Egypt Reports 587 New Cases of Covid-19    HRH Crown Prince Congratulates President of Ghana on His Country's National Day    Weather Forecast for Friday    Custodian of the Two Holy Mosques Congratulates President of Ghana on His Country's National Day    Coalition to Restore Legitimacy in Yemen: Interception, Destruction of Bomb-Laden UAV Launched by Terrorist, Iran-Backed Houthi Militia Toward Khamis Mushait City    GACA give nod to AlUla airport for receiving international flights    CITC launches ‘Game Mode' initiative to support video game market    'Get back to basics,' urges WHO as Europe records first rise in COVID-19 cases in 6 weeks    Deadly violence mars reunion between schoolgirls and parents in Nigeria    Anti-Muslim hatred has reached 'epidemic proportions' says UN rights expert    ‘Limited' progress in closing Syria chemical weapons file, UN Security Council told    Wall Street Closing    AlUla International Airport Starts Receiving International Flights    Coalition to Restore Legitimacy in Yemen: Royal Saudi Air Force Intercepts, Destroys Ballistic Missile Launched by Terrorist, Iran-Backed Houthi Militia Toward the Kingdom    Saudi and US air forces conclude joint training exercise    Saudi human rights chief holds virtual meeting with British PM's special envoy    Yasir Seaidan snatches early lead at Sharqiyah International Baja Toyota Al-Mogheera, Al-Tuwayjiri ahead in motorcycle and quad categories    Bahrain Condemns Terrorist Houthi Militia's Launch of Ballistic Missile, Drone towards Saudi Arabia    UN report calls for scaling-up carbon capture, use and storage    Terrorist motive being probed after seven stabbed in Sweden    Saudi Arabia prepares to host international off-road racing series Extreme E    Survey: Stay at home enhanced health awareness, family bonds and social responsibility    Saudi Stock Exchange Main Index Ends Trading Lower at 9,242.28 Points    New-normal IT stacks are tempting targets; we need a new approach to defend them    "Noor Riyadh" to illuminate capital city from March 18    SAGO Issues Tender to Import 540,000 Tons of Barley    Dania Akeel becomes first ever Saudi female to tackle an international rally Sharqiyah International Baja gets under way with Thursday's qualifying stage    On behalf of Crown Prince, foreign minister receives Arab Development Action Shield    Bahrain, India discuss ways to boost cooperation    Untreated hearing loss threatens nearly 2.5 billion people worldwide — WHO    SEC Introduces Investment Opportunities for Electrical Industries with Japanese Companies    AlUla — Journey Through Time photography exhibition in Milan set    HRH Crown Prince Attends Diriyah Formula E Race    Dutch De Vries Wins Inaugural Round of Formula E Diriyah Competitions 2021    KSU Medical City Participates with Medical Center to Ensure Safety of Formula E Participants    CEO of Formula E Highlights Strong Partnership with Saudi Arabia    Film Commission Launches 28 Cinematic Projects for Winners of Daw' Film Competition    SASCA in Dammam Sets a Deadline for Receiving Participations in International Video Art Forum    Saudi Film Commission Opens Registration Doors for Digital Filmmakers' Program    Saudi Arabia Names " Scales" Film to Represent it in Oscars    Council of Senior Scholars: Muslim Brothers' Group Don't Represent Method of Islam, rather only Follows its Partisan Objectives, Violating our Graceful Religion    Court facilitates young woman's marriage after stripping father's guardianship    Bahrain's top Islamic body condemns attempts to insult Muslim symbols    Saudi man accused of harassing foreign wife asked to be produced before court Court allows divorce, custody of children by mother    S. P. Bala, legendary Indian singer, dead at 74    Eid Al-Adha Prayer Performed at the Grand Holy Mosque    Pilgrims Perform Dhuhr and Asr Prayers in Arafat Holy Site    Senior Scholars Council Issues Decision No. 246 Regarding Attendance of Friday Prayer and Prayers at Mosques in a Case of Spread of Epidemic or Fear of its Spread    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

Saudi capital market regulator issues awareness booklet to thwart insider trading crime
Published in The Saudi Gazette on 05 - 09 - 2016

The Saudi Capital Market Authority (CMA) issued an awareness booklet to explain trading based on inside information (insider trading), which is a prohibited activity in accordance with Article 50 of the Capital Market Law as well as the regulations and rules issued by CMA – specifically Market Conduct Regulations.
The booklet comes as a part of endorsing continuous awareness efforts about illegal practices to the Capital Market Law and its Implementing Regulations, especially practices related to Insider Trading in the Saudi Capital Market, it's also in line with the CMA's efforts to develop the Saudi Capital Market and protecting market and investors from unfair and unsound practices along with seeking to achieve fairness, efficiency and transparency in Securities transactions.
Article 50 of the Capital Market Law states "Any person who obtains, through family, business or contractual relationship, inside information (insider) is prohibited from directly or indirectly trading in the security-related to such information, or to disclose such information to another person with the expectation that such person will trade in such security."
Insider information means – as defined by the Capital Market Law –information obtained by the insider, which is not available to the general public, has not been disclosed, and such information is of the type that a normal person would realize that in view of the nature and content of this information, its release and availability would have a material effect on the price or value of a security related to such information, and the insider knows that such information is not generally available and that, if it were available, it would have a material effect on the price or value of such security.
The article also states that "No person may purchase or sell a security based on information obtained from an insider."
Further, in pursuant to the royal order to transfer the terms of reference of entities and committees relating to the investigation and prosecution of criminal offenses to the Bureau of Investigation and Prosecution (BIP), the powers of investigating and prosecuting violators of Article 50 of the Capital Market Law has been transferred to BIP, in addition to another two articles which were also transferred to BIP – being Article 31 and Article 49.
According to this, insider trading is one of the criminal offenses in the Kingdom. Hence, it is prohibited for both the insider and any other person to trade based on insider information. The penalty for such a crime may reach to imprisonment.
The booklet, available on CMA's website, contains examples of insider trading and CMA's role in addressing such practices, along with advice and tips for companies in order to protect their internal information from leakage. Among the content of the booklet is also the need for the company to set up internal written policies and procedures to ensure the protection of its internal information against leakage and to work on applying and periodically updating such policies and procedures. It recommended to limit individuals obtaining such sensitive internal information and make a list of their names, and to work on reducing their number as much as possible. It also includes several advices and tips on Information Technology, Continuous Training and Awareness, Chinese Walls and Confidentiality Agreements. — SG

Clic here to read the story from its source.