Investigation Of U.S. Stock Market Approved

Press, Volume C, Issue 29588, 10 August 1961, Page 17

Investigation Of U.S. Stock Market Approved

(N.Z. Press Association— Copyright)

WASHINGTON, August 8. Broad investigation of the American stock market was approved in legislation today. Approval oame from the Interstate Commerce Committee of the United States House of Representatives, which granted 750.000 dollars to the Securities and Exchange Commission (S.E.C.) to carry out the investiga-

. tian. S.E.C. will probe the ' rules and regulations of i registered United States , national securities exchanges ■ and associations of security dealers. Manipulation Alleged The inquiry was prompted I by Congressional concern over reports of possible manipulation and rigging. ; Uni/ted Press International ’ said. The S.E.C. investigation would determine whether rules and regulations were adequate to protect investors. The measure was proposed by the chainman of the House and Finance Committee, Mr Peter Mack, Jr, Democrat. His resolution would require the S.E.C. to submit its report on the investigation to Congress by January, 1963. Mr Mack introduced the measure after the New York [ Stock Exchange issued two warnings against spculation j and the S.E.C. revealed it \ had more manipulation cases ; in various stages of adminisj trative and criminal proceedings than ever before. , The broad study already i had the endorsement, of i S.E.C. chairman, Mr William , Cary. He told members of ' Congress at hearings last [ month that the S.E.C. wanted , to explore several areas. l Among them were: The marketing and distribu--1 tion of mutual fund shares and the relationship between the mutual I funds and the concerns s that advise them on investments, including the i fees paid to advisers. ! Whether the S.EC.’s “full disc losur e’ ’ r equiremen t . should be expanded to cover securities traded ’ over the counter.