Regulatory Alerts2022-08-09
Directive No 1 of 2022 – Secondary Market Bond Trading
The Securities and Exchange Commission issued Directive No. 1 of 2022 to mandate full yield disclosure for all secondary bonds traded locally and offshore. The directive requires Dealers and Custodians to ensure transacting parties disclose the yield for each bond trade in accordance with the Securities Act of 2016. This mandate standardizes financial reporting across the capital markets and enhances investor transparency by making yield data consistently available through designated reporting entities.
# SECURITIES AND EXCHANGE COMMISSION
*Protecting Investors in the Capital Markets*
## THE SECURITIES ACT, 2016
*(Act No. 41 of 2016)*
### FULL DISCLOSURE ON YIELDS FOR ALL SECONDARY BONDS TRADED LOCALLY AND OFF-SHORE
**DIRECTIVE NO. 1 OF 2022**
Pursuant to Section 212 of the Securities Act, No. 41 of 2016 (“the Securities Act”), the Securities and Exchange Commission (“the Commission”) hereby **DIRECTS** all Dealers and Custodians to ensure full disclosure as per the financial reporting requirements on bond trades as prescribed under the Securities Act and the Rules made thereunder.
In particular, the yield for each bond traded must be disclosed by transacting parties to facilitate full disclosure by the reporting entities – Dealers and Custodians.
For any clarification you may have, please do not hesitate to contact the Commission on:
Telephone: +260 211 227 012 / 222 368 / 222 369
Email: info@seczambia.org.zm
Kindly be guided accordingly.
Dated at Lusaka this 9th day of August 2022.
[Signature]
PHILLIP K CHITALU
CHIEF EXECUTIVE OFFICER
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