Given that National Investments Company’s goal is to preserve the interests of its valued clients, we are keen on spreading and promoting legal awareness for issues related to regulatory bodies, specifically Article # 122 from the law # 7 of 2010 regarding the establishment of the Capital Markets Authority and Regulating Securities Activities and its Amendments.
Hence, the company invites every client to act always as a prudent person, and take full care and attention to the following:
First: Clients ought to continuously follow up the diversified publications and announcements issued by the CMA, about mechanisms applied in the trading and the exchange of the financial securities.
Second: To be cautious and retrain from any action on financial securities in case the client notices any confusion or insecurity about anything related to those securities.
Third: the client must not pursue any misleading behavior and /or wrong practice that causes a violation to the Article # 122 of the law #7/2010, which states the following:
Punishment by imprisonment for a term of not more than five years and a fine of not less than Ten Thousand Dinars and not more than One Hundred Thousand Dinars, or by either of these two penalties, shall be incurred by any Person who is proved to have intentionally committed one of the following acts:
1. Behaved in a way that creates a false impression or misleading people concerning the actual trading in a Security or a Security Exchange through:
a. Entering into a deal in a manner that is not conducive to real change in the Security’s ownership;
b. Entering a purchase or sale order for a Security with the knowledge that a similar order in terms of size, price, time of sale or purchase for the same Security, has been or will be issued by the same Person or by Persons who act in agreement with that Person.
2. Whoever concludes one or more deals concerning a Security, that would lead to:
a. An increase in the price of the Security for the purpose of encouraging others to purchase it.
b. A reduction in the price of the Security for the purpose of encouraging others to sell it.
c. Creating actual or fictitious trading for the purpose of encouraging others to purchase or sell.
The Authority shall set the rules explaining the instances included in Clause (1/a) and Clause (2/c). Such rules shall specify practices to be exempted from the implementation of the provision of this Article.