ZSE registration stalls secondary stock market, bond market

THE established of a secondary stock market for small and medium scale companies, including the bond, has been stalled by the delays of the Zimbabwe Stock Exchange (ZSE) to register with its capital market regulator, the Securities Exchange Commission of Zimbabwe(SecZim).

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Tafadzwa Chinamo

Tafadzwa Chinamo

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ZSE was recently transformed into a private company through a demutualization process that resulted in Government holding 32 percent and stock holders having the remainder.

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SecZim chief executive officer Mr Tafadzwa Chinamo, told The Sunday Mail Business on Wednesday that the stock market will first complete the private company registration process in line with the Securities Exchange Act.

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The Act requires all exchanges to demutualise (shareholder-owned) and be registered as private companies.

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“We have said why not register as an exchange first, because they have not formalised the registration process yet,” said Mr Chinamo, in an interview Wednesday.

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“…When we have the fully registered ZSE, they can then bring in other products. It is better than to bring in new products before we even do the basics.”

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Mr Chinhamo said the ZSE has submitted the listing rules for the proposed secondary and bond exchanges, but they could not be ratified before the bourse finalised its registration.

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ZSE is planning to launch the two new exchanges as a part of reforms to deepen Zimbabwe’s capital markets.

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According to the ZSE chief executive officer, Mr Alban Chirume, the debt market is expected to come established before the end of the year.