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Enacy Mapakame Business Reporter
Proposed amendments to the Securities and Exchange Act will enhance the country’s capital markets, unlock value as well as enhance investor protection, stakeholders in the industry have said.

Addressing delegates at a stakeholders meeting held in the capital yesterday, Securities and Exchange Commission of Zimbabwe (SECZ) chief executive officer Tafadzwa Chinamo, said Zimbabwe was lagging behind regional and global economies and amending the Act would open new opportunities for growth.

Review of the piece of legislation will also improve the Commission’s effectiveness in the discharge of its duties as the capital markets regulator.

The amendments, if effected, will create more investor opportunities on the country’s exchanges who are looking not only for return on their investments, but also security. Currently, the Act does not provide for regulation of issuers, which has been one of its major challenges.

“The amendments will extend powers of the Commission to regulate issuers of securities,” said Mr Chinamo.

“This will also align us with international best practice and should create opportunities for our exchanges,” he said.

Among other benefits the amendments will bring enhanced record keeping as well as disclosure by listed companies.

Currently, some listed companies have been accused of withholding information especially from analysts and the media, information that is relevant for the investor.

“There isn’t much disclosure from local companies even when they are introducing new products or services.

“We want to inform investors but we usually have limited information,” said investment analyst Ranga Makwata.

Zimbabwe Stock Exchange (ZSE) acting chief executive Martin Matanda, said the proposed amendments were a welcome development in promoting ease of doing business, attract investors as well as enhance investor protection, which is crucial in any market.

“Regulation and investor protection are key to investors. Investors look for return on their investments, protection and disclosure so that they can make informed decisions.

“Governments in the region are looking at mobilising resources for development. Both local and global investors are important and require protection. They bring liquidity to the market and without it, the market will not function,” he said.

It is anticipated if approved, the proposed amendments will make the stock market more attractive. The amendments will benefit all investors, institutional and retail investors, stockbrokers and the exchange itself.

Association of Stockbrokers chairman Bart Mswaka, said any changes that would align Zimbabwe with international best practice, were a welcome development.

“Modernising our exchange will make it more attractive, we welcome the proposals,” he said.