Theoretical aspects of insider trading regulation in Zimbabwe
ISSN: 1359-0790
Article publication date: 7 June 2021
Issue publication date: 10 January 2022
Abstract
Purpose
Insider trading is treated as a punishable offence in many jurisdictions and countries. In relation to this, various theories were developed to justify and enhance the regulation of insider trading in such jurisdictions and countries. For instance, regulatory bodies and the relevant courts in jurisdictions such as the Commonwealth and the European Union as well as in countries such as the USA and the UK have to date developed and consistently applied theories such as the classical theory, misappropriation theory, fiduciary theory, unified theory and equal access theory in their quest to detect, prevent and combat insider trading activities. For the purposes of this article, the aforesaid theories are discussed so as to recommend possible measures that could be adopted by the policy makers to effectively curb insider trading activities in the Zimbabwean financial markets. It is against this background that some theoretical aspects of the insider trading regulation as adopted by the Zimbabwean policymakers, regulatory bodies and the relevant courts are scrutinised in this paper. This is done to, inter alia, investigate possible flaws and the rationale for such direct and indirect application of certain insider trading theorem in Zimbabwe. Thereafter, some recommendations in respect thereof are provided.
Design/methodology/approach
A qualitative research methodology is used in the entire paper.
Findings
It is hoped that the recommendations in the paper will be used by the relevant policymakers to enhance the curbing of insider trading in Zimbabwe.
Research limitations/implications
The paper does not use an empirical research.
Practical implications
It is hoped that the recommendations in this paper will be used by the relevant policymakers to enhance the curbing of insider trading in Zimbabwe.
Social implications
It is hoped that the recommendations in this paper will be used by the relevant policymakers to enhance the curbing of insider trading in Zimbabwe.
Originality/value
This paper is original research on the theoretical aspects of the regulation of insider trading in Zimbabwe.
Keywords
Acknowledgements
This article was supported in part by the National Research Foundation of South Africa (NRF), Grant Number: 112115. Consequently, the author wishes to thank the NRF for its support. I am also very grateful to Dr Pontsho Mokone (Trainee Investigator, Office of the Public Protector, South Africa), for her valuable and insightful comments on the initial drafts of this article. Dr Mokone’s comments were influenced in part by her Doctor of Laws (LLD) Thesis entitled: The Regulation of Insider Trading in Zimbabwe: Proposals for Reform, pp. 53-73.
Citation
Chitimira, H. (2022), "Theoretical aspects of insider trading regulation in Zimbabwe", Journal of Financial Crime, Vol. 29 No. 1, pp. 389-405. https://doi.org/10.1108/JFC-02-2021-0028
Publisher
:Emerald Publishing Limited
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