A: The Zimbabwe Stock Exchange Limited (‘ZSE’) is a licensed securities exchange in terms of the Securities and Exchange Act (24:25), with a core mandate to facilitate long term capital raising through listing of securities as well as offering secondary market securities trading and issuer regulation services.
A: The ZSE is regulated by the Securities and Exchange Commission of Zimbabwe and efforts are underway to adopt a self-regulation structure.
A: No, the Zimbabwe Stock Exchange Limited (‘ZSE’) is owned by different shareholders.
The ZSE uses Twitter, Facebook, LinkedIn and Youtube, with the following handles
Twitter: @ZSE_ZWA: A stock exchange is a marketplace where financial securities are bought and sold.
A: Financial securities represent a claim on the assets of the issuer and such claims can be ownership (as represented by equity securities) or creditor (represented by debt securities).
A: A share is a unit of ownership. It is also referred to as equity. When one purchases a share in a company he/she becomes a part owner in that company. He/she will be entitled to certain rights e.g. dividend and voting.
A: Primary market offerings of securities occur when securities are offered for sale for the very first time.
A: Secondary market trading of securities occurs when securities that have been bought through a primary market offering are traded on the ZSE. In the secondary market, an investor buys or sells securities to other investors.
A: Each security on the ZSE is assigned an International Security Identification Number (ISIN) which identifies each security uniquely.
A: The withholding tax on dividends is 10%.
A: Follow updates on corporate announcements on the ZSE website. Dividend notices are also published in the press.
A: An ETF is a listed investment product that tracks the performance of a basket of shares, bonds or commodities. ETFs can be bought and sold just like Ordinary Shares. The difference is that one ETF gives you exposure to more than one security or security type.
A: A stockbroker is an agent licensed to buy and sell securities on an exchange on behalf of investors. To start the process of investing on the ZSE, you need to open a trading account with a ZSE registered stockbroker.
A: To find a stockbroker, you can visit the stockbrokers tab on this site www.zse.co.zw and the ZSE does not recommend one broker over the other but advises investors to do a comparison depending on one’s needs and investment goals.
A: All securities on the ZSE can be bought or sold through a registered stockbroker. A stockbroker acts as your agent in buying or selling securities. They also provide professional financial advice.
A: You open a trading account by completing and signing account opening forms at your preferred stockbroking firm. The stockbroker will require:
a) For individualsA: There are transaction costs which are charged on each and every purchase and sale transaction and the charges are currently as follows:
Equities and ETFs |
||
Buying |
Selling |
|
| Brokers Commission | 0.92% | 0.92% |
| VAT (14.5% of brokerage) | 0.1334% | 0.1334% |
| CSD Levy | 0.10% | 0.10% |
| Stamp Duty | 0.25% | Nil |
| ZSE Levy | 0.10% | 0.10% |
| SECZ Levy | 0.16% | 0.16% |
| Investor Protection Levy | 0.025% | 0.025% |
| Capital Gains tax | Nil | 1% |
| Total | 1.6884% | 2.4384% |
Grand Total |
4.1268% |
|
|
|
||
Debt Securities |
||
Buying |
Selling |
|
| Brokers Commission | 0.065% | 0.065% |
| VAT (14.5% of brokerage) | 0.009425% | 0.009425% |
| CSD Levy | 0.01% | 0.01% |
| ZSE Levy | 0.012% | 0.012% |
| SECZ Levy | 0.01% | 0.01% |
| Investor Protection Levy | 0.003% | 0.003% |
| Total | 0.109425% | 0.109425% |
Grand Total |
0.21885% |
A: Capital gains withholding tax on the sale of listed shares is 1% of the sale proceeds.
A: To learn about investing and the investing process, you can enroll in the free Investment 101 course offered by the ZSE accessible at www.zsetraining.co.zw. You can also download the ZSE Investment guide available on the ZSE website (www.zse.co.zw)
We also recommend you contact a registered stockbroker or financial advisor. For a list of the registered stockbrokers visit www.zse.co.zw
There are also many online resources dedicated to shareholder and investor education. Here are some investor education resources online:-A: No, all trades on ZSE are required to be prefunded.
A: A person from any income level, who has some amount of surplus funds available no matter how small, may decide to buy shares on ZSE.
A: View Only Terminals (“VOTs”) are viewing rights to ZSE’s live trading on the Automated Trading System (“ATS”).
A: The ZSE grants a client a username and password which will enable them to log in to the ATS and enable them to “watch” trading during normal market hours.
A: VOT users will still need to place their buy or sell orders through their stockbrokers.
A: Prospective clients are required to complete an application form (ZSE PSF 1) and submit it to the ZSE by email to [email protected]. A free trial period of 21 days is applicable to corporate clients only, and thereafter they will need to pay the relevant VOT fees if they opt to subscribe for the full service.
A: A normal desktop/laptop with standard operating software and reasonably fast internet connectivity will be sufficient. At a minimum the following IT requirements apply:
a) Network Requirements
● Internet Connection – A minimum of 1Mbps
b) Computer/Laptop Requirements
● RAM – 2 GB or betterA: VOT data fees are specified in the ZSE Market Data Price List which is available on the ZSE website (www.zse.co.zw).
A: Short selling is not permitted on the ZSE.
A: The settlement cycle is T+3, which means that for example if a trade takes place on Monday, it gets settled on Thursday.
A: Margin trading and securities lending are not available on the ZSE.
A: Failed trades are reported to the Exchange and appropriate action is taken based on the period for which the deal has been outstanding.
A: Market participants (stockbrokers) are obliged to issue contract notes within 24 hours of executing a trade.
A: Listing enables a company to raise capital (the funds it needs to operate and grow). Listing can also be done to enhance the company’s public profile with customers, suppliers, the media and investors. As a result, more business opportunities become available to the company.
A: The ZSE website has information on all the listed companies under the Listed Securities tab.
A: The annual reports and other releases of the listed companies are available on the ZSE website (www.zse.co.zw). To access the documents, a client can click on the individual company, or find them on the company’s website.
A: Yes, the ZSE offers data services. For a list of the available data services email [email protected]
A: No, the ZSE reported market capitalization of dual listed companies include shares that are in the local register only
A: Yes, as a potential investor you are encouraged to attend company briefings, subject to the attendance policy by the concerned issuer.
A: The market has the following investor protection mechanisms:-
Professional Insurance PoliciesA: There are no restrictions on repatriation of capital and dividends. Foreign currency shortages have however been encountered in the past making remittances difficult to effect on time.
A: The limit for an individual foreign investor is 15% of total issued share capital whilst the aggregate limit for foreign investors per counter is 49%. Foreign investors may exceed these thresholds subject to getting prior approval from the Reserve Bank of Zimbabwe (RBZ).
The Zimbabwean capital market is regulated by the Securities and Exchange Commission of Zimbabwe (“SECZ”).
A: The Securities and Exchange Act (24:25).
Information
ZSE Rules and regulationOther Links
Securities and Exchange Commission of Zimbabwe (SECZ)