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12. Rights of the BMA on Non-Compliant Situations

12.1. Once the BMA receives a case, it shall launch an investigation as a capital market regulator. The Agency has the authority to obtain records and documentation, and the ability to obtain all information related to suspicious transactions, including but not limited to the beneficial owners of securities held in nominee names.
12.2. Without prejudice to any laws or regulations applicable in the Kingdom of Bahrain, the BMA reserves the following rights regarding a non-compliant person:
1. Call the Arbitration Board, formed in accordance with Article 13 of the BSE Law, for a meeting to decide on such non-compliant transactions.
2. If the Agency or the Arbitration board, as the case may be, comes to the finding that the transaction is non-compliant and that the person profited or avoided a loss through unlawful trading, the transaction is liable to be cancelled and the profit or loss (whether realized or not) would be recovered, in addition to bearing the costs, fees, and charges incurred from such persons.
3. According to Article 361 (h) of the Commercial Companies Law, such persons shall be subject to "imprisonment and a fine not less than BD5,000 and not exceeding BD10,000 or either of these two penalties".
12.3. Sanctions of Abuse of Inside Information
12.3.1 Abuse of inside information

Anyone who in order to gain material benefit for himself or for any other willfully or through gross negligence makes use of inside information relating to a share subject to public trade by:
1) disposing of or acquiring the share on his own behalf or on behalf of another, or
2) directly or indirectly advising another party in a transaction relating to the share;
shall be sentenced for abuse of inside information as stated above in 12.2.3.
12.3.2. Gross Abuse of inside information

All attempts of the willful abuse of inside information shall be punishable if:
a) The purpose is to acquire exceptional profit or considerable personal gain;
b) the offender, when committing the offence, makes use of his highly responsible position or direct access to the inside information as an employee or representative of the Agency, the Exchange, the Clearing, Settlement and Central Depository or Registry facilities, a clearing house, a brokerage firm, or if
c) the offence is committed with exceptional deliberateness and if the abuse of inside information is also deemed gross when assessed as a whole, the offender shall be sentenced for gross abuse of inside information to the penalty stated in Article 361 of the Commercial Companies Law and other penalties stated in the other related applicable laws, as the case may be.
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