admin
Oliver Kazunga Business Reporter
WORK to install a Central Securities Depository (CSD) at the Zimbabwe Stock Exchange (ZSE) is still under way with the company implementing the project having missed the September 2013 deadline.The CSD, which is being installed by Chengetedzai Securities Depository, was initially expected to be up and running in the first quarter of last year.
Establishment of the CSD is part of on-going efforts to modernise the local bourse expected to be completed in the first quarter.
In a response to written questions from Business Chronicle, Chengetedzai managing director Campbell Musiwa, however, did not specify why the project had again missed its deadline.
“Chengetedzai has achieved significant progress in terms of sign off and approvals from the regulators as well as the stakeholders. Chengetedzai will publish this information in the Press . . . after formally advising all the participants.
“This will be followed by a series of press statements, addressing among other issues matters raised in your e-mail.”
A securities depository is a financial organisation with a wide range of responsibilities but its core function is holding securities in electronic form, enabling easy transfer of shares during trading.
It is hoped that the CSD would enable the ZSE, which at present is using a manual system involving share certificates, to conduct paperless trading in line with global trends.
The Securities Commission of Zimbabwe (SECZ) has noted with concern that that the present manual system was not transparent and could be manipulated to the disadvantage of investors.
The government gazetted the CSD regulations through Statutory Instrument 63 of 2013 in May 2013 to pave way for the operationalisation of the CSD.
The regulations set out a framework for the registration, supervision and regulation of the CSD, as well as, licensing requirements for depository participants.
Gazetting of the regulations heralds the need for all market players to prepare in terms of capacity building in preparation for implementation of this project.
Online Reporter