Juridical Tribune Volume 10, Issue 1, March 2020 131
for the purposes of this article, the adequacy of the Zimbabwean statutory
prohibition on market manipulation will be examined. Accordingly, selected key
elements, types, examples, penalties and definitional aspects of the market
manipulation offence under the Securities Act 2004 are discussed. This is done to
unpack and examine the adequacy of the Securities Act 2004 in relation to the
combating of market manipulation in the Zimbabwean financial markets. It is
submitted that financial markets must consistently reflect the genuine prices and
value of the securities and financial instruments.6 Thus, the Zimbabwean financial
markets must be free from market manipulation to enable them to promote and
truly reflect the natural forces of supply and demand for the relevant securities and
financial instruments.7 Robust enforcement of the anti-money laundering laws
could curb market manipulation, market rigging and other illicit activities in the
Zimbabwean financial markets.8 This could also enable the Zimbabwean financial
markets to promote market integrity, investor protection and public investor
The provisions of the Securities Amendment Act10 that were enacted to,
inter alia, enhance the effectiveness of the Securities Exchange Commission of
Zimbabwe (SECZ) and extend its powers to increase investor protection are also
discussed.11 This is done to explore the flaws in the current Zimbabwean anti-
market manipulation statutory regulatory framework. In this regard, possible
measures that could be utilised to enhance the combating of market manipulation in
Zimbabwe are provided. The adequate regulation and enforcement of market
manipulation laws will give rise to fair and efficient financial markets.
Accordingly, it is hoped that the recommendations enumerated in this article will
enable policy makers to develop optimal regulatory measures that promote investor
protection and reduce systematic risk by effectively combating market
manipulation in the Zimbabwean financial markets.12
2. The definitional aspects
2.1 The definition of market abuse
Like the approach in South Africa,13 Namibia, Australia, the United States
of America (USA), the United Kingdom (UK)14 and many others, the term “market
6 Latimer, 1999, Asia Pacific Law Review, pp. 247-251.
7 Ibid, pp. 247-251.
8 Malaysian Securities Commission, Securities Commission Annual Report, 1997, 160; Davis Professional
Investor Rules 10-216.
9 Davis, Professional Investor Rules, pp. 10-216; Chitimira, 2016, Journal of Corporate and Commercial
Law and Practice, pp. 24-25.
10 2 of 2013 (Amendment Act), see s 22.
11 Nhavira, Mudzonga and Mugocha, 2013 Zimbabwe Economic Policy Analysis and Research Unit,
12 Ibid; Fisher et al, The Law of Investor Protection, p. 278-736, for related discussion.
13 Ss 78; 80; 81 & 82 of th e Financial Markets Act 19 of 2012 (Financial Markets Act); see related
comments by Chitimira, 2014 Obiter, pp. 254-271.