Overview: This law established the Securities and Commodities Authority (SCA) in UAE. The first two exchange markets, the Abu Dhabi Securities Exchange and the Dubai Financial Market were founded in the same year.

Article 36. It shall not be permitted to disclose any untrue or incorrect information, declarations or statements which may affect the market value of the securities and the investors’ decisions whether or not to invest therein. 

Article 37. The undisclosed information which may affect the prices of securities may not be utilized to achieve personal benefits. Any act in violation thereof shall be null and void. 

Article 39. No person shall deal in securities under any undisclosed information which he learns about by virtue of his office. No person shall circulate any rumors regarding the sale or purchase of stocks nor shall the chairman, members of the board, or any officer in the companies take advantage of the company’s internal information in the sale or purchase of securities in the market. Any act undertaken by any person in violation of the provisions of the above paragraphs shall be null and void. 

Article 41. Any person violating the provisions of Articles 36, 37 & 39 hereof shall be punished by imprisonment for no less than three months and no more than three years plus the fine for no less than one hundred thousand and no more than one million Dirhams, or either penalty.