THE Victoria Falls Stock Exchange Limited (VFEX) has been issued with a licence by the regulatory authorities to operate a securities exchange and the bourse is finalising modalities to start trading soon.
VFEX is a wholly-owned subsidiary of the Zimbabwe Stock Exchange (ZSE) and it would be denominated in foreign currency and targets foreign investors as well as global capital markets especially the mining industry.
In a statement yesterday, ZSE chief executive officer Mr Justin Bgoni said the market would be updated on the exact date when VFEX will go live.
“The VFEX is pleased to advise stakeholders that it has been granted licence to operate a securities exchange by the Securities and Exchange Commission of Zimbabwe in accordance with the Securities and Exchange Act, Chapter 24:25.
VFEX is now now finalising the listing and membership requirements, setting up of the trading and depository systems as well as modalities on the clearing and settlement of transactions.”
It is envisaged that the completion of the above processes, which is imminent, would enable the VFEX to be launched.A total of 80 firms in the financial and capital markets have already expressed interest to participate at VFEX.
Applications to participate at the new bourse were invited from various stakeholders that include security dealing companies, accounting firms, legal practitioners, investment advisors, banks, security custodians and investment management firms.
Industry leaders have applauded Government’s VFEX launch, highlighting that this would attract foreign direct investment to the prime resort town and enhance quick recovery of the tourism industry.