LLM Theses and Dissertations (2022)

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Browsing LLM Theses and Dissertations (2022) by Subject "Efficient markets"

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    The Rationale for and enforcement of continuous disclosure frameworks in securities regulation in South Africa
    (Strathmore University, 2022) Mamvura, Enodias
    Companies listed on financial markets are expected to disclose new non-public material information to investors and market participants. Continuous disclosure entails that investors always envisage being promptly informed of any new price-sensitive information concerning a listed entity as a sine qua non for their informed investment decisions. Enforcement of continuous disclosure obligations through criminal actions, civil penalties and private enforcement mechanisms instils investor confidence and, most importantly, enhances the integrity and efficiency of the market. South Africa’s continuous disclosure framework does not have civil and criminal statutory liability penalties for issuers’ and directors’ breach of continuous disclosure obligations. The study utilised doctrinal legal research and comparative legal analysis in analysing South Africa’s continuous disclosure framework. The absence of civil and criminal statutory liability provisions was found to undermine both private and public enforcement of continuous disclosure obligations. The study also found that international instruments on securities regulation highlight the rationale for continuous disclosure and encourage public and private enforcement of continuous disclosure obligations. The research recommends the enactment of criminal and civil liability provisions to change the status quo. The study is fundamental to policymakers, retail and institutional investors and financial regulators.