Chapter 2 Chapter 2 Violation of Market Dealings
Article (106) The Offence of Market Manipulation
In the application of this law a person is guilty of market manipulation if he:1. is engaged, or encourages others to engage, in any conduct that may give a false or misleading impression as to the supply of or demand for, or the price or value of any securities.2. is engaged, or encourages others, to engage in any conduct that may give an unrealistic picture of the market regarding the volume and prices of any securities.
Article (107) Defences
A person shall not be guilty of market manipulation if he proves that his reasons for engaging in the alleged conduct were legitimate and that he had acted in conformity with the accepted market practices in the market concerned, or that he had acted in conformity with any price stabilization rules made by the Central Bank, or if he believed on reasonable grounds that his conduct did not violate Article 106 of this law and that he had taken all reasonable precautions and exercised all due diligence to avoid behaving in any way against the said Article.