Section 226 Investments and Securities Act

Section 226 of the Investments and Securities Act 2025 is about Rules of commodities exchange. It is under Part XV (Commodities Exchange and Warehouse Receipts) of the Act. It provides as follows:

(1) A commodities exchange shall make rules for the effective performance of its functions, which rules shall be subject to the prior approval of the Commission.

(2) The rules of an exchange shall provide for —
(a) the exclusion from trading on its platform, persons who are not of good character and who do not possess a high degree of business integrity;

(b) the expulsion, suspension, or discipline of license holders for conduct inconsistent with just and equitable principles in the transaction of commodities business, or for contravention of or failure to comply with the rules of the commodities exchange or the provisions of this Act;

(c) the conditions under which commodities may be listed, quoted or admitted on that commodities exchange;
(d) the conditions governing dealings in commodities by the license holders;

(e) the types of commodities which may be dealt in by license holders; and
(f) a fair representation of persons in the selection of members of the board or license holders of the commodities exchange and the administration of its affairs.

(3) An amendment shall not be made to the rules of a commodities exchange, in any form, unless the board of the commodities exchange, has submitted a written application of the proposed amendment to the Commission for approval.

(4) The Commission shall, within 20 business days after receipt of the application on the proposed amendment, notify the commodities exchange of its decision to approve or prohibit the implementation of the proposed amendment.

(5) Where, on the expiration of the period of 20 business days as stated in subsection (4), the Commission fails to notify the commodities exchange of its decision, the amendment shall be deemed approved.

(6) Nothing in this section shall preclude the Commission, after consultation with the board of a commodities exchange, from directing the commodities exchange to amend any rule of the commodities exchange, by a notice in writing specifying the proposed amendment and the date the amendment shall come into effect.

(7) Any notice under this section may be served personally, electronically or by registered post.