17/12/2013
Confirmed the presence of a single suspected case during the first half of the year
«Market Authority»: trading based on inside information «prohibited act»
CMA said there is one suspected case of trading based on inside information, according to statements issued by the first half of the year. According to the data of the past years, the issues of investigation, on suspicion of trading based on inside information, six cases in 2011, representing 2.1 percent of the total cases of the year, and one in 2012, representing 0.4 per cent of all cases. The capital market authority said in a statement released yesterday that trading based on inside information, in companies listed on the stock market, ' is prohibited, in accordance with the capital market and the regulations of the Commission.
She said, in a statement issued yesterday: that article 50 of the market system, to ban any person, by virtue of a family relationship or business relationship, or a contractual relationship, inside information, trade, directly or indirectly, the security of such information, or to disclose this information to anyone else. And inside information, according to the Commission, the person is informed, that are not available to the general public, and are not posted; that the average person understands, in view of the nature and content of such information, its availability, substantially affect the Security's price, or the value of such information. Under the market system, the prohibition of ' buying or selling securities on the basis of information obtained from a person beginning '. Article prohibits the regulation of market behavior, issued by Commission 21 article; a person familiar, to disclose any inside information to another person, and he knows, or should know, that other person may trade in securities related information.
According to article VI, prohibition of trading on insider information, and the prohibition of trading on uninformed person based on inside information, if he got this information from someone else, he knows or should know that such information. He said for the ' economic ', former adviser at the Saudi capital market authority, said that despite the ban, it is still a deal based on internal information ' to prevail in the stock market in Saudi Arabia, to the extent of up to phenomenon '. Counsel noted Ibrahim Nasser, to lower the impact of corporate results announcements in the stock prices, ' which means potential leak results, trading, before announcing it to the public. Also mentioned, that this also applies to certain declarations on developments. He said: ' the low convictions for this crime in Saudi Arabia, an indicator of the need to enhance the efficiency, and the investigation of such offences.
It was considered that the most effective means of combating such practices, the market authority ' to monitor any suspicious trades before the company announced its financial results or important news, and then track the funds used in the procurement process, to see how the relationship between the trader and company officials. The management control in market supervision Division, the tasks of following up trading operations, daily market trading, and the preparation of periodic reports, to control using the latest regulations in international markets. Oversight aims to ensure that the commitment of the participants in the market, regulations and practices issued by the capital market authority, in order to regulate the market and protect investors. Process control of trade's daily analysis of trading the market, preparing daily reports, and control of the most important changes to listed companies.
Intensive research is conducted on trades and transactions, market data, analysis and review of orders and transactions, and analysis. The electronic control system is ' smart ' to issue alerts about any practices or dealings suspected of violating capital market law and implementing regulations. After analyzing the alerts, reporting any suspicion of violation of capital market law and implementing regulations, shall be forwarded to the Department of market irregularities, to investigate, and make the necessary decisions.
