(On Behalf of the Office of the Secretary of State)
May 19, 1997
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Referred to Committee on Judiciary
SUMMARY--Makes changes relating to securities exchanges. (BDR 7-515)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to securities exchanges; extending the scope of regulation; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 Chapter 90 of NRS is hereby amended by adding thereto a new section to read as follows:
A person is "associated with" a securities exchange or an applicant for registration as such if he is:
1. An officer, director, shareholder, employee or other agent, client, customer or member of the securities exchange or applicant;
2. A partner, officer or director of a member of the securities exchange; or
3. An employee of a member of the securities exchange who is licensed pursuant to this chapter or registered pursuant to the Securities Exchange Act of 1934.
Sec. 2 NRS 90.453 is hereby amended to read as follows:
90.4531. Except as otherwise provided in subsection 2, a person shall not operate a securities exchange in this state unless it has been registered with the securities division.
2. A securities exchange which is registered with the United States Securities and Exchange Commission is exempt from the requirements for registration set forth in this section.
3. The administrator shall adopt regulations necessary to carry out the provisions of this section, including regulations prescribing:
(a) Requirements for the registration and operation of a securities exchange;
(b) The fees for the registration of a securities exchange; and
[(b)] (c) The requirements for bonding and minimum capitalization [requirements for] of a securities exchange.
4. The administrator shall investigate the qualifications of each person [who applies to the securities division for the registration of] associated with an applicant for registration as a securities exchange. The [person] applicant shall pay the cost of the investigation.
5. The administrator may deny, suspend or revoke the registration of a securities exchange , or place conditions, limitations or restrictions on the registration, if [the administrator] he determines that such action is in the public interest and any of the provisions of subsection 1 of NRS 90.420 are applicable to [the person who applied for the registration of] a person associated with the securities exchange.
Sec. 3 NRS 90.456 is hereby amended to read as follows:
90.456 1. The administrator may charge a fee not to exceed .25 percent of the total value of each transaction involving the purchase, sale or other transfer of a security conducted by a securities exchange located in this state.
2. The administrator may adopt by regulation or order, and shall cause to be published, a table of fees based upon the direct cost of regulating the securities exchange.
Sec. 4 NRS 90.455 is hereby repealed.
TEXT OF REPEALED SECTION
90.455Transactions in securities listed on exchange to be conducted in state.Any transactions, solicitations or other activities directly related to the purchase, sale or other transfer of securities listed on a securities exchange located in this state may only be conducted within this state.