Global Financial Regulatory Framework Regulating International Capital Market Masters in Accountancy (MACC508)

Regulating International Capital markets Role of the Zimbabwe Stock Exchange

Background of ZSE First stock exchange in Zimbabwe opened in 1896 on success of mining operations; Operated for 6 years before other exchanges opened in Mutare and Gweru; The exchange of closed briefly during the World War until a new stock exchange was opened in 1946; A second exchange was opened in Salisbury in 1951; Zimbabwe has a developed capital market.

Background of ZSE ZSE was then established through a statutory Act in 1974 through the Zimbabwe Stock Exchange Act; Exchanges was operated by members (Stock Brokers; The exchange was self regulatory; In 2004, Securities Act was promulgated to repeal the ZSE Act and become operational in 2008; ZSE & SEC Act operated under Ministry of Finance;

Role of ZSE The Exchange serves 3 critical functions: 1.Critical Link Between companies that need to set up new businesses or expand; and investors that have access fund seeking to invest.

Role of ZSE 2. Market Regulator Provide regulatory function in the process of buy and selling of shares. The trading process is driven by demand and supply in the market.

Role of ZSE 3. Market Integrity and Fairness Providing a properly constituted and regulated environment for trading of securities; Ensure that there is fairness among stock market players.

Key Role in Summary Supervise and monitor the trading process to ensure transparency and fairness in the market; Provide a framework through Rules and Regulations governing stock markets transactions.

Who does ZSE regulate Members of the Exchange who are the companies listed on the Exchange.

Information Source: exchange.com/about/about-us/

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