Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019

S.I. 134 of 2019
Statutory Instrument 134 of 2019.
[CAP. 13:22
Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 ARRANGEMENT OF SECTIONS
PART I
Preliminary
Section

1. Title.
2. Interpretation.
   PART II
   Authority of the ZSE
3. General powers of ZSE.
4. Listings committee.
5. Annual revision of official list.
6. Power of censure.
7. Unilateral suspension.
8. Suspension on request.
9. Requirements after suspension.
10. Termination initiated by the ZSE.
11. Termination on request.
12. Removal from the official list of redeemable preference shares or debentures.
13. Application of fines.
    Sub-Part a: Suspension
14. Power to require information.
15. Publication.
    PART III
    Sponsoring brokers
16. Application of Part.
17. Sponsoring brokers.
18. Criteria for registration as sponsoring broker.
19. Appointment.
20. Responsibility of a sponsoring broker.
21. Applications for listings.
22. Directors.
23. Financial reporting procedures.
24. Profit forecast.
    DISTRIBUTED BY VERITAS e-mail: veritas@mango.zw; website: www.veritaszim.net Veritas makes every effort to ensure the provision of reliable information, but cannot take legal responsibility for information supplied.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019
Section
25. Working capital statement.
26. More than one sponsoring broker.
27. Direct access.
28. Action against a sponsoring broker.
29. Responsibilities of sponsoring brokers.
PART IV
Continuing Obligations
30. Application of Part.
31. Appointment of sponsoring broker.
SUB-PART A: GENERAL OBLIGATION OF DISCLOSURE OF ISSUER
32. Material price sensitive information.
33. Confidentiality.
SUB-PART B: DISCLOSURE OF PERIODIC FINANCIAL INFORMATION
34. Dividends and interest.
SUB-PART C: INTERIM AND PRELIMINARY REPORTS
35. Interim reports.
36. Preliminary reports.
37. Procedure for non-compliance of publishing interim financial statements.
38. Requirement for review by auditors.
39. Annual financial statements.
40. Procedure for non-compliance under annual financial statements.
41. Modified auditor’s opinion.
42. Notification relating to capital.
43. Cash companies.
SUB-PART D: RIGHTS AS BETWEEN HOLDERS OF SECURITIES
44. Equality of treatment.
45. Pre-emptive rights.
46. Waiver of pre-emptive rights.
47. Profit warranties.
48. Issues by major subsidiary other than on listing.

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Section
49. Options for cash.
50. Shareholder spread.
51. Notification.
SUB-PART E: COMMUNICATION WITH SECURITY HOLDERS
52. Prescribed information to be given to security holders.
53. ZSE Data Portal.
SUB-PART F: PUBLICATION
54. Press announcements.
55. Requirements for circulars and pre-listing particulars.
56. Transfer or receiving and certification office and transfer offices for other securities exchanges.
57. Proxy forms.
58. Other classes of security.
59. Communications with holders of bearer securities.
60. Documents of title.
61. Temporary documents of title.
62. Receipts.
SUB-PART G: MISCELLANEOUS OBLIGATIONS
63. Redemption of listed redeemable securities.
64. Transfer from one section of the list to another section.
65. Listing and other fees.
66. Directors.
67. Dealing in securities: directors and employees of listed companies.
68. Clearance to deal.
69. Changes in auditors.
SUB-PART H: CONTINUING OBLIGATIONS
70. Companies quoted on another securities exchange.
71. Information to be processed by the ZSE.
72. Disclosure of beneficial interests in securities.
73. Corporate governance.
74. Liquidation and corporate rescue.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019
PART V
Conditions for Listing
75. Introduction.
76. Discretion of the ZSE.
SUB-PART A: CONDITIONS APPLICABLE TO ALL MARKETS
77. Applicant to be duly constituted.
78. Directors.
79. Listing of subsidiary companies or assets.
80. Financial information.
81. Status of securities.
82. Transferability of securities.
83. Low and high voting instruments.
84. Convertible securities.
85. Unlisted securities.
86. Public shareholders.
87. Main Board listing criteria.
PART VI
Methods and Procedures of Bringing Securities to Listing SUB-PART A: METHODS OPEN TO APPLICANTS
88. Applicants without equity securities already listed.
89. Applicants with or without equity securities already listed.
90. Applicants with equity securities already listed.
SUB-PART B: INTRODUCTIONS
91. Requirements for introductions.
92. Documents to be submitted to the ZSE for introductions.
93. Documents to be published for an introduction.
SUB-PART C: PLACINGS
94. Specific requirements for a placing.
95. Documents to be submitted to the ZSE for a placing.
96. Documents to be published for a placing.

