| .. CHAPTER XI
FRAUD,
MARKET MANIPULATION AND INSIDER TRADING
Article
90
When buying and selling
Securities, every Person is prohibited from directly
or indirectly:
- defrauding or
deceiving another Person, by any means or method;
- participating in a
fraud or deception against another Person; and
- falsely stating
Material Information or failing to disclose
Material Information so that statements are
misleading with respect to conditions at the time,
either with the intent to obtain a benefit or to
avoid a loss, either for himself or for another
Person, or with the intent of influencing another
Person to buy or sell Securities.
Article
91
Every Person is prohibited
from, directly or indirectly, taking any action that
has the purpose of creating a false or misleading
appearance of trading activity, market conditions or
the price of Securities on a Securities Exchange
Article 92
Every Person, either alone
or with others, with intent to influence others to
buy, sell or hold Securities, is prohibited from
making two or more Securities Transactions, that
directly or indirectly cause the price of Securities
on the Securities Exchange to rise, fall, or remain
steady.
Article 93
All Persons are prohibited
from making, by any means, a statement and giving
Material Information that is false or misleading and
that affects the price of Securities on a Securities
Exchange, if at the time of making such statement or
giving such information:
- the Person knows or
should have known that such Material Information
was false or misleading; or
- the Person has
failed to exercise due care in determining the
truth of such statement or information.
Article
94
BAPEPAM may determine that
certain activities of Securities Companies, are not
prohibited by Articles 91 and 92.
Article
95
An insider with respect
to an Issuer or Public Company, who is in possession
of inside information, is prohibited from buying or
selling Securities of:
- the Issuer or Public
Company; or
- another Company
engaged in transactions with the Issuer or Public
Company.
Article
96
The insider referred to in
Article 95 is prohibited from:
- influencing a Person
to buy or sell the Securities in question; or
- providing inside
information to a Person he has reason to believe
may use such information to buy or sell the
Securities in question.
Article
97
- A Person that tries
to obtain inside information from an insider in
violation of the law and who obtains such
information, is subject to the same prohibitions
as the insiders mentioned in Articles 95 and 96.
- A Person who tries
to obtain inside information and who obtains it
without violating the law, is not subject to the
prohibitions applicable to insiders mentioned in Articles
95 and 96, as long as such information is made
available without restriction by the Issuer or
Public Company.
Article
98
A Securities Company
that has inside information concerning an Issuer or a
Public Company is prohibited from engaging in
Securities transactions of such Issuer or Public
Company, unless:
- the transaction is
made for the account of and in accordance with
instructions of a client; and
- the Securities
Company makes no recommendation to the client with
respect to such Securities.
Article
99
BAPEPAM may determine that
certain transactions are exempted from the
prohibitions of Articles 95 and 96.
© 1999 Bapepam, All Rights
Reserved.
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