Published: 3 hours ago

The Securities and Exchange Commission of Zimbabwe (SecZim) has assumed direct administration of unclaimed shares from the Investor Protection Fund (IPF), effective July 2025, in a move aimed at tightening oversight and improving investor protection.

The IPF was established to compensate protected investors for losses suffered as a direct result of a licensed contributor's failure to meet obligations due to insolvency, malpractice, or other causes. According to Statutory Instrument 83 of 2017, a "protected investor" includes a holder of a security dealt with by a contributor, a person for whom a contributor holds a security, or an individual who has a right, whether vested or contingent, to obtain a security from a participating firm.

As of March, the value of unclaimed shares stood at ZiG69,09 million and US$632 745,19. These assets are held by the Chengetedzai Depository Company Limited (CDC), which operates Zimbabwe's central securities depository.

SecZim chief executive officer Anymore Taruvinga confirmed the development, saying the change was necessary for continuity and to strengthen regulatory oversight.
"It's more of moving back the admin to SecZim as the unclaimed shares were created through a SecZim directive and SecZim had transferred the admin to the IPF, which is also a creation of SecZim. IPF has no permanent secretariat and for continuity, it was prudent to house the unclaimed shares under SecZim, which has the mandate for investor protection," he said.

Taruvinga admitted that since the transition, little information has been shared publicly, but said the commission is preparing to engage citizens and investors on the new claims process.
"We need to now tell the concerned citizens and potential investors of the new processes that are required for them to claim their shares. But it remains a sizeable pile, and our mandate is to ensure that everyone on that pile is reconciled with their wealth," he said.

During the first quarter of this year, trades worth ZiG975,26 million were settled through the CDC and the Zimbabwe Stock Exchange Depository. Nominee accounts accounted for the largest share of purchases at 31,23 percent, followed closely by corporations at 30,62 percent, while individual investors made up just 4,36 percent of activity.

Against this backdrop, SecZim's decision to directly oversee unclaimed shares reflects broader efforts to strengthen investor confidence in a market where institutional players dominate trading activity. In December 2024, the regulator revealed that it was also considering stiffer penalties for holders of unclaimed shares to accelerate claims and settlements.
- Newsday