THE Securities Commission of Zimbabwe (SEC) is carrying out a test run on the Central Securities Depository (CSD) after the local firm that won the tender to install the system completed a technical implementation process.
Business Reporter
In 2010, Chengetedzai Depository Company won the tender to run the country’s first CSD.
In an interview SEC chief executive officer Tafadzwa Chinamo said progress has been made towards the implementation of the system by CSD.
“For us it’s a process, this is the first CSD that we have had as a country so we want to make sure that it would be a good system. This week my team is going to test the system. The whole market is also testing the system as well. We are saying it should not be perfect, but perfection should come with time,” he said.
Chengetedzai chief executive officer Campbell Musiwa said the company was ready technically, but was waiting for regulatory approval.
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Musiwa said the company did not have the timeframe and indications on when the regulator will give them the go ahead to run the system.
“Technically we are ready, but from the regulatory point of view we are yet to be given the licence, but we have done everything else that we were supposed to do. The issue of pricing is one of the major issues as the revenue is coming from the same source which is the Zimbabwe Stock Exchange. The issue needs to be finalised,” Musiwa 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.
CSD will run concurrently with the automated trading system of the bourse. Recently, ZSE shortlisted four companies for the supply and installation of the Automated Trading System.