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NewsDay

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New Africa Securities, Renaissance Securities licences cancelled

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THE Securities Commission of Zimbabwe (SECZ) has cancelled the licences of New Africa

THE Securities Commission of Zimbabwe (SECZ) has cancelled the licences of New Africa Business Reporter

Securities and Renaissance Securities after the stock brokers failed to meet mandatory regulatory requirements.

New Africa was found not to be adequately capitalised while Renaissance Securities, whose licence was cancelled in January, has since been placed under provisional liquidation.

Stockbrokers are required to have at least $150 000 in order to be licenced.

SECZ chief executive officer Tafadzwa Chinamo in a statement yesterday said members of the public who had queries regarding their share certificates held by New Africa Securities should approach the Zimbabwe Stock Exchange.

“The Securities Commission of Zimbabwe also advises that the licence of New Africa Securities was cancelled with effect from the 5th of March 2013 in terms of Section 48(1) (c) of the Securities Act,” he said.

Under the section, the SECZ can cancel a stockbrokers licence if the commission believes that the holders have ceased operations or have been deemed to have breached provisions of the Securities Act.

“Members of the public who had invested in shares with Renaissance are hereby urged to approach the liquidator Phibion Gwatidzo of Baker Tilly Gwatidzo Chartered accountants for the purposes of collecting share certificates and facilitating registration of shares that are still registered under Renaissance into individual shareholder’s name,” Chinamo said.

Stockbroking is the process of investing shares on the stock market individually or through a broker.

Zimbabwe has 19 stockbroking firms with six having been suspended so far.

Some of the suspended stockbroking firms include Interfin, Remo and Mast Kingdom decided not to renew its operating licence.

A local analyst said the cancellation of the licences was an indication that the stockbroking firms were in a difficult situation largely as a result of the prevailing liquidity challenges ravaging the economy.