OLD Mutual Zimbabwe (Omzil) has listed on the alternative trading platform for Financial Securities Exchange (Finsec), becoming the first company to make such a move in the country.
BY VICTORIA MTOMBA
Speaking at the listing of the company yesterday, Securities Exchange Commission of Zimbabwe (SECZ) chief executive officer, Tafadzwa Chinamo said the introduction of alternative trading platforms is designed to broaden and deepen the capital market by introducing an array of securities that were previously excluded from formal trading in the shadows.
“ATPs are, by their nature, also designed to demystify the notion that securities trading is complicated and meant for the elite. The coming on board of Finsec as an alternative trading platform is, therefore, expected to see an increased participation of different classes of investors including first time traders,” he said.
“This is part of the capital markets contribution towards national financial inclusion strategy, which seeks to include all citizens in the formal financial channels in a cost-effective manner.”
Finsec chairperson, Rachel Kupara said this was their inaugural admission since they were licensed on September 27. “Finsec harnesses and facilitates electronic trading of a wide variety of securities by formalising marginalised market segments and bringing all alternative trading activities onto a central organised market place. Finsec proudly welcomes Omzil on to the first ever alternative trading platform in Zimbabwe,” she said.
Cabs managing director, Simon Hammond said the initiative had to go through the Ministry of Finance, which sanctioned the proposed trading and settlement rules that mandated SECZ to develop the framework for the establishment of an alternative investment market.
“The Old Mutual road to empowerment started in 2011, when we signed an agreement with the government that resulted in 25% of Omzil shares being awarded or acquired by indigenous entities including client pensioners employees management and strategic partners,” he said.
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“The issued and fully paid B-class shares in the capital of the company were set aside for grant and allocation to eligible participants, who include general employees 11%, managerial employees 3,19%, client pensioners 8%,strategic partners 3,5% and Kurera/Ukondla Youth 2,5%.”
Hammond said the agreement was followed by the setting up of the over the counter trading platform in 2013.
The platform was formed to provide liquidity for the issued and fully paid B-class shares in the capital of Omzil, while ensuring continual compliance with the provisions of the indigenisation and Economic Empowerment General Regulations 2010.
