VFEX to commence trading next week
The much-awaited Victoria Falls Stock Exchange Limited (VFEX) is set to commence trading next week after its launch slated for Friday in the resort town, the Zimbabwe Stock Exchange (ZSE) has announced.
Trading only in foreign currency, the VFEX is a wholly owned subsidiary of the local bourse and has since been licenced by the Securities and Exchange Commission of Zimbabwe (SEZ) to begin trading.
In a statement ZSE chief executive, Justin Bgoni, said the official opening of the VFEX was set for October 23.
“The official opening of VFEX is scheduled for Friday 23 October 2020, at its new offices in Victoria Falls. The Minister of Finance and Economic Development, Honourable Professor Mthuli Ncube, will be the guest of honour.”
He added: “Trading, Depository services, clearing and Settlement on VFEX will commence on Monday 26 October 2020. VFEX will be issuing further details on these. VFEX extends its profound gratitude to all stakeholders including the Ministry of Finance and Economic Development, the Securities and Exchange Commission of Zimbabwe, the Reserve Bank of Zimbabwe and all market participants for the assistance rendered during the establishment of the exchange.”
According to Statutory Instrument 196 of 2020 (Exchange Control — Special Provisions for Securities Listed on the Victoria Falls Stock Exchange — Regulations, companies listed on the ZSE may only list up to 20 percent of their total capital on the US dollar bourse if its capital is raised offshore or from free funds.
“A company that is a Zimbabwean resident and listed on the Zimbabwe Stock Exchange; may list on the Victoria Falls Stock Exchange not more than 20 percent of its capital at any time on the Zimbabwe Stock Exchange: provided that any capital raised by such company on the Victoria Falls Exchange shall be from an offshore source or free funds,” reads part of the SI.
Securities listed on the VFEX shall be tradable and settled solely in United States dollars or a convertible currency.
According to the new regulations, a company whose residence does not lie in Zimbabwe may list on the VFEX in line with the broader goal of the US dollar-denominated bourse to attract new foreign capital.