26. Application to operate an exchange

the applicant has the capacity to operate an orderly and fair market in relation to securities that are traded through its facilities;

the applicant has the necessary infrastructure to manage any risks associated with its business and operations prudently;

the applicant, in discharging its obligations under paragraph (a), shall have the necessary governance structures to ensure that the exchange shall not act contrary to public interest;

the applicant has sufficient financial, human, automated systems and other resources to ensure the provision of –

an orderly and fair market in relation to securities that are traded through its facilities;

adequate and properly equipped premises for the conduct of its business;

competent personnel for the conduct of its business; and

automated systems with adequate capacity, security arrangements and facilities to manage risks and to meet emergencies;

that the applicant, by rules provide-

for an orderly and fair market in relation to the securities that are traded through its facilities;

for the admission of trading participants;

for the proper regulation and supervision of the business conduct of its trading participants when dealing with clients;

for the exclusion of persons who are not of good character and high business integrity from being recognized as trading participants;

for the expulsion, suspension or disciplining including the imposition of fines on a trading participant and any person acting on behalf of such trading participant, for conduct that is inconsistent with just and equitable principles in the transaction of business or for a contravention of or failure to comply with the rules of the exchange or any provisions of this Act, regulations, rules or directives made thereunder;

for the conditions under which securities may be listed or delisted;

for the conditions governing trading of such listed securities and rules to be followed by companies or other entities that have listed their securities on the exchange;

for the class or classes of securities that may be dealt in or traded on its facilities;

for the prohibition of market misconduct and the manner in which investigations are conducted;

for the conduct of inquiries or investigations into the business conduct of its trading participants;

for the suspension of trading of any given security for the protection of investors or for the conduct of orderly and fair trading;

for the appointment of a disciplinary committee of which the majority of its members are independent of the trading participants or the exchange, to hear and determine disputes-

generally for the carrying on of the business of the exchange with due regard to the need for the protection of investors; and

the interests of the public or the proper regulation of the market shall be served by the granting of the licence.