Securities Industry Act - The Bahamas Laws On-Line - The ...

SECURITIES INDUSTRY [CH.363 – 47
equals or is better than the bid made by the broker-dealer
the competing bid shall be preferred to that made by the
broker-dealer.
(3) For the purposes of this section, trading as a
principal includes trading on behalf of a corporation in
which the broker-dealer or its directors have a controlling
interest.
(4) Where a broker-dealer purchases listed securities
as a principal, it shall record such securities in a book of
accounts separate from the book of accounts relating to
securities held as an agent.
69. (1) A person who directly or indirectly for the
purpose of creating a false market in any security —
(a) effects any transaction in such security which
involves no change in the beneficial ownership
thereof; or
(b) enters an order or orders for the purchase of a
security with the knowledge that an order or
orders of substantially the same size, at substantially
the same time and at substantially the same
price, has or have been or will be entered by or
for the same or different parties for the sale of
that security,
is guilty of an offence.
(2) For the purposes of this section, a “false market”
is a market in which the movement in the price of a
security is brought about or sought to be brought about by
factors calculated to create a movement of the price of a
security not justified by the assets, earnings or prospectus
related to that security.
70. A person who directly or indirectly effects a
series of transactions in any security in the securities market
creating actual or apparent active trading in such security
for the purpose of inducing the purchase or sale of such
security by others is guilty of an offence.
71. A broker-dealer, a trader or any other person
who is selling or offering for sale or purchasing or offering
to purchase, any security whether in consideration or
anticipation of a reward or benefit or otherwise and who
induces a purchase or sale of such security on a securities
market by the circulation of information to the effect that
Prohibition of
false markets.
Market rigging
transactions.
Inducement to
purchase or sell
securities by
circulation of
information.
[Original Service 2001]
STATUTE LAW OF THE BAHAMAS