OLD MUTUAL SECURITIES

Transcription

1 OLD MUTUAL SECURITIES

2 Terms and Conditions Old Mutual Securities Company Profile Old Mutual Securities Zimbabwe (Private) Limited (OMSEC) is registered as a Stock Broking firm under the Securities Commission of Zimbabwe (SECZ). OMSEC is licensed in terms of the Securities Act [Chapter 24:25] and the Securities (Registration, Licensing and Corporate Governance) Rules. OMSEC offers the following services; Trading Buying and selling shares on behalf of clients on the Zimbabwe Stock Exchange (ZSE) Research Company specific and macro-economic research and investment recommendations. OMSEC research is accessible at our offices, on our website and is also distributed via to our active clients. It includes the following; Daily price sheet Weekly review Quarterly Fund Managers Digest Company Commentaries The ZSE foreign trades statistics The Quarterly ZSE listed companies corporate events In accordance with the Securities Commission (SECZ) and the ZSE requirements, OMSEC adheres to a strict Know Your Client (KYC) policy. The following are mandatory for opening a share account; 1. Individual / retail client Completed and signed account opening Copy of national identity document / passport Proof of residence current utilities bill / lease agreement / certified affidavit Banking details for settlement purposes 2. Corporates Completed and signed account opening Certificate of Incorporation, CR14 & CR6 Resolution by Board of Directors of the company List of authorized signatories Copies of IDs of Directors and authorized dealers Proof of residence for Directors and authorized dealers Banking details for settlement purposes The weekly review and quarterly fund manager s digest are accessible on our website Advisory Services - Corporate action advisory services to listed companies

3 Placing orders Role of the Zimbabwe Stock Exchange Orders can be placed in person at our offices or via the telephone and . The following conditions will apply; Buy orders All buy orders are prefunded, meaning the order will only be executed upon confirmation of receipt of funds by OMSEC Sell orders All sell orders have to be accompanied by a share certificate and signed transfer Facilitates raising of capital for listed companies Provides regulated plat for buying and selling shares Provides rules & regulations that guide the listing and continued listing of companies Regulates conduct of stockbrokers. Provides investor awareness and education NB Settlement is on a T+7 cycles. This Transaction costs on the ZSE means that when you sell your shares you will be paid out 7 days from the date of sale. Buying and selling shares on the ZSE involves some fees. Fees are determined from time to time by the Ministry of Finance. The fees are charged based on the The Zimbabwe Stock Exchange (ZSE) transaction s value. The current standard charges for buying and selling shares on the Zimbabwe Stock Exchange are as follows: The ZSE is an equities market and it provides a market Buying Selling place where shares of publicly listed companies can be traded. The ZSE is licensed to operate a stock market in terms of the Securities Act (Chapter 24:25). It provides a regulated plat where listed entities can raise capital to expand their business. Brokers Commission 1.00% 1.00% Stamp Duty 0.25% 0.00% Capital Gains Tax 0.00% 1.00% Securities Commission 0.18% 0.18% Investor Protection Levy 0.05% 0.05% Value Added Tax (VAT) 0.15% 0.15% Trading on the ZSE is via an auction system whereby stockbrokers convene to trade at the exchange at specific times, which is currently 1000am 1130am. ZSE Levy 0.10% 0.10% Total 1.73% 2.48% Basic Charge $2.30 $2.30

4 3. Old Mutual Zimbabwe Group Employees Employee Staff Code Banking details for settlement purposes Sell orders All sell orders have to be accompanied by the original B Class share certificate and signed transfer address Placing orders OTC Transaction Costs Orders can be placed in person at our offices or via the telephone or . The following conditions will Buying Selling apply; Brokers Commission 1.00% 1.00% Stamp 0.25% 0.00% Buy orders All buy orders are prefunded, meaning the order will only be executed upon confirmation of receipt of funds by OMSEC. Buyers can Capital Gains Tax 0.00% 5.00% Value Added Tax (VAT) 0.15% 0.15% Total 1.40% 6.15% Basic Charge $2.30 $2.30 deposit the funds into our bank account at CABS Bank Account name : CABS : OLD MUTUAL SECURITIES NB: For buy transactions the transaction costs are added on top of the consideration and for sale transactions, charges are deducted from the consideration amount. Account number :

