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Cabinet approves draft decree to empower SEC in trading fraud probes

Cabinet approves draft decree to empower SEC in trading fraud probes

Provided by Nation.

The Cabinet has approved a decree allowing the SEC to independently investigate and file charges for four types of stock trading violations.

The Cabinet on Thursday approved a draft executive decree to expand the authority of the Securities and Exchange Commission (SEC), allowing it to conduct investigations and file charges in court for four types of stock trading violations.

SEC to Conduct Investigations Without Police Involvement
A Government House source stated that the Cabinet had approved the draft decree to amend the Securities and Exchange Act, enabling the SEC to investigate four categories of trading offences without having to wait for police to conduct probes, as is currently required.Additionally, if public prosecutors refuse to file charges against suspects in these cases or if the statute of limitations is approaching, the amendment would grant the SEC the power to bypass public prosecutors and take the cases directly to court.

Four Types of Trading Offences Covered

According to the source, the four stock trading violations that the SEC would be authorised to investigate independently are:


Market misconduct
Insider trading
Market manipulation
False disclosures


The proposed amendment aims to enhance regulatory enforcement and improve efficiency in tackling stock market fraud.

NATION

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AFP-JIJI PRESS NEWS JOURNAL


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