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. Stock exchange officials were aware a commission was paid on the sale of the On Wah United Securities Co floor seat to Nomura Securities (Hong Kong), Mr Egan said. Minutes of the company meeting where it was decided to unload the A-share seat and the notice of transfer was sent to the chief executive of the stock exchange before the May 1994 sale was approved. 'It was formally declared to the stock exchange and the commissioner of the stock exchange,' Mr Egan said. 'No attempt was made to hide it.' Chen faces eight bribery charges. It is alleged she received $800,000 for supporting a 1994 bid by Nomura Securities (Hong Kong) to buy a seat on the exchange from On Wah. She accepted another $800,000 for the transfer of three A-share seats from Shing On Securities to Emperor Securities, the jury heard. The prosecution alleges Chen solicited money as 'an inducement or reward for her supporting these applications'. The trial is before Mr Justice Pang Kin-kee. CHEN TRIAL SFC chairman Neoh concedes conflict possible on seats payment Defence says no clear policy on giving cash to 'introducers'