1378 74th congress. SESS. II. CH. 462. MAY 27, 1936. 



{erti°ve''dSt^b°y Com- ^^^ ^^ P^^'^ °^ ^""^'^ application ; exccpt that the Commission may, if 

 mission. it appears necessaiy or appropriate in the public interest or for the 



protection of investors, defer the effective date of any such registra- 

 tion as thus amended until the thirtieth day after the filing of such 

 amendment. 

 or^evocation°'orip°d- "The Couunission shall, after approjrjriate notice and opportunity 

 fled causes. for hearing, by order deny registration to or revoke the registration 



of any broker or dealer if it finds that such denial or revocation is 

 in the public interest and that (1) such broker or dealer whether 

 prior or subsequent to becoming such, or (2) any partner, officer, 

 director, or branch manager of such broker or dealer (or any person 

 occupying a similar status or perfonning similar functions), or any 

 person directly or indirectly controlling or controlled by such broker 

 Misleading, etc., or dealer, whether prior or subsequent to becoming such, (A) has 

 tioa*™''° ^ '° ^'''"''''' willfully made or caused to be made in any application for regis- 

 tration pursuant to this subsection or in any document supplemental 

 thereto or in any proceeding before the Commission with respect 

 to registration pursuant to this subsection any statement which was 

 at the time and in the light of the circumstances under which it was 

 Previous conviction, made false or misleading with respect to any material fact; or (B) 

 has been convicted within ten years preceding the filing of any such 

 application or at any time thereafter of any felony or misdemeanor 

 involving the purchase or sale of any security or arising out of the 

 Subject to court in- conduct of the business of a broker or dealer; or (C) is permanently 

 junction, etc. ^j. temporarily enjoined by order, judgment, or decree of any court 



of competent jurisdiction from engaging in or continuing any con- 

 duct or practice in connection with the purchase or sale of any 

 wuifui violations of security; or (D) has willfully violated anj' provision of the Securities 

 ^'"' "'"' Act of 1933, as amended, or of this title, or of any rule or regulation 



fertive'date™freg?stra- thereunder. Pending final determination whether any such regis- 

 tion. tration shall be denied, the Commission may by order postpone the 



effective date of such registration for a period not to exceed fifteen 

 days, but if, after appropriate notice and opportunity for hearing, it 

 shall appear to the Commission to be necessary or appropriate in 

 the public interest or for the protection of investors to postpone the 

 effective date of such registration until final determination, the Com- 

 suspension of regis- niission shall SO Order. Pending final determination whether any 

 such registration shall be revoked, the Commission shall by order 

 suspend such registration if, after appropriate notice and oppor- 

 tunity for hearing, such suspension .shall appear to the Commission 

 to be necessary or appropriate in the public interest or for the pro- 

 Withdrawal from reg- tectiou of invcstors. Any registered broker or dealer may, upon 

 etc."'™ ^ ro-ers, ^^^^^ temis and conditions .as the Commission may deem necessary 

 in the public interest or for the protection of investors, withdraw 

 from registration by filing a written notice of withdrawal with the 

 Cancelation of regis- Commission. If the Commission finds that any registered broker or 

 by 'commissISS'"^""" dealer, or any broker or dealer for wliom an application for regis- 

 tration is pending, is no longer in existence or has ceased to do 

 business as a broker or dealer, the Commission shall by order cancel 

 the registration or application of such broker or dealer. 

 Use of mails, etc., to "(c) No broker or dealer shall make use of the mails or of any 

 b°/frauduient?eta,^de^ means or instrumentality of interstate commerce to effect any trans- 

 ^''*- action in, or to induce the purchase or sale of, any security (other 



than commercial paper, banker's acceptances, or commercial bills) 

 otherwise than on a national securities exchange, by means of any 

 manipulative, deceptive, or other fraudulent device or contrivance. 

 Definition by Com- 'j'j^g Commissiou shall, for the purposes of this subsection, by miles 

 and regulations define such devices or contrivances as ai'e manipu- 

 lative, deceptive, or otherwise fraudulent. 



