Golden Sibanda Senior Business Reporter
The Zimbabwe Stock Exchange is working on putting new listing rules in statutory instrument format before seeking their approval by the regulator, having completed drafting the regulations. Securities and Exchanges Commission of Zimbabwe, which regulates the ZSE, chief executive Mr Tafadzwa Chinamo said in an interview yesterday that the rules would, however, not be a statutory instrument.
He said the actual document of the new listing requirements, which among other objectives seeks to enhance financial disclosure have been completed, but the ZSE had engaged experts to put them in the form of an SI before its board adopts them.
Mr Chinamo said that there were companies disclosing information well over stated levels, some that were doing good in that respect, but of concern were particularly the ones not doing enough, yet “it means something to be a listed company”.
“They have engaged someone to draft them, writing them in a manner similar to normal legislation. Once the ZSE board approves, they will submit to us and start implementing the new requirements,” Mr Chinamo said.
However, to get approval of SECZ, ZSE’s new listing rules must comply with the regulator’s minimum listing requirements, which it is working on and expects to conclude by end of March next year.
Overall, the rules should benefit mainly shareholders.
Mr Chinamo said the main objective of the listing rules was to make sure that minimum regulatory standards were complied with, but it has not been easy to enforce some rules not written down.
Rewriting the rules should enhance their clarity, detail and ensure they are in harmony with other pieces of legislation such as the Companies Act and the regulator’s own listing stands.
The new rules are also expected to improve governance requirements for listed companies, term limits for chief executives, stiffer penalties for offenders and quarterly financial reporting among the requirements that have been included.
Quarterly reporting was mooted, despite increasing costs to already burdened companies, after it was realised that a lot can happen within the six months current reporting intervals, especially in a volatile economy, which is the best practice globally.
Further, the new rules will outlaw aspects of multiple directorships and protect the interests of minority shareholders who often do not have enough information about how firms are run.