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ELECTRONIC trading on the Zimbabwe Stock Exchange (ZSE) commences next month with three counters initially taking part in the historic trade. The company responsible for the project, Chengetedzai Depository Chengetedzai said on Monday three listed companies, CBZ Holdings, Cottco Holdings and FBC Holdings would be the first counters to trade electronically on September 8.
Zimbabwe has in the past five years been slowly moving towards shifting trade from the old paper format to the Central Securities Depository (CSD), whose operations were approved by the Securities and Exchange Commission of Zimbabwe (SECZ).
The (CSD),which in line with international best practice, is a system where investments are kept in electronic form for ease of trading and safe keeping and replaces the paper certificates that are used at the moment.
“Chengetedzai Depository Company Limited would like to advise all capital markets players, issuers of securities and the investing public that the necessary regulatory approves commence the Central Securities Depository (CSD) operation have been granted said the company in a market update.
“In this regard, CDLCL is ready to commence the opening of investor accounts and dematerialisation (migration from paper based title to electronic securities) of approved securities in preparation for the trading of electronic based securities.”
Chengetedzai, which was awarded the tender to establish the CSD in 2010, has previously said the new system will eliminate various market risks and enhance market efficiency.
The company urged the investment public to open securities accounts through registered custodians, who include banks, from August 25 and deposit their securities in the accounts.
Besides the CSD, the ZSE is also working on the installation of an automated trading system, which will allow brokers to trade away from the stock exchange as well as cut on fraudulent sale of nonexistent stock. – New Ziana.
Online Reporter