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

Regulating International Capital markets Regulating the Capital Markets in Zimbabwe

Regulation in Zimbabwe Secondary Markets

Regulatory Structure SECZIM Capital Markets (Secondary )

Regulatory Structure At the realm of regulatory structure of secondary capital markets in Zimbabwe is the Securities & Exchange Commission (SECZim); SECZim: a)Regulates trading and dealing in securities; b)Registers, supervises, and regulates securities exchanges, c)Licence, supervises and regulate licenced capital markets players

The Capital Markets The Zimbabwe Stock Exchange ZSE is the main capital market in Zimbabwe; Established in 1896; It is one of the oldest and most diversified markets which span over a number of sectors in Africa It has two Indices which includes Mining Index (mainly mining companies) and Industrial Index (All companies excluding mining companies) Trades once a day between hrs Currently has 61 companies listed

The Capital Market Players Intermediaries: These are involved in the trade of securities between buyers and sellers. They include Securities Dealing firms (14); Securities dealers (40); Custodians (5), Transfer Secretaries (3), Financial Advisors (20), Asset Managers (16) and Collective Investment Schemes (Unit Trust Funds) (38)

The Capital Market Players Issuers: These are involve in handling issuance of securities such as bonds and ordinary shares. ZSE currently does not trade bonds which ordinary shares dominate issuances. ZSE is currently working of establishing a Bond Market.

The Capital Market Players Investors: These are buyers of securities through investments. They are split between retail and institutional investors. Major institutional investors includes pension fund, insurance and asset management firms.

Primary Capital Market regulation RBZ Banks ( Primary Markets )

Regulatory Structure At the realm of primary capital market is the Reserve Bank of Zimbabwe which is also know as the Central Bank. Created in March 1956 as the Central Bank of the Federation of Rhodesia and Nyasaland to supercede the Central Currency Board. RBZ operate under the RBZ Act Chapter 22: 15 of 1964.

RBZ Functions Monetary policy formulation Issuer of bank notes and counts Custodian of gold and other foreign assets Bankers and advisor to government Licencing of financial institutions that issue new financial securities

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