Legislations and regulations to prohibit to abuse securities market.
2.1 It shall be prohibited to abuse the securities market by making fraudulent trades on the securitiesmarket,creating artificial securities prices, deceiving clients and other participants in the securities marketwiththe intention of inducing or dissuading participation in trade, or in any other manner.
2.1.2 Where an agreement is entered into in relation to a particular security for the purpose of misleadingaclient or participant in the securities market and such agreement gives the appearance that the security isbeing actively traded notwithstanding that there has not been any change of ownership, or where partiescolludeto place purchase orders or enter into agreements in respect of a particular security within a certain pricerange, this shall be considered as having made a fraudulent trade.
2.1.3 If two or more transactions have been entered into directed at increasing, decreasing, or fixing themarket price for the purpose of ensuring that another person buy, not buy, order, or not order a certainsecurity, this shall be considered as having created an artificial securities price.
The following acts or omissions shall be considered deceiving with the purpose of inducing or dissuadingparticipants in the securities market and clients from trading:
2.1.4.1 issuing or publishing incorrect, misleading, or false information, projections or estimates, orfailingto disclose material facts;
2.1.4.2 misleading a counterparty to a transaction by giving false information in relation to certain facts;or
2.1.4.3 misleading a counterparty to a transaction by utilizing certain methods or devices.

General obligations of the issuer, investor and legal entity to have related with them
2.1.5 The FRC shall undertake regular supervision to determine whether a regulated entity is in compliancewiththe provisions of this Law, the rules and regulations issued by the FRC in accordance therewith, and theconditions and requirements of its license.
2.1.6 If the FRC considers it necessary it may at any time inspect the activities of a regulated entity atitsown initiative or in accordance with information or a request submitted by individuals, legal entities orthecompetent regulatory bodies of foreign jurisdictions

Prohibition on participation in trading activities using inside information
2.1.7 A holder of inside information shall be prohibited from the following activities:
2.1.8 participating in the trading of securities or derivative financial instruments whose price or volumeoftrade may fluctuate as a result of the information;
2.1.9 regardless of whether or not it is known that the information is inside information, proposing orinducingothers to participate in the trade of securities or derivative financial instruments whose price or volumeoftrade may fluctuate as a result of the information; or
2.1.10 disclosing of inside information to others otherwise than in the course of one's professional duties.
2.1.11 If a holder of inside information or its connected persons have participated in the trade ofsecuritiesor financial instruments based thereon/deriving therefrom using inside information, it shall be deemed tohaveviolated the provisions of Article 78.1 of this Law.
2.1.12 If client cash balance does not reach to buy securities, the client shall not give an order to buythesecurities
2.1.13 The client shall not give an order to buy or sell securities within the framework of purpose toartificially affect to the stock price.
Mongolian Stock Exchange JSC shall automatically control daily securities trading via “Investigationmanager”,