Stock exchange council members have rejected Pearl Oriental Holdings' legal challenge to the exchange's application procedures.
Pearl Securities, an arm of property investor Pearl Oriental Holdings, this week declared the exchange's articles of association and membership rules 'unlawful, void and of no effect' and 'non-transparent, unfair and outdated'.
The company is seeking to quash a May 5 decision rejecting its membership application and is demanding the exchange council give its application a new hearing.
Pearl pointed out that, according to stock exchange rules, only four votes were needed to reject an application. Pearl Securities had 22 votes of support.
A stock exchange council member said: 'If an applicant does not like the rules, it can choose not to apply to join the exchange.
'I don't think Pearl Securities would say the rules are outdated or unlawful if its application was approved.' The run of small broker collapses had sparked concern, and the exchange was being extremely careful approving new applicants, he said.
