THE MEANING OF ARTIFICIAL PRICE: LESSONS FROM AUSTRALIAN CASE DIRECTOR OF PUBLIC PROSECUTIONS (CTH) V JM [2013] HCA 30
Published date | 16 August 2019 |
Date | 16 August 2019 |
THE MEANING OF ARTIFICIAL
PRICE: LESSONS FROM AUSTRALIAN
CASE DIRECTOR OF PUBLIC
PROSECUTIONS (CTH) V JM [2013]
HCA 30
TSHEGOFATSO KGARABJANG
Lecturer, School of Law, University of South Africa
Keywords: artificial price for company securities, Australian
Corporations Act 2001, Financial Markets Act 19 of 2012,
prohibited trading practices, market manipulation.
ABSTRACT
In recent times, South Africa and other jurisdictions with which it
shares corporate commercial legal traditions have upped the tempo
on tightening corporate commercial law policy and regulation.
One of the ways in which this is done is by introducing rules to
regulate conduct of players within the capital financial markets. In
South Africa, this is evidenced by the enactment of the Financial
Markets Act 19 of 2012. Central to the regulation of financial
markets is the prohibition of certain trading practices as clearly set
out in s 80 of the Act. One of such prohibited trading practices is
the direct or indirect use of or participation in any practice which
has created or is likely to have the effect of creating an artificial
price for the relevant securities of the company concerned. Since
there is no single case in South Africa dealing extensively with
the conduct of creating an artificial price for the securities of a
company, lessons can be derived from jurisdictions like Australia,
which shares corporate commercial legal traditions with South
Africa.
I INTRODUCTION AND BACKROUND
In Australia market manipulation is regulated by the Corporations Act
2001 (hereafter ‘Corporations Act’). Among others, the Corporations
Act prohibits a person from taking part in a transaction that has or is
likely to have the effect of creating or maintaining an artificial price
93
(2015) 1(1) JCCL&P 93
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