Securities Markets and Their Regulation in Zambia: A New Dawn or a Rebranding of the Old Norms?

Authors

DOI:

https://doi.org/10.17159/1727-3781/2024/v27i0a15427

Keywords:

Capital markets operator, clearing and settlement agencies, financial integrity, securities exchange, securities market

Abstract

Securities markets are a barometer for the economic progression of any country. The quest to harness the maximum benefits that such markets afford has led governments to enact specific legislation and develop appropriate policies. Despite enacting legislation in 1970, it was only in 1993 that the Zambian securities market was established. Simultaneously, the Securities Act 1993 was also enacted. However, it was replete with shortcomings, leading to its repeal and replacement by the Securities Act 2016 (amended by the Securities (Amendment) Act 21 of 2022; hereinafter the Securities Act 2016 as amended). The Securities Act 2016 as amended has for the most part been hailed as a progressive piece of legislation that has incorporated global best practices aimed at enhancing the securities market. There is optimism that the Securities Act 2016 as amended has breathed new life into the securities industry which was seemingly ailing and on life support. It remains questionable, however, whether the Securities Act 2016 as amended enhances the performance of the securities market by effectively fostering fair and efficient trading and ensuring financial integrity, or if it simply reiterates the problems of its predecessor or worse still creates new challenges.

In this article the author critically assesses the Securities Act 2016 as amended to ascertain the extent to which it conforms to the IOSCO Principles 2017 and the practices of other countries such as Kenya, whose Capital Markets Act Chapter 485 offers greater clarity.

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Author Biography

  • Chipasha Mulenga, University of Lusaka

    Executive Dean, School of Law

References

Bibliography

Literature

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Legislation

Kenya

Capital Markets Act Chapter 485

Zambia

Accountants Act 13 of 2008

Securities Act 1993

Securities Act 41 of 2016

Securities (Amendment) Act 21 of 2022

Government publications

Kenya

Capital Markets Act (Collective Investment Schemes) Regulations, 2001

Zambia

Securities (Collective Investment Schemes) Rules SI 61 of 1993

Securities (Internal Control Reporting Framework for Issuers of Registered Securities) Guidelines, 2019

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Law Insider date unknown Supervisory Action Definition https://www.lawinsider.com/dictionary/supervisory-action accessed 14 November 2023

Legal Information Institute date unknown Securities Law History https://www.law.cornell.edu/wex/securities_law_history accessed 25 January 2024

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gov.zm/sites/default/files/documents/committee_reports/Report%20on%20the%20Securities%20%

Amendment%29%2C%20N.A.B.%20No.%2023%20of%202022.pdf accessed 25 January 2024

Shilts RA 2012 Issues Related to Regulatory Oversight of Financial Futures Markets https://web-archive.oecd.org/2012-06-15/160626-2756158.pdf accessed 25 January 2024

Published

10-04-2024

Issue

Section

Articles

How to Cite

Mulenga, C. (2024). Securities Markets and Their Regulation in Zambia: A New Dawn or a Rebranding of the Old Norms?. Potchefstroom Electronic Law Journal, 27, (Published on 10 April 2024 ) pp 1-34. https://doi.org/10.17159/1727-3781/2024/v27i0a15427

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