SecZim cancels Renaissance, New Africa licences

HARARE - The Securities Commission of Zimbabwe (SecZim) has cancelled Renaissance Securities (Renaissance) and New Africa Securities’ (New Africa) licences for failing to raise $150 000 minimum capital.

Tafadzwa Chinamo, SecZim chief executive, said following the cancellation of its licence by the commission, Renaissance has been placed under provisional liquidation.

“Members of the public who had invested in shares with Renaissance are hereby urged to approach the liquidator Phibion Gwatidzo of Baker Tilly Gwatidzo Chartered Accountants for the purpose of collecting share certificates registered in their own names,” he said.

He also said Renaissance shareholders should facilitate the registration of shares that are still registered under Renaissance Nominees into individual shareholders’ names.

Chinamo said queries regarding share certificates held by New Africa will be addressed by the Zimbabwe Stock Exchange (ZSE).

Once one of the biggest brokerage firms on the ZSE based on volumes, New Africa announced its closure in March last year after failing to meet the minimum capital stipulated by the capital markets regulator.

A month later, SecZim suspended the firm for six months pending its plans to meet minimum capital requirements.

Several Zimbabwean stockbroking firms have been struggling due to the prevailing liquidity crisis, with depressed foreign investor participation.

This year, Kingdom Stockbrokers voluntarily surrendered its licence citing viability concerns emanating from low volumes of business.

Last year, Interfin Securities licence was revoked on the basis that it contravened Sections 24:25 of the Securities Act by carrying out activities not authorised in terms of the securities dealing firm licence after securing funding and on lending to third parties.

SecZim was established through an Act of Parliament to, among other functions, provide high levels of investor protection, reduce systemic risk, regulate trading and deal in securities and register, supervise and regulate securities exchanges.

The commission also licences, supervises and regulates licensed persons to ensure high standards of professionalism and integrity on their part and encourage the development of free, fair and orderly capital and securities markets in Zimbabwe. - John Kachembere

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