The Basics of Civil Liability of Insider Trading in Capital Market
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

The Basics of Civil Liability of Insider Trading in Capital Market

Document Type : Original Article

Author
Mohammad Sadegh Shabani
Assistant Professor, Department of Private Law, North Tehran Branch, Islamic Azad University, Tehran, Iran.
10.22034/jse.2024.11007.1270
Abstract
Regardless of the criminal liability of insider trading’s perpetrator, which has been brought to the attention of the legislator in Clause 2 of the Article 46, the Securities Market Law, the discussion of validity and civil effects of such a transaction with the aim of eliminating or compensating the other party’s damage of the transaction is one of the major issues can be raised in this context, and if this type of securities transaction is considered valid, the civil liability of the factors involved in the realization of the transaction is one of the most important issues that can be raised regarding the said transaction. A subject that, despite its importance and unique features, lacks specific regulations in the existing laws. For this reason, it is necessary to answer the questions raised in this field by resorting to legal generalities and legal principles. In the meantime, taking into account the specific requirements of the capital market is effective in realizing the elements of the civil liability of the trader by using Inside information, and it requires that the examples, customs and special characteristics of the capital market be taken into account in applying the titles. A matter that in some cases interprets the concept of "Damage", " Negligence " and "causality" somewhat differently and it is necessary to identify the factor or factors responsible for compensating the damage and the contribution of each one in this field.
Keywords
Insider Trading
Civil Liability
Capital Market
Damage
Negligence
Subjects
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Quarterly Journal of Securities Exchange
Volume 17, Issue 67
Autumn 2024
Pages 1-24