Section 41 Investments and Securities Act 2025

Section 41 of the Investments and Securities Act 2025 is about Establishment and operation of a financial market infrastructure. It is under Part V (Registration and Regulation of Securities Exchanges, Financial Market Infrastructures and other Self Regulatory Organisations) of the Act. It provides as follows:

(1) A person shall not establish or operate a financial market infrastructure as defined in this Act unless the person has obtained a certificate of registration from the Commission in accordance with the provisions of this Act and the rules and regulations made under it.

(2) Where any person contravenes subsection (1) —
(a) the Commission shall shut down its operations and seal up its premises immediately or within such timeframe as the Commission may determine; and

(b) each of the directors, promoters or any person who can be regarded as being in control of the company shall be deemed to have committed an offence and is liable on conviction to a fine of not less than the prescribed paid-up share capital of the relevant financial market infrastructure function as specified by the Commission or to imprisonment for a term of not less than five years or both.

(3) The Commission may in lieu of prosecution under subsection (2), impose a penalty of not less than the prescribed paid-up share capital of the relevant financial market infrastructure function as specified by the Commission.