The Zambian continuous disclosure legal regime—adequate to ensure efficient disclosure?

Continuous disclosure of price-sensitive information, serves to ensure accuracy in the price of the securities of an issuer and credit ratings of those securities and the issuer, transparency and fair-play in securities markets, and as such, critical to investor confidence and the overall integrity of the market. The study assesses the legal framework for public distribution of securities locally and across international borders so as to establish whether or not it has provided adequate incentives for efficient continuous disclosure of material information which is not generally available by listed issuers at minimum cost. The study employs the doctrinal approach to evaluating legal rules. The main findings of the study were that (a)the law does not impose a stream-lined continuous disclosure obligation on listed issuers (b) the law does not exempt listed issuers from continuous disclosure of (i) generally-available material information, (ii) confidential information, and (iii) detrimental information, (c) the law does not provide for mutual recognition of continuous disclosure documents approved in home country of the issuer, (d)the law does not provide for civil remedies or compensation for loss occasioned by breach the continuous disclosure obligation. The article makes necessary recommendations for law reform as a possible way of remedying these shortcomings in the law.