THREE counters from the Zimbabwe Stock Exchange (ZSE) will today go live through the Central Depository System (CSD) enabling them to transact electronically, an official has said.
VICTORIA MTOMBA BUSINESS REPORTER
Chengetedzayi Depository chief executive officer Campbell Musiwa named the three counters as FBC, CBZ and Cottco.
“We will start Monday (today) and the counters will run for two weeks before the account opening. We will be doing public announcements. The counters will go live on September 8.This opening for the counters is in stages catering for the preparatory work,” Musiwa said.
He said when the counters go live next month, while trades would be done by brokers, transactions will be electronic.
Musiwa said through the testing stage investors will be able to open accounts and have an opportunity to deposit shares on the electronic platform. He said this will see trade from the ZSE being made through the CSD.
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The CSD went live last month and the ZSE and Securities Exchange Commission of Zimbabwe (SECZ), among others — were operating on it.
A CSD is a system that maintains an electronic register of securities or financial instruments such as shares, bonds and other fixed income instruments and provides an efficient settlement process.
The records are kept in an electronic form and transfer is by way of electronic book entry.
Securities Exchange Commission of Zimbabwe approved the establishment of a CSD to be run by Chengetedzai Depository Company under a one-year licensing deal. Chengetedzai won the tender in 2010 and it has taken long for the system to be operational due to various challenges.
Government entities, which include the Infrastructure Development Bank, ZB Holdings and the National Social Security Authority, will hold 51% of the CSD firm.