§ 11.16 a.m.
§ Lord BoothbyMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government whether they will consult the Stock Exchange Committee about what means, if any, can be devised to put an end to the so-called "dawn raids" on shares, carried out in secret, which injure existing shareholders, and thus prevent companies from carrying out one of their primary functions, which is to protect their interests.
§ Lord TrefgarneMy Lords, the regulation of the stock market lies in the hands of the Stock Exchange Council and the other self-regulatory bodies. The Council for the Securities Industry promulgated rules on this matter in December 1980. They apply to substantial acquisitions of shares in listed companies, and they appear to tackle the problem constructively and sensibly.
§ Lord BoothbyMy Lords, arising out of that Answer, may I ask the noble Lord whether he realises that there is a certain section of opinion in the City of London which thinks that some legislation might be necessary in order to enforce the decisions of the Stock Exchange Council? They are not quite happy about the present situation, and will he have further consultation with them?
§ Lord TrefgarneMy Lords, as the noble Lord will appreciate, it is of course our policy to rely on the self-regulatory mechanism wherever that is possible, but wherever there is a clear failing or shortcoming in the self-regulatory mechanism we are always ready to consider what we can do by way of legislation, if that proves necessary. Indeed, there is of course a Companies Bill going through Parliament at the present time, in which there is reference to some of these matters.