ZSE seeks players for foreign currency bourse

BUSINESS REPORTER

The Zimbabwe Stock Exchange (ZSE) is seeking participants to trade on a soon to be launched foreign currency bourse, the Victoria Falls Stock Exchange (VFEX).

The stock exchange is currently waiting licencing by the Securities and Exchange Commission of Zimbabwe (SECZ) following the gazetting of the Exchange Control regulations for securities listed on the VFEX.

In a notice Friday, ZSE chief executive officer Justin Bgoni said securities dealers, accounting firms, banks, legal practitioners and investment advisers wishing to offer sponsor services on VFEX are eligible to express their interest. He said custodians, securities transfer firms and investment management firms licenced by SECZ have to express their interest by the close of business on August 18.

The custodian firms should be part of clearing banks which are able to clear and settle transactions in United States Dollars, Bgoni said.

The VFEX will see PPC, Old Mutual and Seed Co International trading after the trio was told to halt trading when trades on ZSE resumed on August 3 after a month-long suspension to pave way for investigations into illicit transactions.

Govt sees VFEX as a platform to raise funding for local firms.

But critics say the repatriation of capital gains and dividends will be the litmus test for the exchange amid concerns over the settlement of transactions for offshore investors.

Companies listed on ZSE such as BAT Zimbabwe and Delta Corporation have been struggling to remit dividends to foreign shareholders arising from the foreign currency squeeze.

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