Regulatory Alerts2013-01-01
Circular No. (2) for the Year 2013
The Authority prohibits directors, employees, and second-degree relatives of brokerage and portfolio management firms from trading on margin through their employing company, even if they hold prior regulatory approval under Article 236. Such personnel may only execute margin trades through a different brokerage firm after obtaining explicit regulatory consent and mutual board of directors' approval per Article 237. This circular enforces the statutory requirement that firms must verify compliance with these conditions before processing securities transactions for directors and employees of other regulated entities.
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