CmaBoardReleases
Title: Handling Insider Information
Dear Investor:
As part of the Capital Markets Authority's role of raising the awareness of the dealers in securities' activity, and achieving fairness and transparency in such activities, and in order to enhance the adoption of the sound practice of the activities related to dealing in securities, which include the sources of obtaining the information related to making the decision of purchasing or selling, therefore the Authority emphasizes the importance of protecting the dealers in securities' activity from committing any of the crimes mentioned in Law No. 7 of 2010 regarding the "Establishment of the Capital Markets Authority and Regulating Securities' Activity", which are related to handling the insider information.
When does a person become an insider or a beneficiary from insider information?
Article (1) of Law No. 7 of 2010 regarding the "Establishment of the Capital Markets Authority and Regulating Securities' Activity" defined the insider as any person who, by virtue of his position, is in possession of information or data that has a substantial effect on a listed company which is not available to the public, while Article (118) of the same Law convicted any insider who benefited or took advantage of insider information by purchasing or selling securities or the disclosure of insider information or give an advice based on insider information to someone other than the insider. The person who deals in securities while in possession of the insider information shall be deemed to have benefited therefrom if such person is aware thereof at the time of sale or purchase.
Dear Investor:
Make sure to obtain the information related to making the decision of purchasing or selling any security from its right sources, and avoid benefiting from insider information that may cause violating the provisions of the Law and being punished according to the penalties provided for in the Law, which may be imprisonment for a term not exceeding five years and a fine not less than the amount of the benefit achieved or losses avoided or an amount of ten thousand Dinars, whichever is higher, and not more than three times the benefit achieved or losses avoided or the amount of one hundred thousand Dinars, whichever is the higher, or by either of these two penalties.