplementary prospectus has been registered by the Commission; (ii) giving the applicant no less than 14 days from the date of receipt of the notice an opportunity to withdraw his application; and (b) ensure that the written notice referred to in paragraph (2)(a) is accompanied by a copy of a supplementary prospectus. (3) If the applicant withdraws his application pursuant to subparagraph (2)(a)(ii), the issuer shall immediately pay to the applicant any moneys that the applicant has paid to the issuer on account of the application. (4) Notwithstanding the provisions of this section, the Commission may, on the written application of any issuer or of its own accord, make an order relieving such person from, or approving any variation of, the requirements of this section. (5) In making an order under this section, the Commission may impose such terms and conditions as it deems fit. (6) The Commission shall not make an order under subsection (4) unless it is satisfied that— (a) compliance with the requirements of this Act is unnecessary for the protection of persons who may normally be expected to deal in those securities, being persons who would reasonably be expected to understand the risks involved; or (b) compliance with the requirements of this Act would impose an unreasonable burden on the issuer. (7) Any person who contravenes subsection (2) or (3) shall be guilty of an offence and shall on conviction be punished with a fine not exceeding three million ringgit or imprisonment for a term not exceeding ten years or both. (8) Any person who fails to comply with any term or condition as may be imposed by the Commission under subsection (5) shall be guilty of an offence.