ZSE fees marginally drop

ZSE fees marginally drop
Published: 15 July 2014
TOTAL costs of transacting on the Zimbabwe Stock Exchange have dropped marginally to 4,19 percent from 4,21 percent, according to new charges gazetted by the Ministry of Finance and Economic Development.

The new charges were effected last Friday and will be applicable to June 30 next year. Thereafter, the new charges will come into effect with the total costs of transaction expected to further go down to 4,13 percent.

Under the previous structure, total costs for buying and selling were 1,73 percent and 2,48 percent and the new structure will see stockbroking companies charged 1,69 percent and 2,44 percent on buying and selling respectively.

The charges will further go down to 1,693 percent and 2,44 percent on either side with effect from July 1 next year.

Brokerage fees will be 0.92 percent from 1 percent.

The Central Securities Depositary levy will be charged at 0.12 percent on either side while the investor protection levy will fall away for the first year to allow for the business to stabilise. It will be re-introduced with effect from July 1, 2015at 0,1 percent on either side.

Securities and Exchange Commission and the Zimbabwe Stock Exchange levies were pegged at 0,171 percent and 0,12 percent respectively. Stamp duty of 0,25 percent will be charged only on the buyer's side.

Capital Gains Withholding Tax of 1 percent will be charged on seller's side.

Every central securities depository shall pay a levy of 0,5 percent on monthly revenue to the Securities and Exchange Commission.

"The levy shall be remitted to the Commission by not later the 10th day of the month following the months in respect of which the levy is paid," read part of the Statutory Instrument 108 of 2014 published of Friday.

In addition, every licensed custodians and transfer secretaries will also be required to pay 0,5 percent and 0,35 percent of their gross monthly income to the commission respectively.
- The Herald


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