Legal Analysis of Security Market Manipulation

The manipulation of the securities market leads to a collapse in the market equilibrium and its withdrawal from the natural state and the loss of investor reliance, there are actions that cause artificial and false positives, and the seduction of investors, thereby generates huge profits from false price changes. This practice has caused the most damages to investors of the capital market as a consumer and may be based on information or transactions. In our country, in addition to the disciplinary guarantee, there is also a criminal and legal guarantee in accordance with paragraph 3 of Article 46 of the Market Act of 1384 and general legal rules. The criminal liability is a three-month imprisonment of up to one year, or a fine of two to five times the profit or loss incurred, or both penalties under the above-mentioned clause. In addition, the perpetrator, in accordance with the general rules of civil liability and Article 52 of the mentioned law, is obliged to compensate the losers and the accuracy of the contract concluded after this act is a matter of controversy and discussion, which is based on the preservation of right to terminate and the principle of accuracy.