Market Abuse
MICHAEL KATZ: Regulators do not have the power to judge viability of proposed JSE listings
The recent spate of high-profile corporate failures has given rise to an interesting exchange of views about the role of regulations and regulators to curb such failures, which have been so costly to thousands of investors. One suggestion that has emerged is that it is the function of the JSE to refuse to list a company unless the exchange has satisfied itself about the commercial merits and viability of the company. It is respectfully submitted that the JSE does not have the power to refuse an application for listing on the grounds of the commercial merits of the applicant. Nor should it, or any other regulator, have such power. This topic is not novel and has been the subject of debate over many decades. Following the devastation of the Great Depression, in which investors lost their savings and faced poverty and destitution, the challenge faced by politicians was considerable. It was one of the important issues addressed by president Franklin Delano Roosevelt in his New Deal legi...
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