Heavyweights agree to dematerialise shares as ZSE automation nears

Heavyweights agree to dematerialise shares as ZSE automation nears

HARARE, June 16 (The Source) – The dematerialisation of shares on the Zimbabwe Stock Exchange is nearing completion after heavyweights Innscor Africa Limited and Padenga announced plans to migrate to the Central Securities Depository ahead of the July 3 deadline to automate the local bourse.

The development leaves six companies out of the 62 listed yet to complete to complete the exercise after Masimba Holdings shareholders agreed to dematerialisation at the group’s annual general meeting last month.

The ZSE automated trading platform is set to go live next month, a development which could see trades quadrupling.

Last month the country’s central securities depository firm said it will rely on moral suasion to convince the remaining nine of the 61 listed companies that are yet to switch to the electronic platform as the country’s equities market looks to complete its automation.

“Dematerialisation of Innscor Africa Limited securities will commence on Wednesday 24 June 2015. The trades involving Innscor Africa Limited shares for the period up to Tuesday June 30 (inclusive) will shall continue to trade and settle in the physical form,” company secretary Andrew Lorimer said in a statement.

Padenga also announced that it would also fully dematerialise next month.

Chengetedzai Depository Company said it had engaged the local bourse to persuade issuers of shares to dematerialise, saying legal gaps between laws governing business had resulted in the delays. Early this year, the firm had set a March deadline to complete the process.