The Directorate of Market Abuse is a committee of the Financial Services Board with the statutory mandate to investigate cases of Market abuse and to enforce the prohibitions against market abuse in the Securities Services Act, 36 of 2004 (SSA).
Market abuse consists of insider trading (prohibited in section 73 of the SSA), market manipulation (prohibited in section 75 of the SSA), and false reporting (prohibited in section 76 of the SSA).
If the DMA is of the opinion that the SSA has been contravened, it will take enforcement action against the offender. Such cases could be referred to the Enforcement Committee of the FSB, or handed over to the prosecuting Authorities.
The prohibitions against market abuse, the penalties and the DMA’s powers to investigate are set out in Chapter VIII (sections 72 to 87) of the SSA.
The DMA makes a media release after every meeting to update the public on its current investigations. every enforcement action is published once it is completed.
The Johannesburg Stock Exchange, in consultation with the DMA, published a booklet on insider Trading and Other Market Abuse, including the effective management of price sensitive information An electronic version of the booklet is available on this page.