The legal scope of prohibition of dealing in securities based on material information (A comparative study between the UAE and KSA Laws)

Abstract

This research addresses the topic of material information and its protection from exploitation in financial markets, as material information is a key element that affects the integrity and fairness of financial transactions. The research begins by stating the subjective and objective scope of the prohibition of exploitation of material information and shows the importance of this information and studies the impact of its exploitation on these companies in particular and markets in general. The aim of this research is to understand how material information can be protected, which helps companies and investors make informed decisions and enhances the integrity of financial markets. The research aims to provide recommendations to improve the legal protection of material information and enhance transparency in the financial markets.

 The research is divided into two main sections; the first deals with the subjective scope of insiders of material information, where primary and secondary insiders are defined, and the different categories of each are clarified. The second section addresses the subject matter scope defining the information that falls within the scope of prohibition and clarifying its characteristics, such as being confidential and piece sensitive.