HomeBusiness DigestNo securities constitution as yet

No securities constitution as yet

Shakeman Mugari

MAJOR securities in the options market have not submitted their draft constitution to the Zimbabwe Stock Exchange (ZSE) and Reserve Bank of Zimbabwe for consideration.

The delay is likely to further stall the trade on the options market as companies continue to suspend trade due to their unregulated status.

The derivatives association is also still to convene a meeting to come up with an agreed document to regulate the options market.

The ZSE raised concerns and persuaded the companies to devise a constitution to regulate the operations of the derivatives, which they claimed were causing “volatility and speculation” on the market. The organisation is understood to have begun distributing the draft constitution to stakeholders for recommendations on Wednesday this week.

The responses from the interested parties are expected anytime now.

An analyst with Barbican Asset Management said the association had been delayed due to the few working days that characterised last month.

The analyst said: “We were supposed to have met last month but due to the disturbances in the working days we have now resolved to meet before May 20.”

At a meeting on March 25 members agreed on a draft constitution, which would be sent to stakeholders for consideration.

The members also agreed to meet within 30 days to compile the proposals of the other stakeholders before April 25. The association was expected to deliver the proposed constitution to the ZSE and the RBZ.

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