Renaissance Securities, creditors meet

last month cancelled Renaissance Securities and New Africa’s licences after the firms failed to raise the US$150 000 regulatory minimum capital.
The first meeting of the members and creditors has been scheduled for May 15, 3013 and those owed by Renaissance Securities Limited have been advised to collect, from the liquidator, and fill in “proof of claim” forms. Members of the public who invested in shares through Renaissance Securities were advised to approach the liquidator, Mr Phibion Gwatidzo of Baker Tilly Gwatidzo Chartered Accountants, to collect their share certificates.

“Baker Tilly Gwatidzo is reviewing the books and records of the company in preparation of the first meeting of the creditors and members to be held in Court C at the High Court,” Mr Gwatidzo said.

Mr Tafadzwa Chinamo, SECZ chief executive, last month said after the cancellation of its licence by the commission, Renaissance Securities would be placed under provisional liquidation.

Mr Chinamo had earlier directed Renaissance shareholders to facilitate the registration of shares still registered under Renaissance Nominees into individual shareholders’ names. The cancellation of Renaissance Securities was revoked, together with that of New Africa Securities, once one of the biggest brokerage firms on the ZSE, after it also failed to raise the requisite capital.

Several Zimbabwean stockbrokers have been struggling due to the prevailing liquidity crisis, with depressed foreign investor participation. The SECZ is mulling reducing the number of brokerage firms.

This year, Kingdom Stockbrokers voluntarily surrendered its licence, citing viability concerns emanating from low business. Last year, Interfin Securities’ licence was revoked because it contravened the provisions of the Securities Act by carrying out activities not authorised in terms of the securities dealing firm licence. The firm was deemed to have lent money to third parties.

SECZ was established through an Act of Parliament to regulate capital markets through, among other functions, providing high levels of investor protection, reducing systemic risk, regulating trading and dealing in securities and registering, supervising and regulating securities exchanges.

It also licences and supervises licensed persons to ensure high standards of professionalism and integrity and encourage the development of free, fair and orderly capital and securities markets in Zimbabwe.

SECZ recently advised members of the public that all share certificates previously under the custody of securities’ firms not collected were transferred to licensed custodians.