الهيئة العامة للرقابة المالية

• Listed companies must notify their customers and the Exchange of upcoming blackout periods in advance through secure electronic channels.
• Membership in the Investor Protection Fund is now mandatory for all listed companies.
• Listed companies have a three-month grace period to comply with the new rules

FRA has introduced new rules to regulate insider trading by individuals with access to non-public information, such as board members and executives of listed companies so as to enhance transparency and fairness within the market.  It is worth mentioning that amendments to Article 38 of Listing Rules, prohibits insider trading including board members, executives of listed companies , those who have access to information that is not available to others regardless their ownership percentage as well as major shareholders (owning 20% or more of company’s capital) . Insider trading is prohibited for five working days before and one day after the public disclosure of material and significant information, as outlined in the Capital Market Law’s executive regulations.

According to the new regulations, listed companies must establish clear procedures and internal systems for identifying blackout period.  In addition, companies must notify all relevant parties of the blackout period, these notifications must be sent via secure, verifiable, and authenticated electronic channels, such as company-generated emails. A copy of each notification should be simultaneously submitted to the Stock Exchange.

Companies must inform the Exchange about their notification procedures, including proof of a secure notification system. The Stock Exchange must publish the data on transactions that comply with this article after each trading session, based on the latest information provided by companies.

Also, the new rules stipulate that certain types of transactions, including forced sales, collateral liquidations, and those carried out by institutional investors are exempt from blackout periods.

Moreover, the rules oblige listed companies to become members of the Investor Protection Fund. Company representatives are required to join the Fund immediately and throughout the listing period and all associated fees must be paid on time.

According to the new rules, listed companies have a three-month grace period to comply with insider trading regulations and join the Investor Protection Fund.