The Securities Commission of Zimbabwe (SECZ) says it is not happy with the Zimbabwe Stock Exchange (ZSE) as it has failed to implement reforms it had recommended.
SECZ chairperson Willia Bonyongwe said the commission had moved as a regulator to ensure best practices and Statutory Instrument 100/2010 was introduced to the market in June, but nothing had been done to date with regard to reforms.
“We are frustrated with the pace of things at ZSE. We told them to automate, put up the central depository and to tell brokers what to do, but they have not done that,” said Bonyongwe.
SECZ called for a meeting on Monday this week to discuss unclear admission procedures of new members, archaic trading, clearing and settlements systems.
“Summing up all issues, we stated it was no wonder viability of players in the industry was under threat. Liquidity is low and income for most firms falls short of expenses,” she said.
SECZ failed to meet its September deadline for automation of the ZSE as a result of delays in the appointment of the commission’s board and setting up of shareholding in the system.
Bonyongwe said current manual systems were not transparent, were unfair and could be manipulated, but investors wanted to monitor trade and be treated fairly.
In October ZSE chief executive officer Emmanuel Munyukwi said the local bourse was waiting for the Finance ministry to finalise the issue of shareholding structure.
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“We are looking forward to feedback from the ministry as they have sent the papers to Cabinet,” Munyukwi said.
