Business / Companies
Padenga Holdings securities to be dematerialized on 1 July 2015
16 Jun 2015 at 04:40hrs | Views
Pandenga Holdings Limited's securities will be dematerialized and will be cleared and settled on the Central Security Depository (CSD), in an electronic form with effect from Wednesday 1 July 2015.
In a statement to shareholders' Padenga Company Secretary Andrew Lorimer advised shareholders, capital market players and the investment public that Padenga Holdings Limited securities will be cleared and settled on the Central Security Depository (CSD), in an electronic form with effect from Wednesday 1 July 2015.
Dematerialisation of Padenga Holdings Limited securities will commence on Wednesday 24 June 2015. The trades involving Padenga Holdings Limited shares for the period up to Tuesday 30 June 2015 (inclusive) shall continue to trade and settle in the physical form. However all Padenga trades as from Wednesday 1 July 2015 and thereafter shall be cleared and settled through the CSD.
Cottco, CBZ and FBC went live on September 8 2014, with settlements for African Sun Limited, Barclays, Bindura Nickel Corporation, Dairibord, Falgold and Zimplow among others going electronic on October 6 2014.
With between 60 and 70 percent of the trades on the ZSE being by foreigners, the CSD is seen as crucial to attracting more investment to listed companies.
A CSD keeps a computerized register of securities ownership and also registers transfers after shares have been bought, sold or otherwise transferred. It replaces paper share certificates for most shareholders, in a process known as 'dematerialization'. It links to systems for payment and clearance of trades. The previous system saw clearing and settlement done between the stockbrokers on a T+7 schedule, Chengetedzai says it reduces settlement this to T+5. Apparently local retail customers initially found it hard to understand that they must address settlement queries to a custodian, not to their stockbrokers as previously.
Source - Byo24News
