2013ALshuraianFPhD.pdf (9.12 MB)
Market manipulation in Kuwait stock exchange : an analysis of the regulation of market manipulation prior and under Law no. 7 of 2010
thesisposted on 2014-05-21, 13:11 authored by Fatemah Abdulla Al Shuraian
There are many practises that affect and harm the integrity of financial markets. These acts fall under the general title of ”Market Abuse”. This title can be divided into two main forms, insider dealing and market manipulation. This research primarily aimed at exploring the regulation of market manipulation in Kuwaiti law. Market manipulation practises came under regulation for the first time via Law No. 7 in 2010. Therefore, it is essential to differentiate between the periods; before and after the issuance of this law. Hence, there are four main objectives to this study: 1) define market manipulation and its common forms, 2) explore the applicability of criminal and civil Kuwaiti law to market manipulation practises prior Law No. 7, 3) critically evaluate how well this law covers the forms of market manipulation identified and 4) evaluate how effective the law is through its enforcement and implementation. To achieve these objectives, different methods have been followed. Overall, this research follows a critical analysis approach. In addition, the extant literature has been explored. The evaluation of Law No. 7 has been conducted using the more established regulatory law, the FSMA 2000, was taken as a basis for the analysis and evaluation. It has been found that prior to Law No. 7 of 2010, regulation of market manipulation practises was almost non-existent. Law No. 7 of 2010 does largely cover most forms of market manipulation, excluding stabilizing the security price and information based on manipulation of forms. Civil penalties, as compared with those in the UK, tend to be lenient, which may prove problematic in deterring manipulative practises. Judges in general also lack the experience and confidence to apply and enforce sanctions regarding manipulative practises yet it must be noted that the law has not been in action for very long. Thus, it is recommended that the fourth objective of the study be repeated after the law has been in place for several years to reassess its success in combating manipulative practises.
Date of award2014-05-01
Author affiliationSchool of Law
Awarding institutionUniversity of Leicester