It is unfair to the investing public and detrimental to the interests of the security markets for a person to trade on the basis of inside information. In this short dissertation, the laws regulating insider trading in South Africa prior to the current legislative provisions are briefly discussed. It is found that the old provisions were inadequate in deterring and punishing insider trading activities. The current legislative provisions are analysed in detail. It becomes clear that whilst the current provisions are a substantial improvement on their predecessor, certain aspects need to be reconsidered. These include the widening of their scope to include trading in all kinds of derivatives; the reformulation of the statutory civil action and the empowerment of the securities regulation panel to bring a civil action against insider traders. / Private Law / LL.M.

Magister Legum - LLM / This study is on the insider trading framework of Tanzania. The researcher has made enquiries whether the Tanzania legal framework governing insider trading provides strong enough enforcement mechanisms, including remedies and measures against malpractices found on the securities market to attract investor confidence. Critical analysis is done of the Capital Markets and Securities Act, 79 of 1994 (RE 2002) in conjunction with an investigation into the Capital Markets and Securities Authority (CMSA) a body corporate charged with the duties among others, of protecting the integrity of the securities market and maintaining surveillance over securities to ensure orderly, fair and equitable dealings in securities. The researcher uses a comparative approach from other jurisdictions considered as international best standards of the English and South African insider trading legislation. Discussions on the study are presented in chapters. Chapter one is the general introduction to the Study. It is the reproduction of the research proposal. Chapter Two is on the overview of insider trading framework of Tanzania. An analysis is made on the provisions of the Capital Market and Securities Act, 79 of 1994 (RE 2002). It is revealed that the enforcement mechanisms are inadequate and ineffective. The Capital Market and Securities Act, 79 of 1994, (RE 2002) neither defines nor provides the interpretation to legal concepts such as insider, inside information and publication. Civil remedies and criminal penalties provided in the Tanzania Capital Market and Securities Act, 79 of 1994, (RE 2002) are inadequate for deterrent purposes to combat insider trading practices. In chapter three the researcher examines the Capital Market and Securities Authority (CMSA) in terms of fulfillments of its roles, functions, and powers. It is submitted that the CMSA and the DSE have never contributed much to resolving the problem of securities market abuses. Chapter four extend the study to the English and South Africa insider trading legislation considered as international best practice and therefore comparable. The researcher has observed that flaws in areas of prohibition, enforcements, defences and the lacuna on identified concepts of insider trading make the Tanzanian insider trading legislation remain more symbolic than real in terms of its efficiency to combating insider trading practices. Chapter five provides the conclusions and recommendations on the study. The researcher has provided recommendations on curbing the problem of insider trading in Tanzania, including repealing and enacting a new strong and effective insider trading legislation.

This thesis presents three models of asset pricing involving non-competitive behavior and asymmetric information. In the first model, a risk averse investor with private information about dividends trades shares over an infinite time horizon with risk neutral uninformed agents. The informed investor trades strategically in equilibrium. The second model also involves an infinite time horizon, but all agents are risk averse and equally informed about dividends. Non-competitive behavior is exogenously specified; price takers trade shares with a strategic investor who accounts for the effects of her trades on the stock price. In this case, an endogenous information asymmetry arises in equilibrium. Closed form equilibria are derived for both models and implications for price dynamics are explored. While the first model constitutes a new extension of the multiperiod Kyle model of insider trading, the second model generates more interesting price dynamics. If the strategic investor manages a large mutual fund, significant risk premia and price volatility may arise in equilibrium. In fact, if mutual fund participation is sufficiently widespread, multiple equilibria may exist. The third model extends the multiperiod Kyle model to a case where the insider observes a noisy signal of the stock's terminal liquidation value. An equilibrium much like Kyle's is derived. Price tends toward value over time, and stock price volatility depends on both the drift and volatility of the insider's private signal. Like the Kyle model, the insider's trading activity leaves no detectable trace in trading volume, expected returns, or price volatility. / Business, Sauder School of / Finance, Division of / Graduate

