Unclaimed shares worth US$630k still await owners

CHENGETEDZAI Depository Company (CDC) says it is enhancing its drive to identify and locate the rightful owners of unclaimed shares worth nearly US$630 000 that are currently held in its central securities depository (CSD).

A CSD is a digital platform designed to facilitate the efficient paperless clearing, settlement and safe custody of various types of investments, ensuring a streamlined process for both investors and financial institutions.

Chengetedzai said it held unclaimed shares valued at US$629 313 and ZiG2 504 180 as of the end of October 2024.

For a while now, the company has been running a comprehensive campaign aimed at reuniting shareholders with their investments, a move that fosters greater transparency and accountability within the financial market.

Accumulation of these unclaimed shares has occurred over the years for a variety of reasons.

Some of the main factors contributing to this situation are outdated or incorrect contact information on the part of the shareholders, unrecorded ownership transfers that prevent accurate tracking and a general lack of awareness among investors regarding their entitlements.

The initiative by Chengetedzai is in line with the Securities and Exchange Commission of Zimbabwe (SECZ)’s commitment to safeguarding investors’ interests and improving confidence in Zimbabwe’s financial markets.

To facilitate this process, SECZ has established numerous channels through which inquiries can be made. These include an interactive online portal designed for easy access to information, a dedicated helpline staffed with knowledgeable personnel and physical offices where the public can receive assistance in the verification process.

“Shareholders or their heirs who believe they might have unclaimed shares are encouraged to come forward and verify their status and reclaim valuable investments that may have otherwise remained inaccessible. SECZ is doing a very good job, making sure that people get what is due to them.

“We have seen a lot more traction in 2024 in terms of people coming to claim their shares more than in any other year. The value of unclaimed shares is US$US629 313 and ZiG2 504 180 as at the end of October 2024,” said CDC’s business development specialist at an engagement workshop hosted by SECZ.

“When you come through and you want to claim your shares, you will interact with Minerva in Newlands, which is our fund administrator.

“For a period of 10 years, up until 2024, it was Cormaton Consultants that had been handling this portfolio.”

Supervision and surveillance officer at SECZ Mr George Nhepera said if owners of these unclaimed shares could be located and identified, it would significantly increase the number of potential investors in the market.

Mr Nhepera believes tapping into this hidden resource could provide a substantial boost to the overall investment landscape.

“SECZ is keen on finding means and ways of bringing more people into capital markets, but instead of finding new people altogether, we have people we know are interested because they once bought the shares but we cannot find them. If we were to find those people with unclaimed shares, we could easily grow the base of investors in our market right now,” said Mr Nhepera.

SECZ has lately been encouraging all potential claimants to compile and submit essential documentation needed for the verification and claims process. This includes important items such as identification papers, which could range from national identity cards to passports, as well as share certificates that pertain to their investments in various securities.

This initiative is part of a larger strategy aimed at promoting financial inclusivity and ensuring integrity within Zimbabwe’s securities market.

The efforts by SECZ, in collaboration with the Investor Protection Fund, are designed to strengthen the financial framework of the country. By resolving these claims, they aspire to create a more robust and inclusive financial environment that not only protects individual investors but also contributes positively to the overall economy of Zimbabwe.

This drive reflects commitment to enhancing trust and participation in the financial system, ultimately fostering economic growth and stability for all stakeholders involved.-ebsinessweekl