Adopted new rules to prevent abuses in the securities market

The State Securities Committee (SSC) adopted December 14 the rules to prevent abuses in the securities market. The document came into force after the introduction in the state register of legal acts on 25 December.

The rules govern the storage, use, and disclosure of the provision of service information, disclosure of information held by insiders from trading in securities, as well as measures to prevent abuses in the securities market.

To insiders attributed members of the Supervisory Board and the executive body, the person controlling the activities of the issuer, the holders of more than 10% of the share capital, the person subject to the impact of these requirements in the past six months, etc. Each issuer writes its own list of insiders.

Issuers, whose securities are placed by mass supply, publish inside information on the corporate website (if available) and Internet resources of the Baku Stock Exchange (BSE). BSE post information immediately. In this case, issuers must have internal rules for handling overhead.

An insider in the transaction with the shares of the issuer provides information for one day to the SSC and the issuer. The issuer will publish this information on the same day it is received.

In identifying facts of manipulation in the securities market SSC suspends the deal or its performance. Brokers involved in these transactions may lose their license in court. - 08D-