Government suspends international trading of shares for 3 companies

By ZBC Reporter
The government has with immediate effect suspended the international trading of shares in three companies namely Old Mutual, PPC limited and Seedco International for a period of 12 months ending 12 March 2021.
In an Extraordinary Government Gazette published this Sunday titled Exchange Control Suspension of Fungibility of Certain Shares 2020, all securities market intermediaries have been directed to institute an audit of all transaction inflows on dual-listed shares concluded on or after June 1, 2021.
Shares listed on more than one stock exchange, known as fungible shares, have largely been blamed for driving foreign parallel market activities, therefore, creating market distortions. The highly inflated Old Mutual Implied Rate has for a long time been used as a reference exchange rate instead of the official interbank leading to market distortions.