Securities and Futures Commission chairman Anthony Neoh says taking commissions for the sale of floor seats is considered a grey area.
Mr Neoh was testifying in the High Court at the trial on bribery charges of former stock exchange vice-chairman Chen Po-sum, who is alleged to have solicited and accepted $1.6 million in relation to the transfer of stock exchange seats in 1993 and 1994.
Chen, 65, was the convenor of the committee that approved the membership and the transfer of exchange seats. She denies the allegations.
'The issue of whether [approval committee members] should take a commission is a grey area,' Mr Neoh said.
If a member were 'involved in the transfer through some pecuniary way, either as an introducer or if he were to receive payment contingent on the outcome of a successfull application, that council member might be under conflict'.
Defence barrister Kevin Egan said the stock exchange did not have a clear policy 'for people who act as introducers' for companies seeking to sell their seats.