Oecd legal Instruments

III.E. 
Insider trading and market manipulation should be prohibited and the applicable rules 
enforced. 
As insider trading and market manipulation undermine public confidence in and the effective functioning of 
capital markets, they are prohibited by securities regulations, company law and/or criminal law in most 
jurisdictions. These practices can be seen as constituting a breach of good corporate governance as they 
violate the principle of equitable treatment of shareholders. However, the effectiveness of such prohibition 
depends on vigorous enforcement action. 
III.F. 
For companies who are listed in a jurisdiction other than their jurisdiction of incorporation, 
the applicable corporate governance laws and regulations should be clearly disclosed. In the case 
of cross-listings, the criteria and procedure for recognising the listing requirements of the primary 
listing should be transparent and documented. 
It is increasingly common that companies are listed or traded at venues located in a different jurisdiction than 
the one where the company is incorporated. This may create uncertainty among investors about which 
corporate governance rules and regulations apply to that company. It may concern everything from 
procedures and locations for the annual shareholder meeting to minority rights. The company should 
therefore clearly disclose which jurisdiction’s rules are applicable. When key corporate governance 
provisions fall under another jurisdiction than the jurisdiction of trading, the main differences should be noted. 
Another important consequence of increased internationalisation and integration of stock markets is the 
prevalence of secondary listings of an already listed company on another stock exchange, so called cross-
listings. Companies with cross-listings are often subject to the regulations and authorities of the jurisdiction 
where they have their primary listing. In case of a secondary listing, exceptions from local listing rules are 
typically granted based on the recognition of the listing requirements and corporate governance regulations 
of the exchange where the company has its primary listing. Stock markets should clearly disclose the rules 
and procedures that apply to cross listings and related exceptions from local corporate governance rules.