| 1.2 Objects of the Danish Securities Council Pursuant
to section 83 of the Danish Securities Trading, etc. Act, the objects of the Danish
Securities Council are to be instrumental in promoting a smooth Danish securities market
which is so efficient, transparent and competitive that it will be attractive to issuers,
investors and securities dealers and which will comply with international standards.
1.2.1 Supervision of the market
Through its supervision of the market the Danish Securities Council is to
work for a fair pricing of Danish listed securities. The objective is to ensure efficient
financing opportunities for Danish issuers of securities and to create the best possible
security and transparency for investors.
The Danish Securities Council supervises the market in close and regular interaction
with the companies on the securities market.
1.2.2 Issue of rules
The Danish Securities Trading, etc. Act provides that the Danish Securities
Council shall lay down specific rules governing the following:
- Admission, etc. of securities to listing or trading on a stock exchange.
- The contents of prospectuses.
- Exemption from the obligation to draw up a prospectus.
- Publication of prospectuses and material concerning offers.
- Delisting and suspension of securities from listing.
- Issuers’ and shareholders’ obligations to disclose information.
- Obligation to submit an offer on the transfer of a shareholding in a listed company.
- Contents and publication of the documents of the offer.
- Reporting of transactions in (agreements concerning transfer of) listed securities.
- The contents etc. of the offer prospectus and payment of fees for the handling of
prospectuses.
Moreover, the Danish Securities Council may lay down rules governing:
- Inclusion of other instruments and contracts under the Act.
- Exemption of specified instruments from the Act.
- Good securities trading practices.
- Extension of the obligation to report to include unlisted securities other than those
traded in an authorised market place, or others than securities dealers.
- Exemption from the obligation to draw up an offer prospectus for securities which are
not to be admitted to listing on a stock exchange.
- The detailed contents of the material concerning offers.
- Money-market brokers’ operation of markets for listed money- market related
securities.
The executive orders issued by the Danish Securities Council are listed in Appendix 1.
A more detailed description of the background etc. of these executive orders is found in
the 1996 report of the Danish Securities Council.
1.2.3 Authority to which reporting is made
Various rules issued by stock exchanges, authorised market places and
clearing centres shall be notified to the Danish Securities Council pursuant to the Danish
Securities Trading, etc. Act.
This applies to:
- The rules laid down by a stock exchange governing the terms and conditions of the
operation and transparency of the market.
- The rules laid down by a stock exchange governing access to the market, including
participation agreements.
- Rules of Ethics governing stock exchange operations.
- The supplementary provisions of a stock exchange governing the operation of the market,
including provisions concerning the obligation to disclose information, the reporting of
transactions for regular market monitoring and information purposes, conditions for
admission to trading or listing, and the contents of prospectuses.
- Rules laid down by a stock exchange governing payment of fees for reporting and
publication.
- The rules laid down by an authorised market place governing the admission of securities
to trading in the market place.
- The rules laid down by an authorised market place governing the obligation of issuers
and shareholders to disclose information.
- The rules laid down by an authorised market place governing the terms for being a member
of the market place.
- The rules laid down by an authorised market place governing the reporting of trading for
regular market monitoring and information purposes.
- The rules laid down by an authorised market place governing the conditions for
discontinuation of trading in unlisted securities.
- The rules laid down by a clearing centre governing clearing and settlement as well as
the rules governing the participation of a clearing member, including the conditions that
clearing members must meet if they are to participate in the clearing and settlement of
their own, third-party or their own and third-party transactions.
- The rules laid down by a clearing centre governing the securities that can be cleared,
settled or cleared and settled by the centre.
1.2.4 Authority to make decisions
The Danish Securities Council makes decisions as specified in the Danish
Securities Trading, etc. Act in a number of specific cases, e.g. decisions about exemption
from the obligation to submit a redemption offer and about approval of offer prospectuses.
The Council may direct stock exchanges, authorised market places and clearing centres to
change the rules issued by the undertakings and reported in pursuance of the Act to the
Danish Securities Council or it may lay down supplementary rules for these areas, in
addition to making decisions in specific cases covered by the executive orders issued by
the Danish Securities Council, cf. Appendix1.
1.2.5 Board of Appeal
The Danish Securities Council is the Board of Appeal in cases concerning
decisions made by stock exchanges, authorised market places, clearing centres and central
securities depositories in matters of a far-reaching and fundamental nature.
1.2.6 Opinions
The Danish Securities Council may offer its opinion in matters submitted to
it by the Danish Financial Supervisory Authority, including questions as to whether an
undertaking or a market meets the conditions for carrying on stock exchange business.
   
Published by the Danish Securities Council, june 1998
Electronic edition by Net Bureauet |
