Financial Markets Control Act, 1989 (Act No. 55 of 1989)23. Action for Damages |
(1)
| (a) | Any person who contravenes or fails to comply with any rule of a financial exchange shall be liable to any other person for any loss or damage suffered by that person as a result of such contravention or failure. |
| (b) | The defences applying to an action for damages in respect of the breach of a statutory duty shall mutatis mutandis be available to any defendant in an action contemplated in paragraph (a). |
| (2) | A person who contravenes a provision of section 20, 21 or 22 shall be liable to pay damages to any other person who, in dealing in financial instruments, suffers a loss by reason of the difference between the price at which the dealing takes place and the price at which it would be likely to have taken place if the contravention had not occurred. |
| (3) | The amount of damages for which a person shall be liable under subsection (2) shall be limited to twice the profit gained or likely to be gained, or loss avoided or likely to be avoided, by him in consequence of the relevant contravention of the provision of the section in question. |
| (4) | An action contemplated in subsection (1) or (2) shall not lie after the expiration of a period of two years commencing — |
| (a) | in a case contemplated in subsection (1), on the day of the relevant contravention or failure; or |
| (b) | in a case contemplated in subsection (2), on the day of completion of the dealing in which the loss occurred. |
| (5) | The Registrar may, if the Registrar considers it to be in the public interest, bring an action in the name of, and for the benefit of, a person or persons for recovery of damages for a loss referred to in subsection (2) suffered by that person or those persons. |
| (6) | Nothing contained in this section shall affect any liability which a person may incur under the common law or any law. |