Dubai: The insider trading at public shareholding companies listed in the UAE capital markets will take effect on Monday, in compliance with the applicable regulations and rules.
The Abu Dhabi and Dubai Financial Markets called on listed shareholding companies and brokerage companies to implement the ban until the announcement of the financial statements for 2018’s fourth quarter, due to start in early January 2019.
The move comes in line with to the provisions of Article 14 of the system, of trading, clearing, settlement and transfer of ownership and custody of securities.
According to Article 14, it shall not be permitted for a chairman, members of the board of directors of a company, any of the employees who has access to insider information to trade — whether by themselves or through others — in the securities of the same company or its parent company, subsidiary, affiliate or allied company if any of those companies were listed on the market, during a period of 15 days before disclosing the financial statements of the company and until they are disclosed.
Also, the ban is made 10 working days before the announcement of any material information that will affect the share price up or down, unless the information is the result of sudden and urgent events.