S.I. 134 of 2019
SUB-PART D: OFFERS FOR SALE OR SUBSCRIPTION
97. Specific requirements for offer for sale or subscription.
98. Underwriting of offer for sale or subscription.
99. Commission payable.
100. Over-subscriptions.
101. Documents to be submitted to the ZSE by listed companies.
102. Documents to be submitted to the ZSE by new applicants.
103. Documents to be published.
104. Timetable for publication of documents.
SUB-PART E: RENOUNCEABLE OFFERS
105. Renounceable offers.
106. Ability to trade.
107. Shareholder spread.
108. General requirements for renounceable offer.
109. Documents to be submitted to the ZSE in respect of renounceable offer.
110. Documents to be published in respect of renounceable offer.
111. Timetable.
SUB-PART F: RIGHTS OFFERS
112. Specific requirements for rights offers.
113. Underwriting.
114. Excess security applications.
115. General provisions regarding rights offers.
116. Documents to be submitted to the ZSE.
117. Documents to be published or circulated.
118. Timetable for rights offers.
119. Specific requirements for claw-back offers or issues.
120. Specific requirements for capitalisation issues.
121. Documents to be submitted to the ZSE.
122. Documents to be published.
123. Timetable for capitalisation issue.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 SUB-PART G: SCRIP DIVIDEND AND CASH DIVIDEND ELECTIONS
124. Description.
125. Specific requirements for scrip dividends and cash dividend election.
126. Documents to be submitted to the ZSE.
127. Documents to be published.
128. Timetable for scrip dividend.
SUB-PART H: ISSUES FOR CASH
129. Specific requirements issues for cash.
130. Voting.
131. Documents to be submitted to the ZSE.
132. Documents to be published.
133. Announcements.
SUB-PART I: ACQUISITION OR MERGER ISSUES
134. Description
135. Specific requirements.
136. Documents to be submitted to the ZSE.
137. Documents to be published or circulated.
SUB-PART J: VENDOR CONSIDERATION PLACINGS
138. Specific requirements.
139. Exercise of options to subscribe for securities (including options in terms of executive and staff share
schemes).
140. Issues with participating or conversion rights.
SUB-PART K: REPURCHASE OF SECURITIES
141. Description.
142. Requirements for specific authority to repurchase securities.
143. Circular.
144. Announcements of offers for repurchase of securities.
145. Requirements for general authority to repurchase securities.
146. Notice of general authority to repurchase.

S.I. 134 of 2019
SUB-PART L: ANNOUNCEMENTS FOLLOWING REPURCHASE OF SECURITIES
147. Open Market.
SUB-PART M: FINANCIAL INFORMATION
148. Historical Financial Information.
SUB-PART N: PURCHASE OF SECURITIES OTHER THAN EQUITY SHARES
149. Notification of decision to repurchase.
150. Notification of repurchases, early redemptions and cancellations.
151. Period between repurchase and notification.
152. Convertible securities.
153. Reduction of share capital.
154. General authority to reduce share capital.
155. Circular for reduction of share capital.
SUB-PART O: GENERAL
156. Exchange control approval.
157. Securities registered in the name of nominee companies.
158. Share certificates.
159. Over-allotment size.
160. Acceptance of late postal deliveries.
161. Odd-lot offers.
162. Shares issued to sponsoring brokers and advisers in lieu of fees.
PART VII
Pre-Listing Statements
163. Requirement for pre-listing statement.
164. Responsibility for pre-listing statement.
165. Form and content for pre-listing statement.
166. Shareholder approval.
167. Formal approval for publication.
168. Supplementary pre-listing statements.
169. Exclusion of information.
170. Exclusion of significant contract from disclosure.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019
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171. Issues not requiring pre-listing statements.
172. Acquisition and merger issues.
173. Requirements for pre-listing statements regarding acquisition and merger issues.
174. Publication and distribution of pre-listing statements to share holders.
175. New applicants and issuers not issuing prospectus.
PART VIII
SUB-PART A: LISTING PARTICULARS
176. Applicants name, address and business.
177. Share capital.
178. Borrowing powers.
179. Loans receivable.
180. Options or preferential rights in respect of securities.
181. Controlling shareholders.
182. Major shareholders.
183. Directors, managers and advisers.
184. Directors and management.
185. Secretary.
186. Auditor, legal practitioner, banker, stockbroker, trustee, underwriter (including sub-underwriter where
applicable) and expert.
187. Amounts paid or payable to promoter.
188. Commissions paid or payable in respect of underwriting.
189. Preliminary expenses and issue expenses.
190. Interest of directors and promoter.
191. Directors’ interests in securities.
192. Directors’ interests in transactions.
193. Responsibility statement.
194. Responsibility of directors, managers and advisers.
SUB-PART B: SECURITIES FOR WHICH APPLICATION IS BEING MADE
195. Purpose and particulars of the issue or offer.
196. Timing of subscription lists.
197. Issue price.

