HARARE - THE Securities Commission of Zimbabwe has increased preliminary capital adequacy requirements for firms from about US$10 000 to US$1 million.
The highest payment will be US$1 million for Securities Exchanges, while the lowest will be US$10 000 for Securities Dealers operating in Zimbabwe.
“Preliminary capital adequacy figures for 2011 have been revised,” said Augustine Chirume, Chief Executive, in an exclusive interview.
“The country’s capital adequacy requirements shall be based on the minimum net worth values.”
He said Securities Exchanges would now cost US$1 million, Securities Custodians (US$500 000), Securities Transfer Secretaries (US$150 000), Securities Investment Advisor Corporate (US$150 000), and Securities Dealing Firms (US$100 000).
Chirume said in addition, liquid capital requirements for firms would also be hiked next year.
He said by March 31, 2011, firms would be required to have four weeks operational cover and by June 30, this would be increased to a minimum of US$150 000.
He said Securities Individual Investment Advisers would need US$10 000 together with Securities Dealers in Zimbabwe.
“All market players shall comply with the registration and licensing requirements in terms of the Securities Act (Chapter 24:25) and the Securities (Registration, Licensing and Corporate Governance) Rules, Statutory Instrument 100 of 2010 by December 31,” Chirume said.
“The deadline for submission of application is December 31,2010.”
He said after December 31, 2010, it would be “illegal to continue trading without being registered or licensed by the Securities Commission of Zimbabwe”.
While not revealing the fine, Chirume said hefty penalties would be slapped on culprits flouting the new stringent regulations.
Post published in: Agriculture