Market manipulation in Kuwait stock exchange : an analysis of the regulation of market manipulation prior and under Law no. 7 of 2010

摘要

There are many practises that affect and harm the integrity of financial markets. These\udacts fall under the general title of ”Market Abuse”. This title can be divided into two\udmain forms, insider dealing and market manipulation. This research primarily aimed at\udexploring the regulation of market manipulation in Kuwaiti law. Market manipulation\udpractises came under regulation for the first time via Law No. 7 in 2010. Therefore, it is\udessential to differentiate between the periods; before and after the issuance of this law.\udHence, there are four main objectives to this study: 1) define market manipulation and\udits common forms, 2) explore the applicability of criminal and civil Kuwaiti law to\udmarket manipulation practises prior Law No. 7, 3) critically evaluate how well this law\udcovers the forms of market manipulation identified and 4) evaluate how effective the\udlaw is through its enforcement and implementation.\udTo achieve these objectives, different methods have been followed. Overall, this\udresearch follows a critical analysis approach. In addition, the extant literature has been\udexplored. The evaluation of Law No. 7 has been conducted using the more established\udregulatory law, the FSMA 2000, was taken as a basis for the analysis and evaluation.\udIt has been found that prior to Law No. 7 of 2010, regulation of market manipulation\udpractises was almost non-existent. Law No. 7 of 2010 does largely cover most forms of\udmarket manipulation, excluding stabilizing the security price and information based on\udmanipulation of forms. Civil penalties, as compared with those in the UK, tend to be\udlenient, which may prove problematic in deterring manipulative practises. Judges in\udgeneral also lack the experience and confidence to apply and enforce sanctions\udregarding manipulative practises yet it must be noted that the law has not been in action\udfor very long. Thus, it is recommended that the fourth objective of the study be repeated\udafter the law has been in place for several years to reassess its success in combating\udmanipulative practises.