An analysis of the law against insider trading in Ugandan Capital market
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Date
2018-10
Authors
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Journal ISSN
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Publisher
Kampala international international: School Of Law
Abstract
As the world continues to expand in global markets, trading of shares, bonds, derivatives and
other instruments continue to increase. One form of trading that has received considerable
interest in recent years is insider trading. In order to protect the integrity of the market and to
combat market abuse in the Ugandan Capital markets, the Capital markets Authority Act, the
subsequent establishment of the Ugandan securities Exchange in 1997 and Insider Trading
Rules were enacted prohibiting the dealing of securities of a listed company by an insider of
that company which brought some confidence in the capital market. The provisions of Capital
markets Authority Act were to some extent inadequate and ineffectively implemented and
eventually the Act was amended to overcome the flawed provisions. It is against this
background that an analysis of the legal and regulatory framework of market abuse and
insider trading is carried out to expose the flaws that were previously embedded in Uganda
market abuse laws. This is done to raise awareness of the situation on the part of the relevant
stakeholders. To this end, this research is a conceptual study of the provisions of the Act
prohibiting insider trading, and the Ugandan Securities Exchange Insider Trading Rules,
2008, analyzing the goal of preventing insider trading and to recommend possible regulatory
measures that could be incorporated in the Uganda market abuse regime not only to bridge
the gaps for a more comprehensive approach on insider trading but also to further increase
investor confidence in Uganda's stock exchange.
Description
A research report submitted in partial fulfillment of the Requirements for the a ward of the degree of bachelor of Laws of Kampala international university
Keywords
Business law, Law, Insider trading, Ugandan, Capital market