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Dr AbdelGadir Warsama Ghalib a corporate legal counsel stated in Gulf Times that the stock market laws prohibit insider trading and based on this disclosure or use of insider information is punishable by law. He noted that such actions by top management or those with ex-officio access to information are legally commercially and ethically unacceptable under any circumstances. Unauthorised disclosure of classified information unless allowed by law opens the door for civil litigation in addition to criminal proceedings against violators according to the column.
Ghalib described insider trading as an illegal act worldwide with a great deal of legal literature and continuous litigation in this respect. He recalled a recent American case in which the CEO of an investment bank was charged in a US federal court with conspiracy and insider trading for allegedly passing confidential information about pending banking mergers to a lady. The official had learned of the mergers because his bank was involved in the process yet he broke secrecy rules for personal interest thereby exposing himself to legal action the counsel reported.
The lady who received the information was also charged after she bought shares in the target companies just before the merger announcements allowing her and an accomplice to make illegal profits that would not have been possible without the tipped details. Ghalib added that the lady further tipped off another man who similarly profited at the expense of other potential buyers. This chain reaction illustrates how insider information can spread rapidly once disclosed making laws even tougher on those who breach confidentiality he explained.
In a separate case outlined by Ghalib a company chairman disclosed details about an upcoming initial public offering expected to generate significant funds for the firm. The company responded by cancelling the IPO and pursuing court action against the chairman. Such examples demonstrate how insider trading and related disclosures can harm business operations and company internal affairs while undermining overall market trust the legal expert wrote.
The Qatar Financial Markets Authority code of market conduct prohibits insiders from disclosing inside information that is due to be published and will impact prices according to the regulator’s published rules. A critical study published in the Qatar University International Review of Law identified certain loopholes in Qatar’s insider trading prohibition when compared with stricter US frameworks. Maximum fines for serious market violations can reach QAR 10 million under applicable Qatari provisions a legal review by Charles Russell Speechlys found.
SEC enforcement results for fiscal year 2025 show the US regulator filed 31 insider trading cases as part of 456 total enforcement actions that yielded monetary relief of $17.9 billion according to commission figures. These actions targeted a range of misconduct including schemes that spanned multiple transactions and involved sophisticated concealment methods. Ghalib concluded that all stock markets must issue tough rules to criminalise insider trading activities in order to develop healthy markets and protect potential investors.
