Selected Flaws Hampering the Enforcement of the Insider Trading Prohibition by Key Role-Players in Zimbabwe
Keywords:role-players, market integrity, flaws, insider trading, regulation
Insider trading is one of the illicit market abuse trading practices that are hampering the stability, viability, efficiency and integrity of the Zimbabwean financial markets. In this regard, it is submitted that the Zimbabwean anti-insider trading regulatory framework has not been very successful to date owing to various flaws and factors such as the gaps in the functions and regulatory powers of regulatory bodies, the lack of insider trading awareness and educational programmes, inadequate financial resources and the inconsistent co-operation between the regulatory bodies and other relevant enforcement authorities in Zimbabwe. These and other related flaws have culminated into various challenges such as poor market efficiency, poor market integrity, high market volatility and low public investor confidence in the Zimbabwean financial markets. This could further indicate that insider trading activities are still poorly regulated in Zimbabwe under the Securities Act 17 of 2004 [Chapter 24:25] as amended (Securities Act). Consequently, the article investigates the gaps and flaws in the current anti-insider trading regulatory framwork under the Securities Act. This is done in order to recommend possible measures that could be employed by the relevant enforcement authorities, policy makers and other key role-players to effectively combat insider trading activities in the Zimbabwean financial markets.
Keywords: role-players; market integrity; flaws; insider trading; regulation.
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