CHENGETEDZAI Depository Company Limited (CDC) is holding unclaimed shares worth over US$4,5 million with an official urging investors to reclaim their shares.
The unclaimed shares are worth US$629 313 and ZiG102 504 188 (about US$4 million).
CDC has embarked on a campaign to educate the public about the unclaimed shares and how they can be reclaimed. The unclaimed shares are held in the Investor Protection Fund.
The fund provides compensation to protected investors for losses suffered as a direct result of a licensed contributor to the fund being unable to meet their liabilities through insolvency, malpractice or other cause.
“Unclaimed shares are basically shares surrendered by stockbrokers to the Investor Protection Fund,” CDC business development specialist Patience Chipara said while presenting at a recent Securities and Exchange Commission of Zimbabwe (SecZim) media workshop in Harare on Friday last week.
“The shares arose from the small, marginal balances from investing activities, changed contacts by investors, migration of investors, deceased estates, use of nominee accounts pre-2012, bank charges and sale value orders.”
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She noted that the company replaced the paper certificate with electronic balances which would easily facilitate the clearing, settlement and safekeeping of securities.
“To answer the question of why these shares were surrendered is the fact the shares were being abused by stockbrokers. Shares were registered in the name of nominees and kept by the stockbrokers before 2012. This exposed these shares to abuse by stockbrokers,” Chipara said.
“On August 29 2012, SecZim directed all securities dealing firms to register all securities in the name of their respective beneficial owners and subsequently deliver the securities to the owners. SecZim further directed that securities that remained unclaimed were to be handed ever to custodians for safe custody pending collection by the rightful owners.”
The following year, SecZim issued a directive for the registration of securities in clients’ names. Another directive was issued that instructed broking firms to hand over share certificates to two appointed custodians.
Unclaimed shares were moved to CDC where they were dematerialised, amounting to US$629 313 and ZIG102 504 188.
Chipara said for one to claim the shares, he or she needed to provide proof of ownership, certified identification documents and proof of residence. One also needs proof of ownership such as a letter from a stockbroker, broker notes, account statement and a dividend notice.