Section 237 Investments and Securities Act

Section 237 of the Investments and Securities Act 2025 is about Emergency powers. It is under Part XV (Commodities Exchange and Warehouse Receipts) of the Act. It provides as follows:

(1) Whenever the Commission has reason to believe that an emergency exists, it may direct a commodity exchange or a clearing house to take such action as it considers necessary to maintain or restore orderly trading.

(2) Where a commodity exchange or a clearing house fails to comply with the directives of the Commission under subsection (1) within such time as is specified by the Commission, the Commission may take any action it deems necessary to restore orderly trading.

(3) In this section, “emergency” includes, in addition to threatened or actual market manipulations, any act of government affecting a commodity or any other major market disturbance which prevents the market from accurately reflecting the forces of supply and demand for commodity or any other undesirable situations or practices which in the opinion of the Commission constitutes an emergency.

(4) Without prejudice to subsection (1) where a commodity exchange or a clearing house exercises its powers under its rules to take emergency action, the Commission may modify such emergency action, including setting aside the emergency action.