(1) Subject to this section and regulations made under it, a person shall not sell securities to a purchaser unless, at the time when he sells them-

(a) he has or, where he is selling as agent, his principal has; or

(b) he believes on reasonable grounds that he has, or where he is selling as agent, that his principal has, an existing exercisable and unconditional right to vest the securities in the purchaser.

(2) A person who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding 100 penalty units or to imprisonment for a term not exceeding six months or to both.[As amended by Securities Industry (Amendment) Act, 2000 (Act 590), sch. to s.13].

(3) For the purpose of this section, where a person-

(a) implies the sale of securities;

(b) offers to sell securities;

(c) holds himself out as entitled to sell securities; or

(d) instructs a dealer to sell securities, he shall be deemed to sell the securities.

(4) This section shall not be regarded as contravened by any sell of securities on or through a stock market outside Ghana. [As inserted by the Company Code (Amendment) Act, 1994 (Act 474) s. 7(a)].