Overview analysis of the regulation of insider trading in Zimbabwe during the corona virus pandemic

Abstract

Purpose It is important to note that insider trading is currently outlawed under the Securities Act 17 of 2004 (Chapter 24: 25) as amended (Securities Act) in Zimbabwe. This Act enumerates some practices that may give rise to insider trading liability in the Zimbabwean financial markets. Nonetheless, numerous challenges, such as the lack of adequate financial resources, the lack of sufficient persons with the relevant skills and expertise on the part of the enforcement authorities, lack of political will, inadequacy of insider trading provisions, poor cooperation and collaboration between the relevant authorities and the ongoing coronavirus (Covid-19) pandemic have negatively impeded the effective regulation and combating of insider trading in Zimbabwe. To this end, the author explores the stated challenges and recommend measures that could be used by regulatory bodies and other relevant enforcement authorities to enhance the regulation and combating of insider trading in the Zimbabwean financial markets. This study aims to enhance the detection and combating of insider trading in Zimbabwe. Design/methodology/approach A qualitative research methodology is used through the analysis of relevant legislation and case law. Findings It is hoped that the findings and recommendations made in this study will be considered by the Zimbabwean policymakers. Research limitations/implications The study does not use empirical research methodology. Practical implications The findings and recommendations made in this study could enhance the combating of insider trading activities in Zimbabwe. Social implications The study seeks to curb insider trading in the Zimbabwean financial markets and financial institutions in the wake of the covid-19 pandemic-related regulatory and enforcement challenges. Originality/value The study provides original research on the regulation and combating of insider trading activities in Zimbabwe.