A ban on insider trading at public shareholding companies listed in the UAE’s capital markets took effect on Sunday, March 17, according to a circular.
In the circular, both the Abu Dhabi and Dubai Financial Markets called on listed shareholding and brokerage companies to implement the ban until financial statements for the first quarter of 2019 are issued.
The move is in line with the provisions of the Securities and Commodities Authority resolution from 2001 concerning trading, clearing, settlement and transfer of ownership and custody of securities.
According to article 14 of the resolution, it is not permitted for a company’s chairmen, board members, director general of employees who have inside information to trade, either through themselves or through others, in the securities of the same company or any subsidiary, affiliate or allied company if any of those companies are listed on the market.
The ban lasts for a period of 15 days before the financial statements of the company are released.
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