Amendments to market conduct rules to protect investors from fraud: CMA official

Bader Balghonaim, deputy of legal affairs and enforcement at CMA

The amendments to market conduct regulations aim to enhance the protection of investors from unfair and improper practices, as well as fraud and manipulation, Bader Balghonaim, deputy of legal affairs and enforcement at the Capital Market Authority (CMA), told Argaam.

He added that the move also aims to improve the procedures for reducing the risks associated with securities transactions, as well as enhance investor confidence, in accordance with the best practices and international standards.

The amendments come as part of procedures taken by the CMA to achieve its Financial Leadership Program 2019-2021.

Commenting on the development of the stock market regulatory environment, Balghonaim indicated that the authority always seeks to enhance investor confidence in the market, as well as boost the bourse's stability and transparency.

On the other hand, Raed Al-Humaid, deputy assistant of market institutions at CMA, said the most prominent amendments to the market conduct regulations include clarifying the scope of acts and practices involving manipulation or deceit.

The market regulator also developed the provisions regulating the prohibition of acts or practices involving manipulation or fraud, by clarifying that the scope of such acts includes promoting the purchase or sale of a security.

The CMA also amended the provisions regulating the prohibition of insider trading and disclosure of inside information for the purpose of including front running trades.