ZSE reviews listing rules

THE Zimbabwe Stock Exchange is expected to complete the process of reviewing its listing rules by November this year, the Securities Commission of Zimbabwe has said.

In an interview, SECZ chief executive Mr Tafadzwa Chinamo said SECZ called for a review of the rules to enhance clarity and ensure detailed framework of listing rules.

He made the remarks after a Press briefing to announce SECZ's nomination for an award by the Africa Investor Institutional Investment Summit Awards on the 24th of this month.

Among changes to come about after the review of the ZSE's listing rules will be corporate governance issues and term limits for chief executives of listed companies.

Mr Chinamo said the current set of listing rules has been like a draft to be reviewed, which has taken too long to finish hence the directive to fast track the process.

"Some of the listing rules are in conflict with the Companies Act. We told the ZSE to rewrite the listing rules. They have done the initial draft for discussion with stockbrokers, accounting firms, analysts and financial advisors," Mr Chinamo said.

The SECZ boss said the ZSE has indicated that the process to review listing rules would be completed by November this year after which the provisions would be gazetted.

Mr Chinamo said in amending the listing rules the ZSE would also ensure that they do not conflict with the regulatory authority's own requirement for public listed firms.

"The Zimbabwe Stock Exchange knows our (listing) rules, they are the minimum requirements and they can only improve and refine them," the SECZ boss said yesterday.

He said the current set of ZSE listing rules was in conflict with other laws governing publicly listed companies, adding that the listing rules were vague and not specific.

But the review exercise underway will make the listing rules more specific, detailed and ensure the rules dovetail into other laws such as the Companies Act.

Apart from ensuring clarity, the rules will increase knowledge of the extent to which listed companies are bound by regulatory provisions in every transaction they do.

SECZ chairperson Mrs Willia Bonyongwe said Zimbabwe had made significant progress towards a central securities depository, automated trading and attendant rules governing them. The listing rules and CSD rules will soon become law.

But she pointed out that SECZ still has its work cut out as there still are issues about integrity of players', levels of disclosure and domineering majority shareholders.

"We also hope that the issue of the Companies Act, commercial crimes and penalties be looked into so that people don't get away with criminal behaviour," said Mrs Bonyongwe.

These kind of refinements to capital markets systems have not gone unnoticed with SECZ nominated for Africa Investor Institutional Investment Summit awards in the USA.

SECZ was nominated for the most innovative capital markets regulatory category award and will battle it out with seven other regulators from the continent for the top award.

"It means there is a lot of interest in Zimbabwe and we have always said that there are a lot of things companies should do about system structures. There also are things the ZSE should do such as building good and strong institutions," she said.

She said there were many things SECZ had done as a regulator that show that many good things were happening in Zimbabwe's capital markets despite lack of resources, which the Africa Investor had since noted.

These include its oversight role and ability to pick out irregularities and correcting them even without the benefit of convenience brought about by automated systems.

Africa Investor is a top international investment research and communications group publishing international magazines for Africa investment decision- makers. It maintains the Africa Investor 40 investors' index and hosts Ai index Series Summit awards.