hat an ordinary prudent person in a similar position would exercise under similar circumstances, and c) in a manner that they believe to be in the best interest of the company and its security holders;
VI. A Stock Exchange shall be the exclusive organizer of secondary public trading in securities;
VII. All purchases and sales of Publicly Held Securities shall be concluded through a licensed Brokerage Company;
A licensed Central Depository shall perform the following functions:
a) open, operate and close securities accounts of participants in accordance with its rules;
b) facilitate the settlement of securities transactions without physical delivery of securities certificates and, in furtherance thereof, provide facilities for comparison of data respecting the terms of settlement of securities transactions.
Licensed Stock Exchanges and a Licensed Central Depository shall be designated Self-Regulatory Organizations (SROs) under this law;
The main objective of such an organization, as an SRO, shall be to:
a) Pprepare rules for its members and supervise compliance with such rules;
Apply sanctions provided for in its inner regulations and rules or charter against members for non-compliance with its rules.
Insider means any person who, by virtue of his membership in the managing body of a reporting company, his holdings in the capital of such company, or based upon his access to such information by virtue of the exercise of his employment, profession or duties, possesses inside information. Other persons obtaining inside information that evidently originated with an insider shall be likewise considered insiders.
It shall be unlawful for any insider, and any person who knowingly receives inside information from an insider, to:
a) Acquire or dispose of, for his own account, or the account of a third party, either directly or indirectly, Publicly Held Securities of the reporting company or companies to which that inside information relates;
b) Disclose inside information to any third party unless such disclosure is made in the normal course of the exercise of his employment, profession or duties;
c) Recommend to or procure a third party, on the basis of inside information, to acquire or dispose of Publicly Held Securities.
Analysis - The Securities Market Law (SML) . The SML is drawn on German model and mostly reflects the international best practice in the field described in "The Objectives and Principles of Securities Regulation " adopted by the International Organization of Securities Commissions (IOSCO), but it has the following weaknesses: (i) It does not cover collective investment schemes (CIS), such as investment funds, and therefore there is currently no...
