s 12 Withdrawal of approval of exchange
(1) The Minister may, on the recommendation of the Commission, by notice published in the Gazette, and by such other means as the Commission considers appropriateβ (a) withdraw an approval granted under section 8 to an exchange, with effect from the date specified in the notice; or (b) direct the exchange to cease to provide or operate such facilities, or to cease to provide such services, as are specified in the notice, with effect from the date specified in the notice. (2) The Minister shall not withdraw an approval or issue a direction under subsection (1) unless the Minister, on the recommendation of the Commission, is satisfied that it is appropriate to do so for the protection of investors, or in the public interest or for the proper regulation of markets in securities or futures contracts, where any of the following circumstances occurs: (a) the exchange ceases to operate its stock market or futures market, as the case may be; (b) the exchange is being wound up or otherwise dissolved, whether within or outside Malaysia; (c) the exchange has contravened any term or condition of its approval or is charged with any offence under any securities laws; (d) the exchange has failed to comply with a condition, requirement or direction given under section 26, 354 or 355; (e) any information provided for the purposes of section 8 was false or misleading in a material particular; (f) a judgement debt against the exchange has not been satisfied in whole or in part; (g) a receiver, a receiver and manager, or equivalent person has been appointed, whether within or outside Malaysia, in respect of any property of the exchange; (h) the exchange has, whether within or outside Malaysia, entered into a compromise or scheme of arrangement with its creditors, being a compromise or scheme of arrangement that is still in operation; (i) the exchange on its own accord applies to the Minister to withdraw the approval as a stock exchange or a futures exchange granted to it and the Minister, on the recommendation of the Commission, thinks it fit to do so. (3) For the purposes of paragraph (2)(a), an exchange shall be deemed to have ceased to operate its stock market or futures market, if it has ceased to operate its stock market or futures market, as the case may be, for a period of one month unless it has obtained the prior approval of the Minister to do so. (4) Notwithstanding the withdrawal of an approval or the issuance of a direction under subsection (1), the Minister may permit the exchange 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 Minister may specify in the notice published under that subsection for the purpose ofβ (a) closing down the operations of the exchange or ceasing to provide the services as specified in the notice; or (b) protecting the interest of investors or the public interest. (5) Where the Minister has granted permission to an exchange under subsection (4), the exchange shall not, by reason of its carrying on the activities in accordance with the permission, be regarded as having contravened section 7. (6) The Minister shall not take any action under subsection (1) without giving an exchange an opportunity to be heard. (7) Where an exchange has ceased to comply with any term or condition specified in section 8, or where the Minister receives a recommendation from the Commission under this section, the Minister may, instead of withdrawing the approval under subsection (1), direct that trading on the exchange be suspended until such time as the exchange has, to the satisfaction of the Minister, complied with such term or condition, or rectified the matter forming the basis of the recommendation by the Commission, or until the Minister revokes the direction. (8) The Minister shall give the exchange not less than fourteen daysβ notice in writing of his intention to direct suspension of trading under subsection (7) and the notice shall specify the grounds for the suspension.