Harare – The Securities and Exchange Commission of Zimbabwe (SECZIM) on Tuesday proposed a number of amendments in a bid to strengthen its operations which it will present to Parliament for it to be an Act.
The Securities and Exchange Act [Chapter 24:25] establishes the Securities and Exchange Commission that regulates securities exchanges and central securities depositories. It also regulates the business of securities dealers, investment managers and other professionals who deal in securities, in order to protect investors and ensure that markets are fair, efficient and transparent.
Presenting a synopsis of the amendments to stakeholders in the capital Tuesday, SECZIM CEO Tafadzwa Chinamo said the move is necessary for the country to comply with the requirements of the International Organization of the Securities Commissions (IOSCO).
He said the amendments will amend the Act to increase the Commission’s effectiveness and extend its powers; to provide further protection to investors and to take account of developments that have occurred in the financial services sector.
In the past, following its establishment in 2009, the commission encountered open resistance from stakeholders who questioned its authority, hence according to Chinamo the amendments are aimed at enhancing SECZim powers of issuers of securities and further its influence in the capital markets.
The Bill will amend the Securities and Exchange Act [Chapter 24:25] in order to achieve several objectives.
In more detail, the individual clauses of the Bill seek to enhance the powers of the Commission over issuers of securities, adopt a sound prudential supervisory, conduct and regulatory standards in line with international standards, provide for cooperation and sharing of information with both local and foreign regulators, to buttress Commission’s authority on licensed or registered persons and to provide for the charging of civil penalties.
Equity Axis News
Equity Axis is an online financial media service platform focused on African markets offering real-time stock quotes, news, analysis and data.