adminto restore confidence, transparency and its financial agility.
His four-member board that would soon be expanded would give special attention to the digitalisation of the ZSE and the implementation of the Central Securities Depository.
“We are coming in to restore investor confidence on the exchange. We will make sure issues to do with insider trading and money laundering are dealt with and this can only be done through proper corporate governance guidelines,” said Mr Biyam.
The four-member board include Mr Mutasa Dzinotizei, Mr Peters Shonhiwa and Mr Ndodana Mguquka.
A committee of stockbrokers was running the ZSE and there have been serious conflicts with the regulator, the Securities Commission of Zimbabwe on operational issues. SEC had advised the parent Ministry of
Finance to restructure the ZSE which, Minister Tendai Biti described as the “old boys club”.
SEC is empowered to prescribe qualifications for licensed players, register, supervise and regulate securities exchange. However, Mr Biyam said they are engaging all stakeholders to allow the smooth operation of ZSE, which is one of the platforms for corporates to raise funding for recapitalisation as well as the barometer of the country’s economy.
Proper function of the exchange also enables individual investors to make a saving and buy into companies.
Full demutualisation of the ZSE will enhance its financial position as a profit-oriented firm and help it explore income-generating initiatives. Demutualisation will also enable them to pursue joint ventures, improve efficiency, widen shareholder base and have better access to capital to support various interest projects.
Thereafter it would be flexible, with quick decision- making as well as separate interest of users from shareholders and enable it to adapt to the fast changing technology.
Demutualisation refers to a process which a mutual organisation or company is transformed into a publicly traded firm. After demutualisation members give up their rights and take up shares in the private company, which the former member may then trade publicly.
Mr Biyam said the board is working closely with SEC, which was established through an Act of Parliament to provide high levels of investor protection and reduce risk.
SEC also promotes market integrity and investor confidence as well as prevents market manipulation, fraud and financial crimes.
A full-fledged SEC will also ensure transparency in capital and securities markets and promote investor education.
Online Reporter