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Revocation of approval of rules.
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106.—(1) The Bank may—
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(a) revoke an approval of the rules of an exchange if the exchange to whom it was granted so requests,
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(b) with the consent of the Minister, revoke an approval of the rules of an exchange if—
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(i) the exchange—
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(I) has not commenced to operate within 12 months of the date on which the approval was granted, or
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(II) has ceased operating and no trading or dealing has been carried on on the exchange during a period of more than 6 months immediately following the cesser,
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(ii) being a company, the exchange is being wound up,
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(iii) the exchange (being an existing exchange) or the promoter of a proposed exchange has obtained the approval of the Bank through false statements or any other irregular means,
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(iv) the exchange becomes unable to meet its obligations to creditors or suspends payment lawfully due by the exchange or by any member thereof,
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(c) with the consent of the Minister revoke the approval if, since the grant of the approval, the circumstances relevant to the grant have changed and are such that, if an application for an approval were made in the changed circumstances, it would be refused.
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(2) Whenever the Bank proposes to revoke an approval (other than in pursuance of a request by the exchange to whom it was granted to do so)—
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(a) it shall notify the exchange concerned that it intends to seek the consent of the Minister to the revocation and of the reasons for the revocation and that the exchange may, within 21 days after the date of the giving of the notification, make representations in writing to the Minister in relation to the proposed revocation,
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(b) the exchange may make such representations in writing to the Minister within the time aforesaid, and
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(c) the Minister shall, before deciding to give or withhold his consent, consider any representations duly made to him under this subsection in relation to the proposed revocation.
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(3) Where an approval of the rules of an exchange is revoked and the exchange is not a company which is being wound up—
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(a) the exchange and the members thereof shall continue to be subject to the duties and obligations imposed by or under this Chapter or section 18 of the Act of 1971 until all liabilities of the exchange and its members have been discharged to the satisfaction of the Bank,
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(b) the exchange shall, as soon as possible after the approval is revoked, notify the Bank and such other persons (if any) as the Bank indicates are to be notified of the measures being taken or proposed to be taken to discharge in full and without undue delay the liabilities of the exchange and the members thereof,
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(c) in the case where—
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(i) that exchange has notified the Bank in accordance with paragraph (b) and the Bank is of the opinion that the measures being taken or proposed to be taken for the purposes of that paragraph are not satisfactory, or
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(ii) that exchange has not so notified the Bank and the Bank is of the opinion that the exchange has failed to so notify as soon as possible after the approval is revoked, or
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(iii) the Bank is of the opinion that that exchange has failed to take all reasonable steps to notify persons which the Bank has indicated, under paragraph (b), are to be notified,
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then the Bank may give a direction in writing to that exchange or to any of its members thereof for such period, not exceeding 6 months, as may be specified therein, prohibiting the exchange or the members thereof so directed from—
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(I) dealing with or disposing of any assets or specified assets of the exchange or of its members in any manner, or
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(II) engaging in any transaction or class of transaction or specified transaction, or
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(III) making payments,
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without the prior authorisation of the Bank, and the Bank may require that exchange or any of its members to prepare and submit to it for its approval within two months of the direction, a scheme for the orderly discharge in full of the liabilities concerned.
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(4) (a) Where the approval of the rules of an exchange is revoked and the exchange is a company which is being wound up, the liquidator of the company shall, in addition to his duties and obligations in respect of the winding up, be subject to the duties and obligations to which the exchange would be subject were it an exchange to which subsection (3) relates and that subsection shall, for the purpose of this subsection, be construed accordingly.
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(b) Notwithstanding paragraph (a), the Bank may, where it revokes an approval and considers it appropriate in the circumstances, remove in writing the duty and obligation imposed on the liquidator concerned to comply with paragraph (b) (as construed by this subsection) of subsection (3) and may impose in writing on that liquidator such further or other duty and obligation which corresponds to that set out in the said paragraph (b).
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(c) Nothing in this subsection shall be construed as affecting any duty or obligation under this Chapter of the members of the exchange concerned.
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(5) The Bank shall as soon as may be after the revocation of an approval of the rules of an exchange publish a notice of the revocation in such manner as it thinks fit.
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