GOVERNMENT has gazetted the Zimbabwe Stock Exchange Limited (ZSE) listing requirements under Statutory Instrument 134 of 2019 in a bid to enhance transparency and accountability in the governance of listed companies.
BY MTHANDAZO NYONI
The gazetted listing requirements, which had not been reviewed since 2002, have been necessitated by significant and numerous changes in the local and foreign capital markets which had not been accommodated by the current rules, the local bourse said in a statement.
“In particular, the landscape has changed on the macro-economic front as well as in terms of technological advancements and updates in legislation over the last 17 years,” ZSE chief executive Justin Bgoni said.
“Some of the main objectives of the revised listing requirements include enhancing transparency, disclosures and accountability in the governance of listed companies in order to build up investor confidence in the manner in which our market is regulated and operated.
“The revised listing requirements also increase the protection of minority investors as well as improving the regulatory environment by making it conducive for dually listed companies to list on the ZSE,” he said.
Some of the conditions for secondary listing are that the ZSE will not grant a secondary listing to an issuer that has a primary listing on a junior or secondary market of an exchange.
“Where an issuer has a secondary listing status, it will be required to comply with the listing requirements of the exchange where it has its primary listing, save as otherwise specifically stated in these rules,” the document read.
“On application, the issuer must confirm to the ZSE that it is in full compliance with the requirements of the exchange or competent authority on which it has its primary listing. The ZSE will require a letter of support from the relevant exchange or competent authority.
“The ZSE will not grant a listing or list securities which are not listed in the country of incorporation or in the country of primary listing, unless the issuer can demonstrate that the absence of such a listing is not due to any negative or problematic circumstances, events or regulatory issues,” it said.
In the trading week ended Friday, total market capitalisation on the bourse gained 9,78% to close at ZWL$27,38 billion.
The All Share Index was 5,55% higher at 200,22, while the Top 10 Index was up 11,12% to 201,69.
The Industrial Index closed the week 9,06% higher at 690,67, while the Mining Index rose 2,44%, ending the week at 248,51.