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| Securities and Exchange Commission Chairman Osborne Nurse said the existing Securities Industry Act implies that certain kinds of insider trading are acceptable and the legislation therefore needed to be updated. (File photo) | |
PORT OF SPAIN, Trinidad, May 15, 2008 - The Trinidad and Tobago government is going after insider traders on the local stock market with legislation that could force them to pay as much as TT$2 million (US$321,151) for their crimes.
The Patrick Manning administration will take to Parliament an amended Securities Industry Act 2008 to impose the heavy penalties of those found guilty of breaching securities laws and engaging in insider trading - the buying, selling or participating in trading in securities with knowledge of price sensitive information before that information is released to the general public.
The legislation will target directors, associates, spouses, relatives and those who own more than ten per cent of company stock and who trade in shares with illegal inside knowledge of a firm's operations.
It is proposed that corporate traders who are found guilty of this offence on summary conviction be punished with "a minimum fine equal to the profit made or loss avoided by him" and a maximum fine equal to the greater of double the profit made or the loss avoided by him and TT$1 million (US$160,575) and a term of imprisonment up to six months.
For a person convicted on indictment, the maximum fine would be increased to equal the greater of triple the profit made or loss avoided by him/her and TT$2 million (US$321,151), and the guilty person could spend as long as two years in prison.
Securities and Exchange Commission Chairman Osborne Nurse said the existing Securities Industry Act implies that certain kinds of insider trading are acceptable and the legislation therefore needed to be updated.
He said the amended law would ensure fairness and transparency in securities trading and improved surveillance and enforcement of the financial landscape.
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