Zimbabwe capital markets regulatory authorities are getting tough on firms flouting listing regulations following an extension of CFI Holdings suspension from trading its shares on the local exchange to next month.
The Zimbabwe Stock Exchange authorities have notified CFI Holdings directors of a further extension of the suspension of the company’s shares from trading to May this year after the expiry of the three-month period last month in order to assess whether the company has solved share irregularity issues.
A South African based investor Mr David Duplesis says the move by the regulatory authorities which is also practiced by the JSE securities exchange will act as an indicator that Zimbabwe is tightening monitoring the trade of shares to ensure accountability.
“They are simply taking their part in stamping out any malpractices that have a negative effect in the trading of shares,” said Mr Duplesis.
Local businessman Mr Chris Mapondera says firms need to comply with the stipulated regulations on the capital markets otherwise it is the investor or shareholder that will suffer loses.
“It is the investor that is likely to suffer taking into account losses that area being incurred by the investors,” Mr Mapondera said.
A United States of America-based businessman Mr Freddy Cave says it is now an international requirement for companies to comply with set rules.
“Any investor needs to comply with the regulations because that is the only way to create a positive platform in unlocking value for the shares,” he said.
The Securities and Exchange Commission of Zimbabwe has introduced rules on trading regulations for listed counters to increase external investor confidence on the capital markets.