The new South African insider Trading Act: Sound law reform or legislative overkill?

Abstract

This article provides a detailed analysis of the Insider Trading Act, 1998, of South Africa. While it welcomes those provisions designed to proscribe insider trading by creating offences and introducing severe sanctions, it criticizes the Act for doing little to promote the goals of corporate compensation and market efficiency. The article adopts a comparative approach and draws widely on legislative attempts in other jurisdictions to control insider trading.

Overview analysis of the regulation of insider trading in Zimbabwe during the corona virus pandemic

“…Nonetheless, for the purposes of this article, the term “insider trading” refers to the abuse of price-sensitive non-public inside information by an insider or any other person that concludes illicit transactions in listed securities to which that information relates to the detriment of ignorant investors and other related persons that do not have such information (Chitimira, 2021, pp. 8–9; Osode, 2004, p. 303; Botha, 1991, pp. 2-3).…”

“…Nonetheless, the term “individual” is not expressly defined in the Securities Act (section 87). It appears that the reference to “individual” in all insider trading provisions of the Securities Act means that they are limited individual offenders and does not apply to juristic persons (Osode, 2000, pp. 239–263; Cassim, 2007, pp.…”