CHENGETEDZAI Depository Company, a local business company that won the tender to run the country’s first ever Central Securities Depository (CSD) in 2010, will be running the platform by September this year following the installations of core hardware, an official from the company has said.
By Victoria Mtomba
Chengetedzai chief executive officer Cable Musiiwa yesterday told NewsDay that progress hadbeen made towards the automation of the Zimbabwe Stock Exchange and what was only outstanding was the training of stakeholders.
“We have installed the system hardware and established a data centre and we have made the specifications of the blueprint system. We are now waiting for the training of the users that include our staff and stockbrokers and we will do that next month and we will go live in September,” he said.
Government entities, which include the Infrastructure Development Bank, ZB Holdings and NSSA, will hold 51% of the CSD firm. A CSD is an organisation holding securities either in certificated or uncertificated (dematerialised) form to enable book entry transfer of securities.
Zimbabwe has been failing to automate since 2011 due to delays in the appointment of the commission’s board and the setting-up of the shareholding.
That means the local bourse has been using manual systems that are not transparent and could be manipulated as trades could not be monitored.
Currently, clearance and settlement is done between stockbrokers with payment against delivery of physical scrip on a T+7 calendar day basis.
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In May 2010 government gazetted a new statutory instrument (SI) giving legal effect to the setting-up of the country’s first CSD following delays that have slowed down changes as capital markets embark on far-reaching reforms.
The CSD will maintain insurance policies, set up a $500 000 guarantee fund as well as provide safe custody of certificated securities.
Participants in the CSD, according to the SI, may include holders of securities custodial licences, brokerage firms, transfer securities and the Reserve Bank of Zimbabwe.