Securities watchdog set to start January

Roadwin Chirara

THE Securities Commission set up to regulate the Zimbabwe securities market will start its operations on January 2.



>The commission will also set conditions for the listing of companies on the Zimbabwe Stock Exchange (ZSE) and other bourses that might be licensed to operate in the country.


ZSE chief executive officer Emmanuel Munyukwi, speaking at the recently held Insurance Institute of Zimbabwe Congress, confirmed the commission would start operations beginning next year.


“I am pleased to advise that the long-awaited Securities Commission will operate from January 2 2006,” Munyukwi said.


He said the growth of Zimbabwe’s securities market would be influenced by the success of its regulatory framework.


“The healthy growth and credibility of a developing securities market depends on how successfully regulatory supervision is implemented and whether it is seen by investors as a fair and well-regulated market of integrity,” Munyukwi said.


He said the existence of a regulator allows for the creation of a level playing field for players in the sector.


“Safeguards and standards are essential to foster confidence among investors and provide a level playing field for traders, issuers and investors,” he said.


He said accusations that the ZSE was a source of imaginary wealth was ill-informed.


“The ZSE has been accused of irrational exuberance and a source of imaginary wealth. I do not subscribe to these accusations as they are ill-formed and misplaced,” Munyukwi said.


He said the stock market had played a majort role in the development of the country’s economy.


“The market has played a significant and pivotal role in the development of the country and is supposed to reflect the country’s socio-economic health,” said Munyukwi.


He said it was unfortunate that the positive performance of the ZSE was failing to reflect the true picture of the economy which has declined significantly.


“We have a paradox as the activity on the ZSE does not reflect the economic well-being of the country. The activity on the market is interest rate and currency induced,” Munyukwi said.


“The country’s economic meltdown is not sustainable and the theme of your conference ‘Soaring above the Storm’ could not have been a better choice given the prevailing economic conditions,” said Munyukwi.


The ZSE is battling to raise over US$2 million needed to digitalise its trading from the manual system.

© 2018 ALPHA MEDIA HOLDINGS. All rights reserved.
Powered By AMH Digital
Top