By Wallace Mawire.
Zimbabwe. (News of The South) – Zimbabwe’s first Central Securities Depository (CSD) company,Chengetedzai Depository Company Limited will be officially launched on Monday September 8 2014, according to one of the investors.
The Securities and Exchange Commission of Zimbabwe (SECZIM) has approved the
establishment of a securities depository by Chengetedzai Depository company
Limited in terms of sections 68-86 of the Securities and Exchange Act (Chapter 24-25) and the Securities (Central Securities Depositories) Rules of 2013,
according to Tafadzwa Chinamo, Chief Executive Officer of the SECZIM.
According to Chinamo, Chengetedzai Depository Company Limited (CDC) is
Zimbabwe’s first central securities depository (CSD).
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 form and transfer is by way of electronic book entry.
Chinamo added that the CSD shall replace physical paper certificates and proof of
ownership and shareholding shall be in the form of statements of share accounts in terms of section 92 of the Securities and Exchange Act.
Chinamo recently revealed that Chengetedzai has been registered to
start engaging the market.
“We expect that the company will become more visible in the next few weeks.They are currently running system trial operations which began at the end ofJune
and ran up to July 2014,” Chinamo said.
He also added that the Zimbabwe Stock Exchange (ZSE) automation project is expected to be running by the end of the year.
ZSE Chairperson, Eve Gadzikwa said that they have engaged consultants from outside the country who are helping with the automation project which is expected to change the way of operations for the countries single and oldest stock exchange project.
“It has been a long way and we hope soon we will change the way of conducting business at the stock exchange.We also hope that the automation project will bring transparency and improve accountability for the stock exchange,” Gadzikwa said.
She added that the exchange company has visited other countries to assess. Ways of operations to address current.
Challenges being faced.
She also revealed that they had engaged a vendor from out of the country to
help on the automation project.
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