VFEX lures retail investors

BUSINESS REPORTER

The Victoria Falls Stock Exchange (VFEX) is luring retail investors after publishing steps to follow for one to invest on Zimbabwe’s foreign currency only bourse.

The push to lure retail investors comes after the constituency is credited with pushing up trades on the domestic currency bourse.

In a joint statement signed by VFEX chief executive officer Justin Bgoni and CBZ head of Custodial Services Simbiso Musa, retail investors should first open trading, Central Securities Depository and Foreign Currency Investments (FCA)  accounts done by completing and signing account opening forms at preferred stock broker and custodian bank.

Individuals have to submit national ID (passport for foreign investors, proof of residence and source  or proof of income, among others).

For companies, trusts or estates, they have to submit registration certificates and list of directors or trustees, among others.

After opening the accounts, the retail investors should deposit funds into the investors FCA account linked to the CBZ custodial account.

The retail investors can advise broker to place an order on the VFEX trading platform.

“If the price you want to pay is matched meaning there was a seller at the same price on the same security, then execution would take place.

“The settlement cycle which is the period taken to transfer ownership from the selling investor to the buying investor will be three (3) days from the day an investor’s shares are executed on the VFEX platform,” the statement said.

VFEX began trading in 2020 and it has four listed counters—Seed Co International, Padenga, Bindura Nickel Corporation and Caledonia.

Government has introduced several incentives to lure investors on the VFEX, including slashing withdrawal tax on dividends for foreign investors  by half to 5% from 10% and tax breaks.

Also, trades on the VFEX do not attract capital gains tax on the disposal of listed securities