The 1997 Criminal Law also prohibits the dissemination of false information for the purpose of manipulating the prices of traded securities. The relevant section also makes it a crime for an employee of a securities industry association to willfully supply false information, destroy or alter transaction records, or engage in any conduct intending to deceive investors into buying or selling securities.
The law further prohibits anyone from engaging in any conduct that manipulates the price of securities. Stock manipulation is defined as the following:
(1) Engaging in successive sales or purchases by building a dominant position in terms of funds or shares, or using an individual's dominant position in terms of information, and thereby manipulating securities trading prices.
(2) Engaging in collusive activities with another person to mutually trade securities at a prearranged time, price, and method or to mutually buy and sell securities not held by the parties to the transaction, thereby affecting the price and volume of securities traded.
(3) Buying or selling securities to or from oneself without transfer of ownership of the securities by means of making oneself the other party to the transaction, thereby affecting the price or volume of securities traded.
(4) Manipulating securities trading prices by other methods.
Stock manipulation is subject to fines of not less than one time and not more than five times the illegal income gained in the scheme and may result in imprisonment of up to five years.