This dissertation examines the role of insider trading activity in explaining announcement price effects of seasoned debt and equity issues for investment. As has been widely discussed in the finance literature, the announcement of new financing for investment purposes can convey good or bad news depending on the motivation behind the issue, the profitability of the investment, and the stage of firm development. If insider trading can effectively reduce information asymmetry about investment opportunities at the time of corporate financing announcements, markets can be expected to react less negatively to these announcements. Corporate insiders know more about the expected impact of current earnings and future investments than anyone else. Consequently, the value and direction of their personal trading should reflect, to some extent, their expectation of the value of the firm in the future. John and Mishra’s [1990] signaling model explains how insider trading can act as a joint signal along with a corporate announcement in sending information to the market efficiently. A cross-sectional analysis is conducted to test the hypothesis that announcements of new financing (debt or equity) for investment that are preceded by insider buying are accompanied by a less negative stock price response than issues that are preceded by insider selling. This analysis is followed by several tests designed to examine the robustness of this relationship. The results of this study suggest a correlation between trading and announcement period price effects for equity issues that is consistent with this hypothesis, though the effect is more pronounced for smaller firms. There appears to be no connection between insider trading and the announcement period reaction to debt issues, however. / Ph. D.

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: This research report reviews South African and international legislation aimed at preventing insider trading and provides an overview of the successful criminal and civil proceedings taken against insiders. It highlights the possible preventative measures South African companies and legislature can take to reduce insider trading. The United States of America is one of the few countries that had successfully implemented legislation prohibiting insider trading prior to the 1990s. Most countries, including South Africa, only implemented legislation prohibiting insider trading in the late 1990s. Due to apartheid and sanctions against South Africa, the JSE has built up a legacy of being an insider's haven. The Directorate of Market Abuse has the task of transforming this legacy to restore investors' confidence in the market in order to promote economic growth. The success of the legislation is firstly measured by the knowledge the market has gained relating to insider trading since the implementation of the legislation. According to the South African market, insider trading is unethical, but 22% of the participants in the G:cnesis survey still believe that it is an acceptable practice in the South African market. South African companies therefore need to educate their employees and take preventative measures to reduce insider trading in order to erode this culture. Insider trading can only be prevented and reduced if legislation is enforced. Globally, few legal criminal proceedings have been successful, therefore legislation in most countries makes provision for civil remedies. As the burden of proof in a civil legal proceeding is only on "a balance of probabilities", civil proceedings against insiders have been successful. In South Africa, the majority of cases referred for civil legal action have been settled out of court by the alleged insider without admitting guilt to a criminal offence. The South African legislation regulating insider trading in the market is aligned with legislation globally. South Africa's future challenges are to maintain the initial success achieved in reducing insider trading. The establishment of a specific court specialising in financial crime and monitoring specific changes to legislation could increase the possibility of future success. / AFRIKAANSE OPSOMMING: Die projek ondersoek die Suid-Afikaanse en internasionale wetgewing teen binnehandel. Verder word die suksesvolle kriminele en siviele verrigtinge teen diegene wat hulle aan binnehandel skuldig maak onder die soeklig geplaas. Die projek beklemtoon die moontlike voorkomingsmaatreels wat Suid-Afrikaanse maatskappye en regslui kan implementeer om moontlike toekomstige binnehandel te bekamp. Die Verenigde State van Amerika is een van die min lande wat reeds voor die 1990s wetgewing teen binnehandel suksesvol geimplementeer bet. Ander lande, insluitend Suid-Afrika, het eers in die laat 1990s wetgewing teen binnehandel geproklameer. Apartheid en sanksies teen Suid-Afrika het 'n nalatenskap van vrye binnehandel op die JSE gelaat. Dit is die taak van die Direktoraat van Markmisbruik om hierdie nalatenskap uit te wis, sodat beleggersvertroue in die mark herstel kan word, wat weer tot ekonomiese groei sal lei. Een van die maatstawwe om die sukses van die wetgewing te meet, is om te bepaal hoeveel kennis die finansiele gemeenskap sedert die implementering van die nuwe wetgewing ingewin het. Volgens die finansiele gemeenskap is binnehandel oneties, maar 22% van die deelnemers aan die G:encsis-opname glo dat binnehandel wel in Suid-Afrika aanvaarbaar is. Daarom moet Suid-Afrikaanse maatskappye hulle werknemers se kennis oor binnehandel verbreed en ander voorkomende maatreels in plek stel om die kultuur van binnehandel te elimineer. Binnebandel kan slegs voorkom en verminder word indien wetgewing geimplementeer word. Relatief min kriminele sake teen binnehandel lei tot skuldigbevinding, maar plaaslike en internasionale wetgewing maak voorsiening vir siviele aksies. In 'n siviele hofsaak moet ingediende bewyse slegs na alle waarskynlikheid die skuld van die oortreder bewys, wat suksesvolle siviele vervolging moontlik maak. Die meerderheid siviele sake in Suid-Afrika word buite die bar geskik sonder dat die aangeklaagde skuld aan 'n kriminele daad erken. Die Suid-Afrikaanse wetgewing is in lyn met internasionale standaarde. Suid-Afrika staar verskeie uitdagings in die gesig ten opsigte van die handhawing van die huidige suksesvolle bekamping van binnehandel. Die moontlike totstandkoming van 'n spesiale hof, wat slegs finansiele verwante oortredings aanhoor en veranderings aan die wetgewing kontroleer, kan bydra tot die toekomstige sukses van die Suid-Afrikaanse wetgewing.

