Insider Dealing and Market Manipulation: Enforcement Under the Securities Act 2005

The Securities Act 2005 establishes the regulatory framework for securities markets in Mauritius. The Financial Services Commission (FSC) is responsible for the supervision and enforcement of the Act.

Insider Dealing

Section 111 of the Securities Act 2005 prohibits insider dealing. A person commits an offence if in possession of information not available to the public, that person deals in securities to which the information relates, recommends that another person deal in such securities, or discloses the information to another person who deals or recommends dealing. The penalty on conviction is a fine not exceeding one million rupees and imprisonment for a term not exceeding five years.

False Trading

Section 113 of the Securities Act 2005 prohibits false trading. A person must not enter into a transaction in securities if the purpose of the transaction is to create a false or misleading impression of the market for, or the price of, those securities.

Market Rigging

Section 114 of the Securities Act 2005 prohibits market rigging. A person must not enter into a transaction in securities if the effect or likely effect of the transaction is to increase, decrease, or maintain the price of those securities for the primary purpose of inducing another person to deal in those securities.

FSC Investigatory Powers

Section 124 of the Securities Act 2005 grants the FSC investigatory powers. The FSC may appoint an investigator to examine the affairs of a person where it has reason to believe that there may have been a contravention of the Act. Section 126 empowers the FSC to give directions to persons who appear to have contravened the Act.

This article is for general information purposes only and does not constitute legal advice.