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Johannesburg - The Financial Services Board's Directorate of Market Abuse is currently investigating 11 cases of possible insider trading on the JSE, it was revealed on Tuesday.
It is also investigating 12 cases of possible prohibited trading practices or market manipulation.
The DMA emphasised that these investigations were not into the affairs of the companies themselves but rather in to trading in shares on the stock
exchange.
The DMA can refer cases of insider trading to the FSB Enforcement Committee. In such cases the Enforcement Committee may order that the alleged offender to pay to the FSB the profit made or the losses avoided as a result of the offending transactions, and a penalty of up to three times such amount. These funds are distributed, after recovery of costs, to persons who may have been prejudiced by the offending transactions.
Market manipulation and false reporting cases can also be referred to the Enforcement Committee that can impose a penalty and a cost order on the alleged offender.
"In addition market abuse transgressions are criminal offences in terms of the Act. The Director of Public Prosecutions may institute criminal action against any person. It is not the function of the DMA to institute criminal prosecutions but would provide all information necessary to assist the Director of Public Prosecutions," the DMA said.
Since 1999, the DMA, and its predecessor, the Insider Trading Directorate investigated a total of 255 cases. 198 cases were closed because there was no, or insufficient, evidence that the Securities Services Act (or the now repealed Insider Trading Act) was contravened. In 57 cases the DMA decided to proceed with enforcement action.
The penalties imposed on offenders to date amounts to more than R60m.
It is also investigating 12 cases of possible prohibited trading practices or market manipulation.
The DMA emphasised that these investigations were not into the affairs of the companies themselves but rather in to trading in shares on the stock
exchange.
The DMA can refer cases of insider trading to the FSB Enforcement Committee. In such cases the Enforcement Committee may order that the alleged offender to pay to the FSB the profit made or the losses avoided as a result of the offending transactions, and a penalty of up to three times such amount. These funds are distributed, after recovery of costs, to persons who may have been prejudiced by the offending transactions.
Market manipulation and false reporting cases can also be referred to the Enforcement Committee that can impose a penalty and a cost order on the alleged offender.
"In addition market abuse transgressions are criminal offences in terms of the Act. The Director of Public Prosecutions may institute criminal action against any person. It is not the function of the DMA to institute criminal prosecutions but would provide all information necessary to assist the Director of Public Prosecutions," the DMA said.
Since 1999, the DMA, and its predecessor, the Insider Trading Directorate investigated a total of 255 cases. 198 cases were closed because there was no, or insufficient, evidence that the Securities Services Act (or the now repealed Insider Trading Act) was contravened. In 57 cases the DMA decided to proceed with enforcement action.
The penalties imposed on offenders to date amounts to more than R60m.
