Instructions to Trade in Securities by Jordan Securities Commission’s Employees on April 29.2013
07-May-2013
On April 29.2013 Jordan Securities Commission (JSC) Board of Commissioners chaired by HE Mr Mohammed Saleh Hourani decided to approve the “Instructions to Trade in Securities by Jordan Securities Commission’s Employees”, whether in their own names or in the names of their wives & minors. The aim of the decision is to achieve integrity & transparency in the Public Sector & for those working in it.
The “Instructions” stresses that an employee shall declare in writing of securities he owns, including his wife & minors. An employee is prohibited from borrowing from Brokerage Companies by any means to trade in shares & is prohibited from mediating in the purchasing & selling of securities or using any information he possesses by ex officio, subject to legal liability. The “Instructions” shall be applicable to the Chairman & members of the Board of Commissioners, as well as the other specifications & standards stipulated in the Securities Law. Furthermore, the “Instructions” stipulate setting standards on this dealing that are indicated below:
A. Within a period of (30) days upon assuming his duties or the date of enforcing these “Instructions”, an employee shall declare in writing to the competent authority, securities at his disposal & any shares or stocks in any Financial Services Company owned thereby or at his disposal. The employee shall also declare in writing any changes to the aforementioned within three days of the employee’s knowledge thereof.
B. The employee shall declare on the accredited “Form” by the competent authority & deliver it in a sealed envelope to the Board’s Secretariat to be submitted sealed to the Board of Commissioners.
C. The employee is prohibited from owning stocks in any Financial Service Company & if so, he shall inform the competent authority within three working days & shall also dispose them within three months.
D. The employee is prohibited from purchasing securities issued by Public Shareholding Financial Services Companies.
E. The employee is prohibited from purchasing unlisted securities or suspended from trading or delisted or untraded executing processes via the Securities Depository Center (SDC).
The employee shall deal in securities on Cash Basis & he is prohibited from:
A. Dealing in Margin Finance.
B. Lending money from banks to finance processes of purchasing securities.
C. Mortgaging securities to finance processes of purchasing securities.
The employee is prohibited from mediating in the purchasing & selling of certain securities or promoting or giving opinion & advice to others on the performance of Financial Services Companies & Registered Persons or to any party related to trading in securities.
The employee is prohibited from the following:
A. Purchasing & selling securities based on information he possesses by ex officio.
B. Using any information he possesses by ex officio directly or indirectly to attain material or moral gains.