1378 



TiTU CONGRESS. SESS. II. CH. 462. MAY 27. 1936. 



Postponement of ef- 

 fective date by "Com- 

 mission. 



Registration: denial 

 or revocation for speci- 

 fied causes. 



Misleading, etc., 

 statements in applica- 

 tion. 



Previous conviction. 



Subject to court in- 

 junction, etc. 



Willful violations of 

 law, etc. 



Postponement of ef- 

 fective date of registra- 

 tion. 



Suspension of regis- 

 tration. 



Withdrawal from reg- 

 istration by brokers, 

 etc. 



Cancelation of regis- 

 tration or application 

 by Commission. 



Use of mails, etc., to 

 induce purchase or sale 

 by fraudulent, etc., de- 

 vice. 



Definition by Com- 

 mission. 



and as part of such application ; except that the Commission may, if 

 it appears necessary 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. 



''The Commission shall, after appropriate notice and opportunity 

 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, 

 dii-ector, or branch manager of such broker or dealer (or anj^ person 

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

 jDerson directly or indirectlj^ controlling or controlled by such broker 

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

 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 

 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 ai'ising out of the 

 conduct of the business of a broker or dealer; or (C) is permanently 

 or temporarily enjoined by order, judgment, or decree of any court 

 of competent jurisdiction from engaging in or continuing any con- 

 duct or j^ractice in connection with the j^urchase or sale of any 

 security; or (D) has willfully violated any provision of the Securities 

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

 thereunder. Pending final determination whether any such regis- 

 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- 

 mission 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- 

 tection of investors. Any registered broker or dealer may, upon 

 such terms 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 

 Commission. If the Commission finds that any registered broker or 

 dealer, or any broker or dealer for wliom an application for I'egis- 

 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. 



"(c) No broker or dealer shall make use of the mails or of any 

 means or instrumentality of inter.state 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. 

 The Commission shall, for the purposes of this subsection, by rules 

 and regidations define such devices or contrivances as are manipu- 

 lative, deceptive, or otherwise fraudulent. 



