Protection of Businesses Act, 1978
R 385
Insider Trading Act, 1998 (Act No. 135 of 1998)4. Defences |
| 1) | An individual shall not be guilty of any offence contemplated in section 2(1) if such individual proves on a balance of probabilities that he or she-- |
| a) | was acting on specific instructions from a client, save where the inside information was disclosed to him or her by that client; |
| b) | would have acted in the same manner even without the inside information; |
| c) | was acting on behalf of a public sector body in pursuit of monetary policy, policies in respect of exchange rates, the management of public debt or foreign exchange reserves; or |
| d) | was acting in pursuit of the completion or implementation of an affected transaction as defined in section 440A of the Companies Act, 1973 (Act No. 61 of 1973). |
| 2) | An individual shall not be guilty of the offence set out in section 2(2) if such individual proves on a balance of probabilities that he or she-- |
| a) | believed, on reasonable grounds, that no person would deal in the securities or financial instruments as a result of such disclosure; or |
| b) | disclosed the inside information in the proper performance of the function of his or her employment, office or profession and at the same time disclosed that the information was inside information. |
| 3) | The defences set out in subsections (1) and (2) are not intended to be the only defences available in any proceedings under this Act. |
