New Mexico Administrative Code
Title 12 - TRADE, COMMERCE AND BANKING
Chapter 11 - SECURITIES
Part 15 - FRAUDULENT PRACTICES
Section 12.11.15.13 - INSIDE INFORMATION

Universal Citation: 12 NM Admin Code 12.11.15.13

Current through Register Vol. 35, No. 18, September 24, 2024

A. An issuer or any person who is an officer, director or affiliate of an issuer or any other person whose relationship to the issuer gives him access, directly or indirectly, to material information about the issuer not generally available to the public is deemed to employ a "device, scheme or artifice to defraud" within the meaning of Section 58-13C-501 A or "an act, practice or course of business that operates or would operate as a fraud or deceit upon another person" within the meaning of Section 58-13C-501 C, who purchases or sells any security of the issuer in this state at a time when he knows material information about the issuer gained from such relationship, which information:

(1) would significantly affect the market price of that security;

(2) is not generally available to the public; and

(3) is not intended to be available to the public unless he has reason to believe and believes that the person selling to or buying from him is also in possession of the information.

B. Notwithstanding Subsection A of this section, activities permitted under the Securities Exchange Act of 1934, its rules and regulations shall not constitute a violation of this section.

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