12-23-2009, 05:55 PM
Example is that you want to invest in securities . One person ,who is insider, says you that invest in the shares of Uniliver Pakistan or PSO and say that he has confirmed information that the company is preparing to declear interim dividend.
The expression âinside informationâ means, â
(a) information which has not been made public relating, directly or
indirectly, to listed securities or one or more issuers and which, if it were
made public, would be likely to have an effect on the prices of those listed
securities or on the price of related securities;
(b) in relation to derivatives on commodities or information which has not
been made public, relating, directly or indirectly, to one or more such
derivatives and which are traded in accordance with accepted market
practices on those markets; or
(c) in relation to persons responsible for the execution of orders concerning
listed securities, information which is conveyed by a client to such person
and related to the clientâs pending orders.
Insiders shall include, â
(a) sponsors, executive officers and directors of an issuer;
(b) sponsors, executive officers, directors and partners of a legal person or
unincorporated business association, in which the issuer holds shares or
voting rights, directly or indirectly, of twenty per cent or more;
(c) sponsors, executive officers, directors and partners of a legal person or
unincorporated business association who holds, directly or indirectly,
shares or voting rights of ten per cent or more in an issuer;
(d) sponsors, executive officers and directors of an organization, that has been
engaged in the placement of listed securities or the public offer of
securities or the issuing and marketing of such securities, who has had
access to insider information during his employment till a period of one
year after leaving employment;
(e) any natural person holding, directly or indirectly, ten per cent or more
shares of an issuer;
(f) sponsors, executive officers and directors of credit institutions in which
the issuer has an account;
(g) any person obtaining inside information as part of his employment or
when discharging his usual duties in an official capacity, or in any other
way relating to work performed under contract of employment or
otherwise;
(h) any person obtaining inside information through unlawful means; and
(i) a spouse, lineal ascendant or descendant, partner or nominee of a person
referred to in clauses (a) to (h).
The expression âinside informationâ means, â
(a) information which has not been made public relating, directly or
indirectly, to listed securities or one or more issuers and which, if it were
made public, would be likely to have an effect on the prices of those listed
securities or on the price of related securities;
(b) in relation to derivatives on commodities or information which has not
been made public, relating, directly or indirectly, to one or more such
derivatives and which are traded in accordance with accepted market
practices on those markets; or
(c) in relation to persons responsible for the execution of orders concerning
listed securities, information which is conveyed by a client to such person
and related to the clientâs pending orders.
Insiders shall include, â
(a) sponsors, executive officers and directors of an issuer;
(b) sponsors, executive officers, directors and partners of a legal person or
unincorporated business association, in which the issuer holds shares or
voting rights, directly or indirectly, of twenty per cent or more;
(c) sponsors, executive officers, directors and partners of a legal person or
unincorporated business association who holds, directly or indirectly,
shares or voting rights of ten per cent or more in an issuer;
(d) sponsors, executive officers and directors of an organization, that has been
engaged in the placement of listed securities or the public offer of
securities or the issuing and marketing of such securities, who has had
access to insider information during his employment till a period of one
year after leaving employment;
(e) any natural person holding, directly or indirectly, ten per cent or more
shares of an issuer;
(f) sponsors, executive officers and directors of credit institutions in which
the issuer has an account;
(g) any person obtaining inside information as part of his employment or
when discharging his usual duties in an official capacity, or in any other
way relating to work performed under contract of employment or
otherwise;
(h) any person obtaining inside information through unlawful means; and
(i) a spouse, lineal ascendant or descendant, partner or nominee of a person
referred to in clauses (a) to (h).
