Section 132 Investments and Securities Act

Section 132 of the Investments and Securities Act 2025 is about False trading and market rigging transactions. It is under Part XI (Trading in Securities) of the Act. It provides as follows:

(1) A person shall not create, or cause to be created, or do anything which may create a false or misleading appearance of active trading in any securities on a securities exchange or in relation to the market for the price of any such securities.

(2) A person shall not —
(a) by means of purchase or sale of any securities not involving a change in the beneficial ownership of those securities; or
(b) by any fictitious transactions or devices, maintain, inflate, depress, or cause fluctuations in the market price of any securities.

(3) Without prejudice to subsection (1), a person shall be deemed to have created a false or misleading appearance of active trading in securities on a securities exchange or financial market infrastructure where such person —

(a) approves, participates in, is concerned with or carries out, either directly or indirectly, any transaction on securities which does not involve any change in the beneficial ownership of the securities;
(b) makes or causes to be made an offer to sell securities at a specified price where he knows that a person associated with him has made or caused to be made, an offer to purchase the same or substantially the same number of securities at a price which is substantially the same as the first mentioned price; or

(c) makes or causes to be made an offer to purchase any securities at a specified price where he knows that a person associated with him has made or caused to be made, an offer to sell the same number of securities at a price which is substantially the same as the first mentioned price.

(4) A person shall not be deemed to have violated the provisions of this section if it is established that the purpose or purposes for which he did the act was not, or did not include, the purpose of creating a false or misleading appearance of active trading in securities on a securities exchange or financial market infrastructure.