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Securities law in Amman, in line with national norms across the Hashemite Kingdom of Jordan, is largely regulated and governed by the Jordan Securities Commission (JSC). The JSC, established by the Securities Law No.23 of 1997, oversees and regulates the country’s capital market, lay down dictates for financial disclosure, and floatation of securities. This includes shares, bonds, and other securities relating to publicly traded companies, regulated investment funds, and mutual funds. It is important for investors, companies, and financial advisers to appreciate these laws when dealing with securities in Amman.
Legal assistance may be required in a number of situations relating to securities. This could range from advice on investment decisions, regulatory compliance within the capital market, drafting of contracts, disputes revolving around securities fraud or insider trading, to matters related to corporate governance. Attorneys with expertise in securities law can help interpret and apply these complex laws and offer valuable counsel in the event of litigations or administrative proceedings.
Key local laws pertaining to securities in Amman echo the stipulations set out by the Jordan Securities Commission. Notable elements include mandatory transparency and full disclosure for publicly-traded securities, stringent regulation on insider trading, investor protection measures, and specific rules for dealer-broker conduct. It is also compulsory for institutions offering investment advice to be authorized by the JSC. Investment funds and securities brokerage firms also fall under the purview of specific legislation and regulatory controls.
A security, in the context of Jordanian law, is a broad term that can include shares, bonds, notes, investment contracts, and any rights in an investment program. The exact legal definition may vary according to specific situations.
Yes, under Jordanian law any publicly sold security needs to be registered with the Jordan Securities Commission. This registration ensures transparency and aids in reducing the risk of fraud.
Violations of securities laws in Amman, such as insider trading or securities fraud, can lead to severe penalties including financial fines and imprisonment. Legal proceedings can be carried out by the JSC or may be initiated by private parties who have suffered losses.
A securities lawyer primarily facilitates the creation, selling, and buying of securities. They aid in ensuring compliance with regulations, represent clients in case of litigation, and guide businesses through Initial Public Offerings (IPOs) and annual reporting requirements to the JSC.
Whilst it is not necessary to have a securities lawyer to invest, having one can be helpful due to the complex nature of laws and regulations in place. They can ensure compliance with the law and offer counsel if disputes arise.
The Jordan Securities Commission is a treasured resource for understanding Jordan's securities law. The JSC website provides laws, regulations, and additional resources related to the securities market. Investor guides, checklist for IPOs, disclosure regulations are among the many resources available. The Amman Stock Exchange website can also provide valuable information on listed companies and securities.
If you need legal assistance in securities, consider hiring a local attorney familiar with Jordanian securities law. They will guide you through the process, explain your rights and obligations, assist with document preparation, and represent you in case legal disputes arise. If you are unsure, arrange a consultation with a legal professional who specializes in securities and discuss your case to gauge the path forward.
