PLANS to set up a monitoring panel that would review all publications by listed companies are at an advanced stage, Zimbabwe Stock Exchange (ZSE) chief executive Emmanuel Mun
yukwi has said.
Munyukwi said the rationale behind the monitoring panel was to ensure that listed companies published correct information and that the listed concerns are transparent in the way they conduct business.
The ZSE, according to Munyukwi, was working with the Public Accountants and Auditors Board whose membership included Association of Chartered Certified Accountants (Acca), Chartered Institute of Management Accountants (Cima), Institute of Chartered Secretaries (ICS) and the Institute of Chartered Accountants of Zimbabwe (Icaz).
The ZSE, which used to work with only Icaz, has broadened the constitution to involve other sections of the accounting profession to embrace the whole fraternity to ensure a wider pool of professional resources.
“We are working together with the representative board of the accounting professionals to set up the monitoring panel whose mandate is to ensure that listed companies are transparent in information concerning all documents published by listed companies including half year and full year results,” Munyukwi said.
The composition and terms of reference of the monitoring panel, which will also serve to advise the ZSE on matters relating to accounting, auditing and publishing of accounting information, was being worked out, according to Munyukwi.
“We supervise and monitor the trading process and the resultant publications to ensure transparency in the market and that no unfair practices are done to manipulate the market,” he said.
Unfair practices could come in the form of concealing essential market information in the conduct of business.
“The stock exchange provides a properly constituted and regulated environment that ensures market integrity and fairness among stock market participants,” Munyukwi said. Any off-market deals and unethical criminal activities are dealt with within the framework of the rules and regulations governing stock market transactions in Zimbabwe.
Currently all results are scrutnised by the RBZ before they are published.
Munyukwi said the panel also provided the bourse, the opportunity to formalise relations with the accounting firms.
The move is seen as an attempt by the ZSE to keep a closer watch on the listed companies.