| 1) |
Any person who, whether directly or indirectly, knowingly deals in a security on the basis of unpublished price-sensitive information in respect of that security, shall be guilty of an offence if such person knows that such information has been obtained- |
| a) |
by virtue of a relationship of trust or any other contractual relationship, whether or not the person concerned is a party to that relationship; or |
| b) |
through espionage, theft, bribery, fraud, misrepresentation or any other wrongful method, irrespective of the nature thereof. |
| 2) |
For the purposes of this section- |
| a) |
"unpublished price-sensitive information", in respect of a security, means information which- |
| i) |
relates to matters in respect of the internal affairs of a company or its operations, assets, earning power or involvement as offeror or offeree company in an affected transaction or proposed affected transaction; |
| ii) |
is not generally available to the reasonable investor in the relevant markets for that security; and |
| iii) |
would reasonably be expected to affect materially the price of such security if it were generally available; |
| b) |
"generally available" means available in the sense that such steps have been taken, and such time has elapsed, that it can reasonably be expected that such information as referred to in paragraph(a) is or should be known to such investor as referred to in subparagraph (ii) of paragraph (a). |
| 3) |
If at criminal proceedings at which an accused is charged with an offence under subsection (1), it is proved that-- |
| a) |
the accused was in possession of unpublished price-sensitive information in respect of the security in question at the time of the alleged commission of the offence; or |
| b) |
unpublished price-sensitive information was obtained in the manner contemplated in subsection(1) (a) or (b), |
he or it shall be deemed, unless the contrary is proved, in the case of--
| i) |
paragraph (a), to have knowingly dealt in that security on the basis of such information; |
| ii) |
paragraph(b), to have known that such information was so obtained- |
| aa) |
any person who contravenes subsection (1) shall be liable to any other person for any loss or damage suffered by that person as a result of such contravention. |
| bb) |
In the case of dealings in a security on a stock exchange or a financial market as defined in section 1 of the Financial Markets Control Act, 1989 (Act No. 55 of 1989), the plaintiff shall not need to prove intention or negligence towards him or it in an action contemplated in paragraph (a). |
| iii) |
The provisions of this section shall not apply to dealings in members' interest in a close corporation. |
| 4) |
Subject to subsection (5), the Minister may, on the advice of the panel, by notice in the Gazette exempt any class of persons from the provisions of this section on such conditions and to such extent as he may deem fit, and may at any time in like manner revoke or amend any such exemption. |
National Student Financial Aid Scheme Act, 1999
