The Zimbabwe Stock Exchange (ZSE) has temporarily suspended the membership rights of three securities dealers and one firm, pending a hearing on alleged misconduct. The affected members are prohibited from acting as securities dealers or in any other capacity exercised by duly admitted members of the Zimbabwe Stock Exchange.
Full details of the alleged violations have been formally communicated to the affected members. In a notice on Wednesday, ZSE said:
Notice is hereby given to the Investing Public, Securities Intermediaries, and all other stakeholders that the Zimbabwe Stock Exchange Limited (“ZSE”) has provisionally suspended the membership rights of EFE Securities (Private) Limited, Mr Edgeton Tsanga, Ms Brenda Mwaturura (and ) Ms Coreen Madanha.
The effect thereof is that the affected members are barred from acting as securities’ dealers or any other capacities that can be exercised by duly admitted members of the Zimbabwe Stock Exchange pending a hearing into their alleged conduct that was detrimental to the integrity of the market.
EFE Securities and its authorized representatives must ensure that all trades executed before the provisional suspension are cleared and settled according to the rules of the exchange and the relevant central securities depositories.
The ZSE has stated that the provisional suspension is effective immediately. The market will be informed of any further developments regarding the matter in due course. The move is intended to maintain market integrity and ensure that all members of the Zimbabwe Stock Exchange comply with the rules and regulations governing their activities.