CDC seeks owners of unclaimed ZSE shares

Chengetedzai Depository Company (CDC) says it is seeking to identify the owners of millions of dollars worth of unclaimed shares held in its Central Securities Depository (CSD).

CDC is a digital platform for holding securities to ensure efficient paperless clearing, settlement, and safe custody of investments.

According to its CSD update for June 2023, individuals hold the largest number and proportion of accounts on the CSD at 51,64 percent, unclaimed shares account for 36,01 percent. Institutional investors hold the balance of securities.

“This has prompted the CSD to go on a market drive where efforts have been increased to identify those making up the unclaimed shares category so that they claim their shares,” said Mr Prosper Mutorogodo, the company’s chief executive.

According to the update, equities market capitalisation on the Zimbabwe Stock Exchange (ZSE) increased by 56,58 percent for June 2023, closing at $13,987 billion.

Mr Mutorogodo said the total turnover for trades on the ZSE settled through the Chengetedzai CSD was $79,346 billion for the month under review.

Dematerialised securities registered on the CDC CSD accounted for 56,62 percent of the total market capitalisation for dematerialised shares on the ZSE, and their total value was $7,358 trillion as of June 30, 2023.

The CSD update shows that the investor types that holds the most significant value on the CDC CSD are corporate and pension funds, which account for 34,82 percent and 24,42 percent, respectively.

During the month under review, the average dematerialisation penetration ratio (Demat Ratio) across all counters was 58,14 percent.

The CDC said the cumulative number of trades processed in 2023 closed at 29,713. In terms of account opening, Mr Mutorogodo said the CDC CSD opened 249 new accounts in June 2023, resulting in 1,534 accounts being opened this year to date.

“As a result, the cumulative number of accounts opened on the CDC CSD as of June 30, 2023 was 45,519.

“Local investors accounted for 95,10 percent, and foreign investors accounted for 4,90 percent of all accounts opened on the CDC CSD as of June 30, 2023,” he said.

CDC recently said it will improve its offerings to better meet customer needs through the introduction of a mobile application as well as offer services on USD-based exchanges.

Mr Mutorogodo said that due to the global financial markets accelerated adoption of digital technology, CDC sees opportunities in expanding its digital offerings.

“The company’s focus will be on the ongoing improvement of its products, stakeholder relationships, systems, and procedures to better serve the market and compete with other market players.

“CDC Central Securities Depository (CSD) is geared to implement USD settlement in the short term as preparations are now at an advanced stage where CDC CSD will also be offering services on USD-based exchanges,” he said. -herald