Who regulates the capital markets in Zimbabwe?
The Securities Commission of Zimbabwe is the capital markets regulator.
Is the ZSE a registered or a self regulatory organisation?
The ZSE is a Registered Exchange with the Securities Commission of Zimbabwe and in the efforts are underway to adopt a self-regulation structure.
What legislation affects Zimbabwe’s capital markets?
The following are various pieces of legislation which investors should be aware of as they affect securities markets (directly or indirectly) but are not administered by the commission:
- Banking Act (Chapter 24:20)
- Bank Use Promotion and Suppression of Money Laundering Act (Chapter 24:24)
- Building Societies Act (Chapter 24:01)
- Co-operative Societies Act (Chapter 24:05)
- Collective Investments Schemes Act (Chapter 24: 19)
- Companies Act (Chapter 24:03)
- Export and Credit Reinsurance Act (Chapter 24:06)
- Insurance Act (Chapter 24: 07)
- Insurance and Pensions Commission Act ( Chapter 24: 21)
- National Payment Systems Act (Chapter 24:23)
- Pension and Provident Funds Act (Chapter 24: 09)
- People’s Own Savings Bank Act ( Chapter 24:10)
- Private Business Corporations Act (Chapter 24:11)
- Small Enterprises Development Corporation Act (Chapter 24: 12)
- Zimbabwe Development Bank Act (Chapter 24:13)
- Zimbabwe Development Corporation Act (24:15)
- Zimbabwe Stock Exchange Act( Chapter 24:18)
- Asset Management Act (Chapter 24: 26)
- Securities Act (Chapter 24:25)
- Exchange Control Act (Chapter 22:05)
- Reserve Bank of Zimbabwe Act (Chapter 22:15)
- Capital Gains Tax Act (Chapter 23:01)
What are the regulator’s Powers of intervention?
The Securities Commission of Zimbabwe has powers to intervene in terms of misconduct financial difficulty or otherwise as long as it is in the best interests of investors and preserves the integrity of the capital markets. The rejection or termination of membership and delisting of securities is the primary role of the ZSE, subject to intervention by the Securities Commission of Zimbabwe.
Can Class action suits occur?
The Securities Act, through section 99, provides for the class actions.
How quickly and through what medium is price sensitive information distributed by the listed companies?
The listing requirements give guidelines on release of price sensitive information and this is usually distributed through a cautionary statement in at least two daily print circulating newspapers.
What are the requirements for issue of contract notes or their equivalent?
Market participants (brokers) are obliged to issue contract notes within 24 hours of executing a trade.
How does the ZSE deal with failed trades?
Failed trades are reported to the Exchange and appropriate action is taken based on the period for which the deal has been outstanding.
What are the time frames for reporting prescribed information for ZSE listed companies?
Every issuer is required to publish and distribute interim and annual financial statements within three months from the ‘period end’ date.