Sunday, Nov 22, 2015
Dubai: Saudi Arabia’s capital markets regulator in a statement reiterated rules and regulations on insider trading, calling the act as a “criminal offence”.
“Any person who obtains, through family, business or contractual relationship, inside information 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,” the Capital Market Authority said in a statement.
The CMA said it has alerted members of boards of directors, senior executives, employees of listed companies after obtaining insider information through their families, business, or contractual relationship.
CMA also warned that it will not hesitate to apply penalties on violators of the Capital Market Law and its implementing regulations as well as protect the investors from unfair practices that include cheating, manipulation and fraud or through insider information.
As part of its efforts to protect investors, CMA said it has issued an awareness guidebook that includes several examples for violations to the Capital Market Law and its implementing regulations.
Staff Report
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