COMPANIES can now apply for licences to set up alternative trading platforms, Securities and Exchange Commission of Zimbabwe chief executive Mr Tafadzwa Chinamo has said. This follows the introduction of a Statutory Instrument 100 of 2016 which sets out the rules and regulations for operating an electronic market for trading in securities. Registration with the commission will be required.Last October, SecZim announced it would issue out licences for the setting up of a new flexible trading platform which allows companies to sell securities to the public even if they are not listed on the stock exchange.
The capital markets regulator had anticipated to start processing applications for the ATP by April, but missed the target as the rules and regulations governing its operations had not yet been approved by parent ministry, the Ministry of Finance and Economic Development.
“If there is anyone who wants to set up an ATP they can now do so. All they need to do is bring their applications to the commission for approval as guided by the SI 100,” said Mr Chinamo by telephone.
“The SI 100 now sets out the possibility of setting up an ATP,” he said.
The SecZim will play a minimum role limited to supervisory functions over trade and settlements as ATPs world over tend to self regulate.
ATP provides an alternative for private companies and other individuals hesitant to lose out on the stock market to raise capital by selling their shares or bonds to the public.
It is a system that provides or maintains the market place of facilities for bringing together buyers and sellers of securities but does not set rules for subscribers.