THE Supreme Court on Friday upheld the cancellation of Remo Investment Brokers firm licence, but slashed six months from the five-year suspension imposed by the Securities Exchange Commission (SECZ).
VICTORIA MTOMBA BUSINESS REPORTER
The court said the appeal by the first appellant was allowed to the extent that the conviction on a charge contravening Section 50(1) of the Act is set aside and consequent thereto.
“The period of cancellation is reduced to four years and six months. The appeal by the second appellant is dismissed. The appeal of the third and fourth appellant is allowed with costs,” court papers have shown.
The Administrative Court in 2013 upheld the decision by SECZ to suspend Remo Investments Brokers, as the broking firm engaged in illegal activities.
Remo had appealed to the court against the decision by SECZ to cancel its licence and that of its managing director Mohamed Iqbal Mahmed for five years after being found guilty of breaching provisions of the Securities Act.
According to court papers, Remo and Mahmed were cited as first and second appellant. SECZ was the respondent.
“Given the extent of the deviations from the expected standard of operating the registered securities exchange that have been outlined above the court finds that the respondent was justified in opting for cancellation of the first and second appellants’ licences (Remo Investments Brokers and Mohamed Iqbal Mahmed) with provision for re-application after five years if the two would have been adequately rehabilitated,” reads part of the judgment.
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The matter arose after Remo failed to recover the shares it had pledged as security after borrowing close to $2 million from Interfin Securities.
This resulted in Remo seeking the intervention of the Zimbabwe Stock Exchange to pressurise Interfin to return the shares, which then prompted an investigation into the issue.
Proctor and Associates, which was tasked by SECZ to carry out investigations, found out that Remo did not record shares that were in question in the nominees register as required by the Securities Act.
