The Securities Commission of Zimbabwe (SECZ) on Thursday accepted bids from two companies shortlisted to set up a Centralised Securities Depository (CSD) for the country.
The commission from April 16 and May 17 this year ran a tender for the project that is expected to commence before the end of the year.
The two companies, namely Chengetedzai Central Depository Company and Zimbabwe Central Depository Company, successfully passed through the SEC’s CSD committee second request for proposals.
SECZ CEO Alban Chirume said the regulatory body had received a total of four bids, two of which have been eliminated.
“The evaluation of the request for proposals will result in the successful bidder being authorised to establish the Central Securities Depository and Settlement System by SECZ,” Chirume said.
The CSD, an electronic platform for securities transfer and trade settlement, would introduce a payment versus delivery system, which would eliminate paper certificates, cut the settlement cycle and lay the foundation for the electronic trading of securities such as stocks and bonds.
The company would operate as a private entity and its clients include securities trading firms, licensed brokers, banks, securities custodial services companies, individual investors and the Zimbabwe Stock Exchage, currently under demutualisation.
“We are running a bit slow, there is going to be an evaluation process,” Chirme said.
“We hope in the next six months the system will be running but people need to be persuaded to do that as some love to see their share certificates in hard copies.”