HARARE – The Securities and Exchange Commission of Zimbabwe has defended the recent move to slash transaction fees on the stock exchange by almost 5%, following an outcry by brokers who say they were not consulted in a decision that significantly reduces their earnings.
Government last Friday gazetted new amendments to Zimbabwe Stock Exchange (ZSE) transaction charges that will see securities market levies pegged at 4,2% of the transaction.
It also suspended the Investor Protection Levy for the next 12 months as it seeks to boost the performance of the local bourse and the CSD.
The total transaction cost on ZSE is now made up of brokerage fee (0,9%), Securities Exchange Commission levy (0,17 %), ZSE levy (0,12%) CSD levy (0,12%) and stamp duty (0,25%) on buyers.
“The SI was issued without a notice for people to make adjustments and to communicate to stakeholders,” one stockbroker who declined to be named, said.
“We also have to take a haircut and this has reduced our earnings.”
The ZSE automation project, which is expected to cost $2 million, will modernise the bourse, replacing the manual system while enabling longer trading hours and reducing fraudulent sale of non-existent stocks.
The new system would also interface with the CSD, to help in settling transactions.
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– The Source
