Scientific Journal of Law and Modern Studies

Scientific Journal of Law and Modern Studies

Limits of stock exchange authority in canceling transactions

Document Type : Research Article

Author
Reza Ahmadi Torkamani
Senior Expert in Industrial Management, Department of Management Education, Islamic Azad University, Semnan Branch, Semnan, Iran. (Corresponding Author)
Abstract
The Securities and Exchange Organization is the institution that oversees the proper implementation of the Securities Market Law of the Islamic Republic of Iran, and the task of preparing and compiling the executive instructions of this law is also the responsibility of that organization. By developing some guidelines, the organization has granted powers to the stock exchange, which are basically given by the legislative body to judicial or quasi-judicial authorities. According to Article 30 of the Civil Code, transactions that meet the basic conditions of validity of the transaction according to Article 190 of the Civil Code, and the parties to the transaction have not considered a suspensive condition for their transactions, are legally correct and effective. Violation of non-mandatory rules by one of the transaction parties is not a valid reason for canceling the transaction by the exchange and violating the rights of other transaction parties and third parties. The stock exchange can prevent this type of transactions by using software infrastructures and creating restrictions, or deal with the wrong person with disciplinary behavior. Giving the authority to cancel correct transactions to the stock market as a non-judicial authority is against the general rules and legal custom.
Keywords
cancellation of stock market transactions
capital market
approval of stock market transactions
securities transactions
Subjects
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  • Receive Date 03 April 2023
  • Revise Date 05 May 2023
  • Accept Date 10 May 2023