zim_stock.jpgGovernment is with effect from next year expected to tighten trading regulations on the Zimbabwe Stock Exchange, to protect the interest of investors by ensuring that stock-broking companies  pay the  Investors Protection Levy.

 
The arrangement is being made following the introduction of an Investors Protection Levy in June last year where a 0,05% of the total share transactions is charged on stockbrokers and deposited into a fund that is managed by the Securities Commission of Zimbabwe.

 

The money is used to cover risks that might be experienced by investors.

Ssecurities commission ceo alban chirume edit.jpgecurities Commission of Zimbabwe Chief Executive Officer, Mr. Alban Chirume said while the Investors Protection Levy has raked in US$4 million, government has mandated the organisation to ensure that stock broking companies continue to comply with the stipulated regulations aimed at ensuring transparency and safety in the dealing of shares.

 

“We are still working with government as our major partner in crafting the relevant rules for the benefit of investors in the short to long term,” he said

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Mr Chirume said there has been a slow progress in terms of revenue collections from the levy due to limited trading conditions on the local market where official figures show that the daily average number of shares traded declined from 14,5 million in January to 12,8 million shares by October this year.

 

Government has mandated the Securities Commission of Zimbabwe to regulate and control operations of markets such as the money market, stock market and the commodity exchange set for launch next year with a view of ensuring that transparency and accountability for are guaranteed forthe benefit of  the investing public.