The authority’s regulations criminalize practices affecting prices
"The Securities": 6 measures to counter the rumors in the money markets
"Securities" is studying investor reports regarding any market rumors. Photography: Patrick Castillo
The Securities and Commodities Authority has set six basic controls and procedures to address rumors in the money market, and to ensure that trades are not affected by them.
In a recent awareness leaflet, of which Emirates Today obtained a copy, it stated that the Authority’s regulations and law criminalize practices that affect prices, such as rumors and news that affect the performance of markets.
She stressed that the leakage of internal information and the repetition of rumors in the stock market contradict the concepts of fairness, transparency and the authority, through their role in promoting the concepts of transparency, justice and investor protection, pointing out that the best evidence for this is the texts and legislation that came in the Authority’s regulations, to limit the publication of Rumors, information leakage and fighting them, which include:
Meeting dates
1. The necessity to disclose in advance to the Authority and the Markets about the dates and timing of the company's board of directors' meetings in which this board will discuss decisions that have an impact on the price and movement of the share in the stock market, such as: cash dividends, bonus shares, increasing or decreasing the company's capital, and splitting the nominal value of the share, The company's purchase of its shares, at least two business days before the date of the meeting.
Decisions made
2. Providing 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 day following the meeting is a business day or an official holiday. If the time of the meeting coincides with the trading hours, trading in the company's shares shall be suspended until the market is informed of the results of the meeting.
Penalties and fines
3. In accordance with the provisions of Federal Law No. (4) of 2000 in the matter of the Emirates Securities and Commodities Authority and Market, a penalty of imprisonment for a period of not less than three months and not exceeding three years, and a fine of not less than 100 thousand dirhams and not more than one million dirhams, or one These two penalties are for anyone who provides any data, or makes incorrect statements or information that may affect the market value of securities, and the investor’s decision to invest or not, or who deals in securities based on undisclosed or undisclosed information, knows about it accordingly. His position, or spread malicious rumors about the sale or purchase of shares, or exploits unpublicized information that could affect the prices of securities to achieve personal benefits. Any conduct or deal based on the foregoing shall be null and void.
Follow up the rumors
4. Follow up of the authority’s competent departments, in cooperation with the markets, of any rumors in the market, and take the necessary measures in accordance with the provisions of the law and regulations that criminalize such practices to prevent influencing prices.
Control systems
5. The authority uses the latest international methods to confront these practices by using the latest trading control systems, as the competent departments in the authority follow up the news published in the various media outlets and social media to monitor rumors.
Investor notices
6. Study investor reports about any rumors in the markets, so that the Authority communicates with the listed markets and companies, to take legal measures in accordance with the Authority’s law and the regulations issued pursuant to it, to ensure transparency and disclosure in the markets.
- leaking internal information and repeat rumors contradict the concepts of transparency and justice.