Capital Market Authority supports companies, market participants to prevent insider trading crime

The Capital Market Authority (CMA) issued an awareness booklet to explain trading based on inside information (insider trading), which is a prohibited activity in accordance with Article 50 of the Capital Market Law as well as the regulations and rules issued by CMA, specifically Market Conduct Regulations.
The booklet comes as a part of endorsing continuous awareness efforts about illegal practices to the Capital Market Law and its Implementing Regulations, especially practices related to insider trading in the Saudi Capital Market.
It is in line with the CMA's efforts to develop the Saudi Capital Market and protecting market and investors from unfair and unsound practices along with seeking to achieve fairness, efficiency and transparency in securities transactions.
Article 50 of the Capital Market Law states, "Any person who obtains, through family, business or contractual relationship, inside information (insider) is prohibited from directly or indirectly trading in the security related to such information, or to disclose such information to another person with the expectation that such persons will trade in such securities." 
Insider information, as defined by the Capital Market Law, means information obtained by the insider, which is not available to the general public, has not been disclosed, and such information is of the type that a normal person would realize that in view of the nature and content of this information.
its release and availability would have a material effect on the price or value of a security related to such information, and the insider knows that such information is not generally available and that, if it were available, it would have a material effect on the price or value of such a security.
The above article also states, "No person may purchase or sell a security based on information obtained from an insider."

Source: Arab News