Chronicle Editor
Judith Phiri, Business Reporter
THE Securities and Exchange Commission of Zimbabwe (SECZ) has said the unclaimed shares portfolio valuation as at September 30, 2023 stood at ZWL$13.63 billion and US$667,568 and has proposed an all-media campaign to raise awareness and activate claims.
The accumulated unclaimed shares are a result of dreary data integrity in the capital markets industry. Unclaimed shares are shares bearing share certificates that are not in the possession of their respective investors.
In its capital market fourth quarterly newsletter, SECZ said there would be an interrogation of unclaimed portfolios and the identification of claims by the owners of shares.
“The unclaimed shares portfolio valuation as at 30 September 2023 stood at ZWL$13.63 billion and US$667,568. In 2024, the Investor Protection Fund (IPF) in collaboration with the Commission, intends to focus on the work of a committee made up of independent stockbrokers and stockbroking firms, which had commenced the process of allocation and interrogation of unclaimed portfolios to arrive at a Know Your Client (KYC) position which promotes the identification of and claims by the owners of shares in this portfolio.”
The Commission said publicity would be key and the IPF proposes to fund a nationwide all-media campaign to raise awareness and activate claims.
It has been noted that both the Chengetedzai Depository Company (CDC), a limited liability company, and the Zimbabwe Stock Exchange (ZSE) Central Securities Depository, which commenced its central securities depository operations in November 2021, are the custodians of the portfolio of shares.
Established in 2010, CDC holds the unclaimed shares and investors must go through it as the custodian of the unclaimed shares portfolio, in order to claim their shares.
Share certificates can only be picked up by their respective owners or appointees with the general power of attorney after presenting adequate and acceptable proof of ownership.
Meanwhile, SECZ said the IPF shed 6.57 percent to ZWL$20.48 billion from ZWL$21.92 billion recorded in the prior quarter ending 30 June 2023 and as at 30 September 2023, listed equites’ market value decreased by 10 percent to ZWL$11.82 billion from ZWL$15.00 billion recorded in the prior quarter.
The IPF is a creation of SECZ and was established in 2010, initially in terms of Section 4(1)(a) of the original Securities Act [Chapter 24:25] read with Clause 8 of the 1st Schedule and Clause 2 of Part II of the 2nd Schedule of Statutory Instrument (S.I) 100 of 2010.
At inception, the Fund was under the management of a Board of Trustees and was entirely under the purview of SECZ until the 30th of August 2013 when the Securities Amendment Act (Number 2) of 2013 became law establishing the Fund as a separate legal entity managed by a Board of Directors (Board).
Sections 86B and 86C of the Securities Amendment Act (Number 2) of 2013 established the Fund and the Board, respectively.
For the period under review, the commission said the capital market sector remained resilient as measured by Securities Market Intermediaries’ (SMIs) ability to maintain adequate capital and profitability.
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