BUSINESS REPORTER
The Zimbabwe Stock Exchange (ZSE) has said proceeds from a sell order on ZSE Direct will now be credited to the investor’s wallet rather than being transferred to their bank account as it moves to drive participation of individuals on the bourse.
In September, ZSE Direct was introduced as a platform to remove the perception that investment was for the sophisticated and anyone could participate.
ZSE chief executive officer Justin Bgoni said this week that the service will attract a 2% administrative charge levied on the sale proceeds. The service, ZSE Direct Instant, began yesterday.
“As a ZSE Direct client, your sell proceeds will be credited to your ZSE Direct wallet on the same trading day after a successful matched and confirmed sell order. Now you do not have to wait for the settlement cycle of T+3 to receive your sell proceeds, an added convenience brought to you by ZSE,” Bgoni said.
He said the retail investor could reinvest the proceeds easier and much faster and the measure eliminates additional charges associated with movement of funds from one bank to the other.
“This feature is only available for sell transactions on ZSE Direct, however the settlement cycle is still T+3 therefore when you buy shares through ZSE Direct, your purchases will appear under your portfolio on T+3,” Bgoni said, adding the bourse would continue to explore initiatives that promote financial inclusion and increase retail participation.
Bgoni said ZSE has seen the growth in retail participation since the launch of ZSE Direct last year. The bourse has been introducing new products to drive participation on ZSE. In January, the Old Mutual Exchange Traded Funds listed on the bourse. It tracks the performance of ZSE’s top 10 counters by market capitalisation. The top 10 counters are reviewed every quarter.
The 10 constituents for the third quarter are CBZ Holdings, Cassava Smartech Zimbabwe, Delta Corporation, Econet Wireless Zimbabwe, FBC Holdings, Hippo Valley Estates, Innscor Africa, National Foods Holdings, OK Zimbabwe and Simbisa Brands Limited.
