“The Securities”: influencing stock markets is a crime punishable by up to 3 years in prison
The Securities and Commodities Authority confirmed that its regulations and law criminalize practices that affect prices, such as rumors and news that would affect the performance of the markets, warning against leaking internal information and repeating rumors in stock markets. She said that this contradicts notions of fairness and transparency.
Imprisonment and fine
The Securities added, in an explanation issued yesterday, that the law is punishable by imprisonment for a period of not less than three months and not exceeding three years, and by a fine of not less than 100 thousand dirhams and not more than one million dirhams, or one of these two penalties, whoever provides any data, or He makes incorrect statements or information that may affect the market value of securities and the investor’s decision to invest or not, or to deal in securities based on undisclosed or undisclosed information that he knew by virtue of his position, or spread malicious rumors about selling or Buying shares, or exploiting undeclared information that could affect the prices of securities, to achieve personal benefits, as every act or transaction based on all of the above is considered null.
Corporate disclosure
The Authority stressed that the financial markets in the state continuously monitor the commitment of the listed companies to disclose essential matters, information and financial data, publish them, the timing of this publication, verify their clarity, and reveal the facts that they express, while taking the necessary measures to refer the violations of the listed companies to the Authority. To decide on them, and at the same time, the Authority monitors and evaluates the disclosures of the listed companies, and inflicts the appropriate penalty according to the laws and regulations against the violating companies, and in the event that the disclosures are not clear, then trading on the shares of the concerned company will be suspended until the company receives a clear and sufficient disclosure.
Permanent coordination
The "securities" confirmed the existence of permanent coordination between the authority and the capital markets in the event of a lack of disclosure, ambiguity and lack of clarity, or the disclosure not including some of the necessary details, as the disclosure is studied and the impact of the lack of disclosure or lack of clarity, or lack of clarity is evaluated. It includes some necessary details on the trading of the securities, followed by taking the appropriate decision to stop trading or not, until the completion of the disclosure of the requirements of the authority and the market in this regard.
Other measures
The authority pointed out that it is taking several other measures to prevent the influence of rumors on trading, foremost of which is the follow-up of the authority’s competent departments, in cooperation with the markets, that is, rumors in the markets, and that the necessary measures are taken in accordance with the provisions of the law and regulations that criminalize such practices, to prevent influencing prices. The authority's competent departments also follow up the news published in the various media outlets, and social media to monitor rumors.
The authority also studies investor reports about any rumors in the market, communicates with listed markets and companies, and takes legal measures to ensure transparency and disclosure in the markets.
Texts and legislation
The authority stressed that it is working to limit the processes of spreading rumors and leaking information as well, through the texts and legislation stipulated in the authority’s regulations, which include the necessity to disclose to the authority and the markets in advance the dates and timing of the company’s board meetings in which the board will discuss decisions that have an impact on price and movement. Shares in the stock market, such as cash dividends, bonus shares, increasing or decreasing the company's capital, splitting the nominal value of the share, and the company buying its shares, at least two business days before the date of the meeting.
She cautioned that it is necessary to provide the Authority and the Markets with the decisions issued in this regard, after approval by the Board of Directors upon them as soon as they are issued, regardless of whether the next day of the meeting is a working day or an official holiday, indicating that if the time of the meeting coincides with the trading hours, trading in shares is suspended. The company until the market is informed of the meeting results