Jordan Securities Commission Warns against Acts Creating False Impressions of the Price of any Security
31-Jul-2013
Jordan Securities Commission (JSC) noticed lately while monitoring the trading of listed companies on the Amman Stock Exchange (ASE), that many Financial Brokerage Companies (FBCs) execute orders on behalf of their clients affecting the prices of securities & violating the Securities Law & Instructions issued pursuant thereto stipulating the following:
“It shall be prohibited for any person to solely or in collusion with others, to effect any transaction in securities with the intention of creating a false impression of the price or volume of trades of a security or any related security”.
The Directives for Internet Trading in Securities on the (ASE) obliged (FBCs) to inform the (ASE) & the (JSC) in writing & promptly of such transactions conducted by registered clients.
Furthermore, the Commission issued a circular to Financial Services Companies (FSCs) & their clients obliging them to comply with the Securities Law & Instructions issued pursuant thereto to avoid taking any legal measures against violators, enhancing thus the Commissions’ duties & achieving its goals of regulating the national capital market, educating & protecting investors.
Recently, the Commission’s Board of Commissioners accredited Guidelines for Principles to take measures against violators of (FSCs) & clients affecting the prices of securities. These Guidelines included imposing monetary fines on violators whether dealers or brokerage companies as well as doubling these fines in case of repetition & registering violations in the Commission’s Professional Record of every brokerage company violation. Moreover, the Board is authorized by the Law to refer such violations to the Competent Court.
The Commission shall observe transactions affecting the prices of securities & any Law violations as well as send notices for hearings to clients executing on their behalf such transactions & send notices to (FBCs) verifying these acts, in order to take proper measures. The Commission has also imposed monetary fines on certain clients & (FBCs) verified to have committed such violations.