HARARE,– Zimbabwe’s Central Securities Depository firm says the remaining 20 listed companies will migrate to the new platform in March, paving way for the automation of the local bourse.
Currently, 41 out of the 61 counters trading on the ZSE are on the new settlement platform since Chengetedzai Depository Company (CDC) commenced the migration in September last year but missed the December deadline to complete the process.
Last March, the ZSE signed a contract for the supply and installation of the Capizar Automated Trading System by Infotech Middle East FZ LLC. Chengetedzai’s failure to complete the migration of shares delayed the process to link the ATS to the CSD, which had been pencilled to be completed by February.
On Monday, Chengetedzai said the dematerialisation of the remaining counters will commence on February 16, adding that trades involving such counters will continue in physical form until February 27.
“Chengetedzayi Depository Company would like to advise the capital market that the remaining issuers (listed companies on the Zimbabwe Stock Exchange) who are not on the CSD will be boarded on March 2 2015,” CDC said in a notice on Monday.
“Most listed entities that had missed the December 2014 deadline have since complied with the CSD boarding requirements. The remaining issuers are being engaged to ensure that the necessary resolutions are in place before on boarding.”
The CSD system maintains securities in electronic format in investors’ accounts, allowing their transfer from one party to the other through an automated book entry. It is operating under a custodian model as opposed to the retail model where investors have a direct interface with brokers.
Under the custodian model, investors will have a choice of either going directly through a custodian for the purchase of shares through a broker or through Chengetedzai. – The Source