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Missions of Monitoring and Disclosure
Department:
he
main missions include protect the investors, and encourage
establishing competent and regulated stock market governed by
integrated legislation which aims to:
1.
Protect investors from non-commercial
risks.
2.
Organize and develop the market, and
maintain its integrity.
3.
Apply the principles of justice,
transparency and corporate governance rules.
The
management has also the following missions:
-
Control the issuing companies:
Control the disclosure of issuing companies of securities, and
provide the necessary funding for them as well as receive and
inspect the prospectus, purchase offers, notes of private
subscription for securities including fund documents, in addition to
monitoring the disclose of issuing companies for periodic un
periodic disclosure and study the purchase offers, merger,
acquisition and disclosure orders and applying the principles of
corporate governance of listed companies.
-
Monitoring related parties of the
market ( market regulation) :
Review
the rules of trading and listing the securities of companies, settle
transactions of stock market, follow-up their liabilities through
periodic reports and field inspection to inspect the books, files
and records and also monitoring the workers of these companies, the
award of licenses to workers of companies operating in securities,
in addition inspection of these companies of all specializations and
activities.
-
Ensure applying the regulations and
rules of the market(market surveillance& enforcement):
Control of the market's trading operations and to investigate the
disobediences which identified through disclosure control, trading
control and inspection of dealing and listing companies and the
statute of these companies should stated to apply corporate
governance principles which the rules of the market stated and to
consider the complaints and grievances of the public ( investors) .
The management concerns to be obligated with the rules and
regulations governing the operation of the market.
Dealing on insider's information
Dealing on insider's information destroys investor's confidence in
the integrity of the market. For this, the disclosure and corporate
governance rules have treated the insider transaction.
Insider's information:
Usually insider's information is defined as information not
available to the public.
And
insiders:
Company employees who are allowed to access the information before
publication.
In
order to ban the dealings of insider on insider's information,
disclosure rules obligated the listed companies to disclosure about
information which may have a significant impact on the prices of
paper or by trading. It has revealed that:
Every
company faces emergent essential events which are not available to
public shareholders and affected to its activity of its financial
position or to trading of its share, is obligated to disclose
immediately.
Every companies of the market are also
committed to undertaking market
disclosure of any material information, and the names based on this
Information
As
the disclosure rule indicated:
Definition: essential events
Examples of essential events such as:
-
change of modification any of the company's data about its
registration in the market.
-
Management board meeting records.
-And
important decisions affecting the status of the company and its
stock trading.
-
Lawsuits bring against the company.
-
Insiders
To ensure the accuracy of information provided by the management board,
the company and the board have the responsibility of taken
procedures at publishing the essential information such as:
-
Publish the information immediately
with the coordination with the market.
-
The information must publish
immediately during the trading.
-
Informing of insiders dealing by the
companies' name.
The
Disclosure in the Negotiation Phase:
-
Inform the market with names of those
who have information about the negotiation.
-
Inform the market with any leakage of
information.
-
Non-treated insiders and their
families take procedures to prevent the leakage of information.
Procedures to Prevent the Leakage of Information:
-
Forbid the dealing of companies'
shares to insider.
-
The company is committed to respond
to the disclosure request made by the market.
-
In the case of the company does not
cooperate and disclosure.
-
The company must notify to disclose,
if the company does not respond, there are some disciplinary
procedures.
The
Role of Brokerage Companies in Combat the Money Laundering
Law No
(2) for the year of 2005 regarding with combat the money laundering
in its second article ,paragraph ( c) have shown that copartner in
money laundering crime by any form of contribution is considered as
a guilty of the money laundering crime.
As
shown article (5) of penalties crimes related to money laundering,
the paragraph includes:
First:
the law shown the punishment each official or economical institution
aware of a conduct in his institution related to money laundering
crime and does not inform about it to the competent party as
indicated in the paragraph:
Second: punishment of the person who informs any one that his
transactions are under review or under investigation by the
competent party on suspicion of lack of legitimacy.
The
fifth paragraph had shown the punishment of any decree of his law
and its executive order or any decision or publications issued in
accordance with it.
The
Financial Information Unit and the National Anti-Money Laundering
Committee
Financial information unit in central bank of Libya and the national anti-money
laundering committee were established by this law. The decree No
(300) for the year 2007 regarding to issuing its executive order for
the law No (2) for the year (2005) have indicated the missions and
functions of financial information unit and the national anti- money
laundering committee.
In
order to protect the brokerage companies from falling under the law
against money-laundering .the regulation of market brokerage
companies urged to follow the principle of " Know your client and
trying to know the sources of funds and to be dealt with the
investor in accordance with instruments and reduce cash transactions
as possible (transactions must be conducted with amounts large
instrument)
The
Effectives of Money Laundering On the Stock Market:
It is
no secret to anyone the effectives of money- laundering operations
in that between 40% and 60% of the illegal funds are being recycled
and used, and therefore any investor to deal with such funds will
not have any reason in his investment Decisions, since the goal of
any investor is either profits for the immediate or capital gains,
but money-laundering Operations aimed at legitimizing the funds and
therefore will not be interested investor to profit and this will
lead to the Collapse of prices and destabilization of the market.
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