Chapter 8
Unfair Securities Trading Practices and the Acquisition of Securities for Business Take-Overs
 
Division 1
Prevention of Unfair Securities Trading Practices
 
*
Section 238.
 
 
No securities company or any person responsible for the operation of a securities company or company which issues securities or any person having an interest in the securities shall impart any false statement or any other statement with the intention to mislead any person concerning the facts relating to the financial condition, the business operation or the trading prices of securities of a company or juristic person whose securities are listed in the Securities Exchange or are traded in an over-the-counter centre.
 
*
Section 239.
 
 
No securities company or any person responsible for the operation of a securities company or company which issues securities or any person having an interest in any securities shall disseminate news concerning any information which may cause any other person to understand that the prices of any securities will increase or decrease, except where the dissemination of information has already been reported to the Securities Exchange.
 
*
Section 240.
 
 
No person shall disseminate any false news to be removed which may cause any other person to understand that the price of any securities will increase or decrease.
 
*
Section 241.
 
 
In the purchase or sale of securities which are listed in the Securities Exchange or traded in an over-the-counter centre, no person, whether directly or indirectly, shall purchase or sell, offer to purchase or sell or invite any other person to purchase, sell or offer to purchase or sell securities which are listed in the Securities Exchange or traded in an over-the-counter centre in such a way as to take advantage of other persons by using information material to changes in the prices of securities which has not yet been disclosed to the public and to which information he has access by virtue of his office or position, and whether or not such act is done for his own or another person's benefit, or to disclose such information so that he will receive consideration from the person who engages in the aforesaid acts.

For the purposes of this Section, the person under the first paragraph shall include:
(1) director, manager, person responsible for the operation or auditor of a company whose securities are listed in the Securities Exchange or traded in an over-the-counter centre;
(2) securities holder of a company whose securities are listed in the Securities Exchange or traded in an over-the-counter centre, who holds securities the par value of which exceeds five percent of the registered capital. For the purpose of calculating the value of such securities held by such person, the securities held by his spouse and minor children shall be counted as his securities;
(3) state agency personnel, or director, manager, or officer of the Securities Exchange or of an over-the-counter centre who is in an office or position with access to information which is material to changes in the price of securities;
(4) any person involved in securities and/or the trading of securities in the Securities Exchange or in an over-the-counter centre;
 
*
Section 242.
 
 
In order that the person referred to in the second paragraph of Section 241 shall not receive any benefit from the contravention of the first paragraph of Section 241, the Office shall have the right to call on such person to deliver the benefit which he has gained from such trading of securities or from the disclosure of information within a six month period from the date on which he gained access to such information. In this regard, such person shall deliver the benefit as claimed by the Office within the time specified by the Office.

The benefit claimable under the first paragraph shall be vested in the Office.
 
*
Section 243.
 
 
In the purchase or sale of securities which are listed in the Securities Exchange or traded in an over-the-counter centre:
(1) no person by colluding or agreeing with any other person shall purchase or sell securities in concealment in order to mislead the general public to believe that such securities are purchased or sold in great volume or the price of such securities has changed or has not changed at any time or during any period of time which is not consistent with the normal market conditions;
(2) no person, either by himself or jointly with any other person, shall continuously trade securities which results in the purchase or sale of such securities which is not consistent with the normal market conditions and such trading is made to lure the general public to purchase or sell such securities unless such trading is made in good faith to protect his rightful benefit.
 
*
Section 244.
 
 
The following cases shall also be deemed to be the concealment to mislead the general public in accordance with Section 243(1):
(1) the purchase or sale of securities where the persons who finally receives benefit from such purchase or sale is the same person;
(2) the order to purchase securities of the same category, type, and of the same juristic person, or mutual fund project, with the knowledge that he himself or jointly with any other person has ordered the sale or is going to order the sale, provided that the order shall be inproximate amount, price and time;
(3) the order to sell securities of the same category, type, and of the same juristic person or mutual fund project, with the knowledge that he himself or jointly with any other person has ordered the purchase or is going to order the purchase, provided that the order shall be in proximate amount, price and time.