Legal Validity of Insider Trading in the Stock Exchange

Despite of criminalization of insider trading in chapter 6 of the Securities Market Act ratified in 2005, Iranian legislator has not mentioned the validity of such transactions and this question has been abandoned unanswered. Question which includes validity or invalidity of transaction or revocability of such transactions because of bearing loss or deception by teeter or consistency of such transactions because of irrevocability of contracts. However, in the event of such offense, it is essential to compensate the losing. Who and what is the reason of loss and what is the quality and method of compensation, are some subjects of discussion in this article.