Monday, April 19

JSE to investigate MTN over possible “insider trading”

There might be yet more trouble coming for MTN after JSE announced that it would be conducting a thorough investigation into the MTN business following the way in which the brand had chosen to announce the fine imposed upon them by NCC for failure to disconnect unregistered users.

It is no more news that MTN was fined to the tune of $5.2 billion by the telecoms regulator in Nigeria and while MTN might just be looking to find a way out of that situation, the Johannesburg Stock Exchange (JSE) has started investigation into MTN on the grounds of the opinion that insider trading might have occurred before the announcement of the fine which would mean that MTN purportedly delayed the announcement.

Andre Viser, who is the head of Issuer Regulation at the JSE has said that “The investigation will follow due process to
establish whether there have been any breaches of the listings requirements and can be a lengthy process”

Speaking further was Peter Redman who is a senior technical advisor in the Market Regulation division of JSE. He said “As with all price sensitive announcements, the Market Regulation team is looking into trades that took place before the announcement in order to determine if there is any evidence of possible insider trading.”

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