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Chapter XI
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| FRAUD, MARKET
MANIPULATION AND INSIDER TRADING |
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| Article 90 |
| When
buying and selling Securities, every
Person is prohibited from directly or
indirectly: |
| a. |
defrauding or
deceiving another Person, by any means or
method; |
| b. |
participating in a
fraud or deception against another
Person; and |
| c. |
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.
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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: |
| a. |
the Person knows or
should have known that such Material
Information was false or misleading; or |
| b. |
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: |
| a. |
the Issuer or
Public Company; or |
| b. |
another Company
engaged in transactions with the Issuer
or Public Company. |
Article 96 |
| The
insider referred to in Article 95
is prohibited from: |
| a. |
influencing a
Person to buy or sell the Securities in
question; or |
| b. |
providing inside
information to a Person he has reason to
believe may use such information to buy
or sell the Securities in question. |
| (1) |
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. |
| (2) |
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: |
| a. |
the transaction is
made for the account of and in accordance
with instructions of a client; and |
| b. |
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. |
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