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As enacted
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Part II · Markets and Market Institutions

43. Default proceedings etc. of a clearing house to take precedence

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

Notwithstanding only of an inconsistency with the provisions of any written law relating to the assets of a person subject to insolvency, bankruptcy or winding up, or on the appointment of a receiver, a receiver and a manager, a liquidator or a person in an equivalent capacity, none of the following shall be invalid to any extent in law :–

(a)

a market contract;

(b)

the rules of a clearing house relating to the settlement of a market contract;

(c)

any proceedings or other action taken under the rules of a clearing house relating to the settlement of a market contract;

(d)

a market charge;

(e)

market collateral;

(f)

the default rules of a clearing house; or

(g)

any default proceedings.

(2)

Subject to subsection (1), the powers of a relevant office holder in his capacity as such and the powers of any court under the law of insolvency or the Companies Act, No.7 of 2007 shall not be exercised in such a way as to prevent or interfere with –

(a)

the settlement of a market contract in accordance with the rules of a clearing house; or

(b)

any default proceedings.

Read on from s 44

Part III

Issue of Securities

Read on from Part III

Part IV

Trade In Unlisted Securities

Read on from Part IV

Part V

Market Misconduct

Read on from Part V

Part VI

Finance

Read on from Part VI

Part VII

General

Read on from Part VII