ZSE flexes muscles on external auditors requirement

Companies listed on the Zimbabwe Stock Exchange (ZSE) are no longer required to have their interim results reviewed by an external auditor, the bourse announced this week.

Previously, companies were required to submit their audited results to ZSE and VFEX which saw some firms requesting extensions because auditors had not completed their work.

“Issuers are now required to submit their unaudited half-year interim reports directly to the ZSE without the need for review by external auditors,” ZSE said, in a separate statement on Monday.

“However, if an issuer elects to have their half-year interim reports reviewed by external auditors in accordance with section 38 (1)(a), they must adhere to the requirements prescribed in that section.

“This waiver will remain in effect for a period of two years from the effective date.”

Section 37(1) refers to a section found in Statutory Instrument (SI) 134 of 2019, titled “Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules 2019”.

Under this section, it states:

“Where an issuer fails to publish interim financial statements by the day following the due date of issue of the listed company’s interim or preliminary report, the issuer will be granted a period of one month from the due date to issue its interim or preliminary report, failing which the company’s listing will be suspended in terms of section 7 (unilateral suspension).”

The Zimbabwe Stock Exchange Limited (‘ZSE’) is a licensed securities exchange in terms of the Securities and Exchange Act (24:25), with a core mandate to facilitate long term capital raising through listing of securities as well as offering secondary market securities trading and issuer regulation services.

Zwnews