Insider Trading in Rwanda: A Critical Analysis of the Legal Framework

In Rwanda the law governing the prohibition of Insider Trading is The Law N°01/2011 of 10/02/2011 Regulating Capital Market in Rwanda, and the Section 355 of the N° 01/2012/OL of 02/05/2012 Organic Law instituting the penal code. This is a conceptual study of these provisions, analyzing their adequacy, and giving comparative perspectives from other jurisdictions in East Africa, and around the world. The findings are that the laws provide sound provisions against insider trading, but some recommendations are made to ensure the law is more robust, as there are some gaps which have been identified. This study assists regulators in their supervisory role to ensure confidence in the Rwanda Stock Exchange as Rwanda seeks to attract Investment, both local and foreign, by protecting the integrity of the Capital Markets through curbing insider trading. It also makes recommendations for legislative reform.