ABU DHABI 18 June 2017: Insiders’ trading at the Abu Dhabi Securities Exchange (ADX), has been banned effective June 16th, until their companies disclose their Q2 financial statements, ADX announced Thursday.
ADX stated that the decision has been taken in accordance with the Article 14 of the Securities and Commodities Authorities’ Decision 1 for the year 2001 on the regulations of trading, clearing and settlement services, transfer of ownership and custody of securities, This came in a circular issued by Saif Sayah Al Mansouri, Head of Listed Companies Department, ADX on Thursday, and distributed to all public joint-stock companies, brokerage firms operating in the market and investors, said Wam.
On a related development, ADX has requested all listed companies to update their insiders’ data on an urgent and regular basis along with their website profiles.
According to SCA regulations, the chairman, board members or any senior executive in a company whose shares are listed on the market, shall not trade, by themselves or through others or on behalf of others, in shares without first disclosing to the market the purchase or sale transactions, and the number and price of shares.
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 prior to disclosing the financial statements of the Company and until they are disclosed.
By Angel Chan