The Securities and Exchange Commission (SEC) has promoted the use of whistle blowing policy to help investors report any form of suspicious transactions occurring in the capital market.
The acting Director-General, SEC, Ms. Mary Uduk, expressed displeasure over the private placement bubble that happened with the support of market operators who encouraged issuers to take advantage of loopholes in the relevant investment laws at the time.
Uduk stressed that several efforts had been made to issuers to list their shares, adding that market operators continued to flout the law regarding private placements, knowing that the law do not permit the commission to regulate private companies.
According to her, “Insider trading is what we have to prove. A lot of us are in the market and we have whistle blowing mechanism. It is the operators who will be in a better position to know and report such infractions.
“For those that have been reported to us, we have been carrying out investigations and once we have evidence we will invite them and also refer them to the relevant authorities.
“With the whistle blowing provision, we have always asked operators in the market to come to our aid if they find any unwholesome activity going on. It is our market and so we all have to do our bit.”
Uduk added that defaulters would be made to face the full wrath of the law.