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Possible Abuse in South Africa’s Securities Market

The Financial Sector Conduct Authority (FSCA) is investigating 75 instances of possible contraventions of South Africa’s laws governing financial market abuse, all of which relate to listed securities. The investigations include false and misleading statements involving Steinhoff and Tongaat Hulett securities as well as a price manipulation and an insider trading matter involving the securities of cement maker PPC. Ayo Technology Solutions is another listed entity whose securities are under investigation by the FSCA. All but one of the 75 open cases involve securities listed on the JSE and cover possible insider trading, prohibited trading practices such as price manipulation and providing false or misleading statements. The remaining case involves a security listed on one of SA’s two smaller exchanges — A2X or the Cape Town Stock Exchange — though Pascoe declined to say which of these two alternate market trading platforms the security is listed on.