by Hui Lok Yee Connie. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1999. / Includes bibliographical references (leaves 92-95). / ABSTRACT --- p.iv / ACKNOWLEDGEMENT --- p.v / TABLE OF CONTENTS --- p.vi / Chapter / Chapter I. --- INTRODUCTION --- p.1 / Objectives of Securities Regulations --- p.3 / Regulatory Framework of the Hong Kong Securities Market --- p.5 / Objectives of This Study --- p.6 / Methodology --- p.7 / Chapter II. --- DISCLOSURE OF INTERESTS --- p.8 / Development of Securities (Disclosure of Interests) Ordinance in HK --- p.8 / Disclosure of Interests in Shares --- p.9 / Commentary --- p.17 / Recommendations --- p.23 / Chapter III. --- INSIDER DEALING --- p.29 / Development of Securities (Insider Dealing) Ordinance in HK --- p.29 / Overview of the Supervision of Insider Dealing Activitiesin Hong Kong and Singapore --- p.30 / Circumstances of Insider Dealing --- p.32 / Consequences of Insider Dealing --- p.36 / Case Studies --- p.39 / Commentary --- p.51 / Recommendations --- p.55 / Chapter IV. --- CONCLUSION --- p.60 / APPENDICE --- p.63 / Appendix 1 --- p.64 / Appendix 2 --- p.68 / Appendix 3 --- p.72 / Appendix 4 --- p.76 / Appendix 5 --- p.77 / Appendix 6 --- p.85 / Appendix 7 --- p.90 / Appendix 8 --- p.91 / Appendix 9 --- p.92 / BIBLIOGRAPHY --- p.93

Thesis (doctoral)--Technische Universität, Darmstadt, 2002/2003. / Includes bibliographical references.

This thesis addresses two important issues necessary to understand whether insider trading should be prohibited: the effects of insider trading on stock prices and the compensation to insiders for providing information and other related services. This task is accomplished by analyzing stock price changes during corporate takeovers, before and after the regulatory changes in the 1980's that were designed to reduce the level of insider trading. In this thesis, we develop an indirect measure of insider trading that shows how observable stock price movements during takeovers allow one to make inferences about changes in insider trading after regulatory changes. Specifically, we show that when inside information is partially revealed to the market, the effects of regulatory changes on insider trading can be identified by examining the price movements of stocks around takeover announcements. If, however, information is not revealed at all or is fully revealed, it is impossible to identify the effects of regulatory changes on insider trading. We also develop a segmented diffusion model to analyze price movements characterized by cumulative abnormal returns during the period surrounding a takeover announcement. An econometric model is developed to estimate the segmented diffusion model. Naturally, this methodology applies to the study of various events in addition to corporate takeovers and regulatory changes. We conduct empirical analysis to test three hypotheses. With regard to Hypothesis I, we find strong evidence that the tightening of insider trading regulations in the 1980's was effective and that inside information was partially revealed to the market. With regard to Hypothesis II, we find evidence that insider trading regulations have more effect on negotiated takeovers than on takeovers initiated by bidding. With regard to Hypothesis III, we find weak evidence that insiders associated with acquiring firms seek fewer but more profitable takeovers after the introduction of tighter regulations.

Thesis (doctoral)--Universität Würzburg, 2009. / Includes bibliographical references (p. 197-209).

Thesis (doctoral)--Johannes Gutenberg-Universität, 2005. / Includes bibliographical references (p. [343]-364) and index.