Oliver Kazunga Business Reporter
THE Central Securities Depository (CSD) is expected to go live next month having missed the first quarter target date.
Outgoing Finance Minister Tendai Biti in the mid-term national budget statement said significant progress had been made in relation to the establishment of the depository.
“In line with the vision of modernising our capital markets infrastructure notable progress has been registered in the establishment of the CSD.
“The CSD implementing company, Chengetedzai Depository Company, has set up a data centre and installed hardware.
“The system is expected to go live in September 2013,” he said.
Government this year gazetted the CSD regulations to pave way for the operationalisation of the securities depository.
The regulations set out a framework for the registration, supervision and regulation of the CSD, as well as licensing requirements for depository participants.
The gazetting also calls for the need for all market players to prepare in terms of capacity building in the implementation of the project.
Mr Biti urged the implementing company to ensure that the set timelines were met without fail since all the conditions precedents for the operationalisation of the CSD were already in place.
He said because the depository was expected to go live in September, automation of the Zimbabwe Stock Exchange would follow later.
Automation of the ZSE is expected to improve daily trades on the bourse from $1 million to between $5 million and $6 million.
“The benefits accruing from an automated system cannot be over emphasised, particularly in this era of ever evolving technology,” he said.
Development within Zimbabwe’s capital markets come at a time when markets have become extremely competitive due to financial globalisation.
In order to attract a significant amount of possible foreign portfolio investments, the country needs to move with times in technology.
In view of this, Government has also directed efforts towards ensuring that there was price discovery in the market, good corporate governance, enabling infrastructure and strengthened regulatory and supervisory framework.
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