1 Introduction 1
1.1 Aims 6
1.2 Methodology 7
1.3 Outline of the book 8
2 Insider dealing: the crime of information 10
2.1 Introduction 10
2.2 Historical background 11
2.3 Theoretical basis of insider's liability 15
2.3.1 Legal theories 15
2.3.2 Efficiency theories: the hobble, bubble and tumble 22
2.4 The regulation debate 33
2.4.1 Arguments against regulation 33
2.4.2 Arguments in favour of regulation 38
2.5 Conclusion 43
3 Fighting a common enemy: Anglo-American and Japanese attitudes on insider dealing 45
3.1 Introduction 45
3.2 Comparative analysis of regulatory regimes 46
3.2.1 Regulatory mode 46
3.2.2 Prohibited information 49
3.2.3 The insider 54
3.2.4 Prohibited conduct 60
3.2.5 Affected securities 63
3.2.6 Intention 66
3.2.7 Regulatory authorities 69
3.2.8 Remedies 72
3.3 Has it worked? 80
3.4 Conclusion 87
4 Flags of confusion: the limitations and frustrations of imitation 88
4.1 Introduction 88
4.2 Background 88
4.3 The prohibition 92
4.3.1 Who is an insider? 94
4.3.2 What is inside information? 109
4.3.3 What an insider is prohibited from doing 116
4.3.4 What are the affected securities? 121
4.3.5 Knowledge 122
4.3.6 The exemptions 124
4.3.1 Penalties 129
4.4 Enforcement 132
4.5 Conclusion 141
5 A critical expedition into the Kingdom of Nigeria's insider dealers 142
5.1 Introduction and background 142
5.1.1 Reason for the study 142
5.1.2 Methodology 143
5.1.3 Ethics 144
5.1.4 The subjects 144
5.1.5 Anonymization 145
5.1.6 Empirical evidence 146
5.2 Introduction to insider dealing in Nigeria 148
5.2.1 Understanding by relevant parties 148
5.2.2 Patterns of misunderstanding 152
5.2.3 Reasons for lack of understanding 158
5.2.4 Effects of lack of understanding 159
5.3 Profile of the Nigerian insider dealer 160
5.3.1 Does it exist? 160
5.3.2 The Nigerian insiders 162
5.4 The antics and tactics of the Nigerian insider dealer 185
5.4.1 Types of insider dealing in Nigeria 186
5.4.2 Effects of insiders'activities 202
5.5 Conclusion 205
6 Fixing the leaking roof of Nigeria's insider dealing regulation 207
6.1 Introduction 207
6.2 Insiders' pre-emption 208
6.2.1 Restrictions on insiders' holding 208
6.2.2 Short-swing and freeze rule 214
6.3 Private right of action 217
6.3.1 Action by the company 218
6.3.2 Corporate derivative action 222
6.3.3 Personal action 228
6.3.4 Representative action 230
6.4 Civil remedies 233
6.4.1 Fiduciary duties 233
6.4.2 Breach of confidence 243
6.4.3 Misrepresentation 248
6.4.4 Breach of statutory duty 258
6.5 Other factors 261
6.5.1 Administrative procedure 261
6.5.2 Disclosure 262
6.5.3 Investigations 262
6.5.4 Investment frauds insurance 263
6.6 Conclusion 263
7 Conclusion 265
7.1 The future of regulation 268
Bibliography 274
Appendix: pertinent sections of the Investments and Securities Act 2001 (ISA) 293
Index 299