Securities Markets Act 1988

  • repealed
  • Securities Markets Act 1988: repealed, on 1 December 2014, by section 4(1)(b) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
  • Previous title has changed
11C Presumption as to false or misleading appearance of trading, etc
  • (1) A person (A) is presumed to contravene section 11B if A is directly or indirectly a party to trading in the securities of a public issuer from which no change in beneficial ownership results.

    (2) A person (A) is also presumed to contravene section 11B if—

    • (a) A has made an offer to trade the securities of a public issuer; and

    • (b) either A or, to A's knowledge, A's associate, has made or proposes to make an opposite offer (the opposite offer) to trade securities of the public issuer; and

    • (c) the opposite offer substantially matches A's offer as to the number and price of the securities.

    (3) There is no presumption under subsection (1) or subsection (2), and it is a defence in any proceeding against A for contravention of section 11B, if A proves, on a balance of probabilities, that the trading in securities occurred, or the offer to trade was made, for a legitimate reason.

    (4) There is no presumption under subsection (1), and it is a defence in any proceeding against A for contravention of section 11B, if A proves, on a balance of probabilities, that—

    • (a) in trading the securities A was acting on behalf of another person; and

    • (b) A did not know, and ought not reasonably to have known, when trading the securities that no change in beneficial ownership would result.

    Section 11C: inserted, on 29 February 2008, by section 5 of the Securities Markets Amendment Act 2006 (2006 No 47).