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Business Reporter
THE cost of transacting on the Zimbabwe Stock Exchange eased marginally, 0,052 percent, following the full dematerialisation of all the listed stocks, which was completed last week.

The cost of trading eased marginally from 4,136 percent to 4,188 percent from the beginning of this month, as stipulated in Statutory Instrument 108 of 2014.

Following the switch to the paperless bookkeeping system, the Securities and Exchanges Commission levy for both buying and selling fell to 0,1600 percent from 0,1710 percent.

The ZSE levy registered thin retreat from 0,1200 percent to 0,1000 percent (both sides) while the investor protection fee took effect for the first time at 0,025 percent.

The Central Securities Depository levy eased softly from 0,1200 percent to 0,1000 percent of transaction cost, but stamp duty was maintained on buyers at 0,2500 per- cent.

Capital gains tax and brokerage fees were unchanged at 1 percent and 0,9200 percent for both sellers and buyers of stock on the country’s premier stock exchange.

The 15 percent Value Added Tax on brokerage fee was also unmoved 0,1380 on both sellers and buyers of stock. Total buying cost 1,693 percent from 1,719 percent previously.

Cost of transaction for sellers marginally declined to 2,443 percent after the introduction of the electronic trading system from 2,469 percent before the changes were effected. As such, cumulatively the transaction cost fell to 4,136 from 4,188 percent.

The local bourse seems to be headed in the right direction despite the myriad of challenges posed by a difficult operating environment due to challenges facing the economy.

Only on Monday the ZSE switched from manual to automated trading system, although the new system got off to a false start on Friday last week as caution was taken.

CSD is an electronic book entry system to record and maintain securities and to register their transfer. In Zimbabwe, it is run by Chengetedzai Depository Company Limited.

Securities are maintained in electronic form in the investor’s account just like how money is kept in the form of electronic credits in any bank account. In a CSD system, ownership will be changed as soon as securities move from one investor account to another.

The system is purely a settlement vehicle for transactions that have been traded on a registered securities exchange and offers a number of benefits, chief among them, security.

In Zimbabwe, participants on the electronic book entry system for stocks comprise 13 stock- brokers, five custodians, three transfer secretaries and two settlement banks.

Thus far, new ZSE chief executive Mr Alban Chirume has delivered automated trading system, CSD and is at advanced stages regarding amendments to the listing rules.