5 Note: Breakeven is at 4.32% which means that once The OTC terms of business are as follows; you buy a share you only start making money when the share price has gone up by at least 4.32%. Facility only open to indigenous Zimbabwean investors Old Mutual B Class Shares KYC requirements for participants Over The Counter (OTC) Market 1. Individual / retail client In response to the requirements of the Indigenisation and Economic Empowerment Act, [Chapter 14:33] and within the confines of the indigenisation plan for Old Mutual Zimbabwe Limited (OMZIL), the shareholders of OMZIL agreed and approved that 25% of the issued and fully paid ordinary shares in the capital of OMZIL be converted into issued and fully paid B Class shares and that the entirety of the B Class Completed and signed account opening Copy of national identity document / passport Proof of residence current utilities bill / lease agreement / certified affidavit Banking details for settlement purposes, address shares be availed for the beneficial interest of approved and qualifying indigenous beneficiaries that include employees of the Old Mutual Zimbabwe Group, certain pensioners, qualifying persons of Zimbabwe and certain identified strategic partners indigenous to Zimbabwe. 2. Corporates Completed and signed account opening Certificate of Incorporation, CR14 & CR6 Resolution by board of directors of the In order to allow for a market for and orderly trading of the Old Mutual B Class shares and to ensure continuing compliance with the Indigenisation Regulations, it was considered appropriate that the trading of the shares be handled through an OTC trading facility housed at OMSEC. company List of authorized signatories, Copies of IDs of directors and authorized dealers Proof of residence for directors and authorized dealers Banking details for settlement purposes, address

6 E-services on the B Class shares ZSE Market Capitalisation it is the total market The daily trading statistics can be viewed on our website Investors are encouraged to provide their addresses when they open accounts which will enable them to receive up to date trading statistics. capitalization of all listed companies on the ZSE. Index - it is a statistical market perance tool that is measured in points. It is used to measure the overall or aggregate perance (i.e. upward or downward movement in prices) of a class or sector of listed companies. An investor OTC share calculator will be available on the local intranet website or from enquiries at the Green Zone. The calculator can be used by sellers to accurately calculate the value of their shares by inputting the number of shares and the price into the template provided. Buyers can use the calculator to determine how much it would cost them to buy a certain number of shares or how much they would need to spend to acquire a specific number of shares. Industrial Index index that groups together and tracks the perance of listed industrial companies. Mining Index index that groups together and tracks the perance of listed mining companies. Rights issue is an offer given to a company s shareholders to buy a proportional number of additional shares at a given price. Bonus issue is an offer of free additional shares to existing shareholders which is sometimes made by companies as an alternative to increasing the dividend pay-out. It is also known as a scrip issue or Market Terminology capitalization issue. Bid/Buy it is the price at which you are prepared to pay for a share. Offer/Sell it is the price at which you are prepared to sell a share. Price/Sales the price at which the share traded on the day. Volume refers to the number of shares that traded or changed hands on the day. Market Capitalisation the value of the company listed on the Stock Exchange. It is calculated as follows: Closing price X number of the company s issued shares.

7 OMSEC Contact Details Dealing Contacts Research Contacts Reggies Mtambo Equities Dealer 1st Floor 3 Anchor House 54 Jason Moyo Avenue, Harare Phone: , , Fax: reggiesm@oldmutual.co.zw Simbarashe Mangwendeza Research Analyst 1st Floor 3 Anchor House 54 Jason Moyo Avenue, Harare Phone: , , Fax: simbarashem@oldmutual.co.zw Tevian Chauraya Equities Dealer Webpage: 1st Floor 3 Anchor House 54 Jason Moyo Avenue, Harare Phone: , , Fax: tevianc@oldmutual.co.zw

8