Australian securities law relates to securities issued by corporations as well as other securities, including debentures, stocks and bonds issued by governments, and interests in managed investment schemes.
Australian securities regulation rests on the principle that "financial markets cannot function effectively unless participants act with integrity and there is adequate disclosure to facilitate informed judgements".[1] As a result, many of the regulatory rules governing dealings in securities are part of a broader framework that governs financial products, financial services and financial markets.
Mandatory disclosure and conduct regulation underlie much of Australia's securities regulation. False trading, fraudulent dealing, and insider trading are dealt with to prevent improper practices in connection with securities markets. A licensing system operates to ensure securities markets are fair, orderly and transparent. At the same time, securities law is also facilitative, allocating rights and duties in conjunction with general contract law. It also allows for a degree of self-regulation, by the operation for example of an independent securities exchange.
Australian securities law has been substantially modernised in recent years. The core of these laws are found in the Corporations Act 2001 (Cth), which contains provisions governing takeovers, fundraising, and financial products, services and markets.