It was decided to start the process of banning insiders ’trading in public shareholding companies listed in the financial markets, as of December 17, until companies disclose the financial statements for the current year.
The process of banning insiders ’trading comes in accordance with the provisions of the system for trading, clearing, settlement, transfer of ownership and custody of securities issued by the Securities and Commodities Authority in 2001.
The financial markets of Abu Dhabi and Dubai have requested a circular issued for this purpose by the listed joint stock companies and brokerage firms operating in compliance with the implementation of the decision, until the date of the end of the disclosure of their financial statements for the year 2019.
In conjunction with the decision to prohibit insiders ’trading, the Abu Dhabi Securities Exchange requested all companies to update their insiders’ data, in addition to the company’s file on the market’s website, to include any changes witnessed in the insiders ’record during the recent period.
Under (Article 14) of the regulation issued by the Securities and Commodities Authority, it prohibits the trading of the chairman and members of the board of directors of the company whose securities are listed in the market and its general manager or any of the employees familiar with the company’s essential data - by himself or for his account by others or in any other capacity for the account of others - In the securities of the company itself or the parent, subsidiary, sister or affiliate company of that company if any of these companies is listed on the financial market.
It is noteworthy that the process of prohibiting insiders ’trading begins 10 working days before the announcement of any essential information that would affect the stock price up or down unless the information was caused by emergency events.
The ban also includes insiders trading 15 days before the end of the quarterly, semi-annual or annual financial period and until the financial statements are disclosed, in accordance with the system in force by the Securities and Commodities Authority.
A ban on insiders ’trading begins 10 working days before the announcement of any information that may affect the share price.