ZSE pushes for more reforms on the local bourse

Published: 10 June 2013
ZIMBABWE Stock Exchange-listed companies may be forced to make more disclosures or republish their financial results for the just ended reporting season as the equities market regulator pushes for more reforms on the local bourse.

Sources close to the developments said the Public Accountants and Auditors Board and the ZSE monitoring panel were currently reviewing financials for companies which announced year-end or half year results for the period ending December 31 2012.

Nearly 20 companies out of the over 30 companies that published results, according to sources, will be sampled to establish whether they made full disclosures which also include the auditor’s opinion.

Disclosures were crucial in assisting outside reviewers of financial information for the purpose of making investments in the business.

This came after the Securities Commission of Zimbabwe raised concerns that some publicly-owned companies were withholding critical information from investors. SECZ chief executive officer Tafadzwa Chinamo could not be reached for comment at the time of going to print.

But the source close to the development said "The PAAB has indicated that in the next three weeks it would have completed reviewing results for companies which published financials for the period ending December 31 2012.

"The board would then advise the ZSE on whether the companies met the minimum required reporting standards. Those companies that fail to meet these standards may either republish the results or correct the anomalies in the next set of results depending on how off they would have missed the mark."

SECZ has in the past said there is need to balance ethics, self-policing and regulation to ensure the success of the country’s capital markets.

Last November, Chinamo said the commission was concerned with the reluctance by some listed companies to announce looming going concern crises which often prejudiced investors. Official statistics indicated that the ZSE has currently being driven mainly by large-cap counters and a handful of mid-cap counters. Penny stocks continued to struggle mainly due to weak shareholder support and undercapitalisation.
- fingaz
Tags: ZSE,

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