The Insider Trading Directorate (ITD) has sought legal recourse in 20 of the 100 cases it has investigated since its inception in January 1999.
This is according to the annual report of the Financial Services Board, which is responsible for the ITD.
The ITD has logged 136 cases for investigation of which 100 have been finalised. In 20 of these cases, the ITD pursued legal action.
Thirteen were settled out of court while seven matters are likely to proceed to trial, the FSB said.
In terms of the settlements, the FSB received R5,4-million up to March 31 this year.
”…after recovery of the FSB’s investigation costs these funds were distributed to investors that could have been prejudiced by insider trading.
”The recovery and distribution of these funds, has contributed substantially to a more positive attitude towards the FSB’s activities and the JSE regarding insider trading regulation.” – Sapa