Published: 16 June 2014

Chengetedzai Depository is expected to launch the nation's first central securities depository (CSD) this month following the firm's commencement of opening accounts with stock brokers and custodians.

Final preparations for the launch of a central securities depository are on course with indications that this might be as soon as this month, although Chengetedzai Depository Company is keeping a firm lid on the details.

The firm has already utilised the two approved environments towards the launch of the CSD; which are test and live, that were approved by the Securities Commission of Zimbabwe.

Core hardware has already been installed.

The firm's chief executive officer Campbell Musiiwa says the details of the CSD will be released in due time but added securities transactions will be processed in an electronic book entry form.

"We will be expediting the settlement of equity transactions and ensuring compliance with international best practice," said Musiiwa.

Under the custodian model, investors will have a choice of either going directly through a custodian for the purchase of shares, through a broker or through Chengetedzai, which is also now a custodian.

In May 2010, government gazetted a new statutory instrument giving legal effect to the setting-up of the country's first CSD following delays that have slowed down changes as capital markets embark on far-reaching reforms.
- zbc

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