S.I. 134 of 2019
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198. Minimum subscription.
199. Lodging of prospectus with the Registrar of Companies.
200. Disclosure of Authorisations.
201. Dividends disclosure.
202. Market value of securities.
203. Rights offers, capitalisation issues and scrip dividends.
204. Simultaneous issues.
205. Over-subscriptions.
SUB-PART C: GROUP’S ACTIVITIES
206. Disclosure of general history of applicant.
207. Property acquired or to be acquired by applicant.
208. Disposal of property by applicant.
209. Disclosure of litigation proceedings against applicant.
210. Accountants’ reports.
211. Report of historical financial information.
212. Disclosure of acquisitions made from proceeds.
213. Statement on working capital.
214. Statement on changes in financial or trading position of applicant’s working capital.
215. Profit forecasts and pro-forma statements.
216. Material contracts.
217. Code of corporate practice and conduct.
218. Experts’ consents.
SUB-PART D: INSPECTION OF DOCUMENTS
219. Documents and consents to be available for inspection.
220. Disclosure requirements relating to vendors.
PART IX
SUB-PART A: FINANCIAL INFORMATION
221. Report of historical financial information.
222. When report of historical financial information is required.
223. Financial information to be presented.
224. Additional information on historical financial information.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019
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225. Commentary on historical financial information.
226. Periods.
227. Adjustments of financial information.
SUB-PART B: PRO FORMA FINANCIAL INFORMATION
228. General.
229. Nature of pro forma information.
230. Presentation of pro forma financial information.
231. Accounting policies to be adopted in preparing and presenting pro forma financial information.
232. Selection of periods.
233. Subsequent events.
234. Accounting periods.
235. Unadjusted information.
236. Adjustments to financial statements.
237. Continuing effects.
238. Earnings and headline earnings per share.
239. Profit forecasts and estimates.
SUB-PART C: REQUIREMENTS RELATNG TO AUDIT
240. Circumstances when auditors’ report is required.
241. The auditor.
242. Contents of auditors’ report.
243. Date of auditors’ report.
244. Review of prospectus or pre-listing statement or circular.
245. Consent letters.
246. Supplementary information.
247. Change of financial year.
248. Basis of presentation.
249. Financial reporting monitoring panel.
250. Use of financial advisers by issuers.
PART X
Transactions
251. Application of Part.
252. References to transactions.
253. Categorisation and explanation of terms.

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254. Percentage ratios.
255. Consideration.
256. Indemnities and similar arrangements.
257. Aggregation of transactions.
258. Category 3 requirements.
259. Category 2 requirements.
260. Category 1 requirements.
261. Reverse take-over requirements.
262. Exceptions to reverse take-over requirements.
263. Contents of Category 1 and Category 2 circulars.
264. Takeovers and mergers.
PART XI
Transactions with Related Parties
265. Application of Part.
266. Definitions.
267. Consultation with the ZSE.
268. Requirements for a related party transaction.
269. Transactions not regarded as related party transactions.
270. Transactions relating to small related party transactions.
271. Aggregation.
272. Contents of circular.
PART XII
Circulars, Pre-Listing Statements, Prospectus and Press Announcements
273. Application.
274. Contents of all circulars.
275. Formal approval.
276. Listing by introductions.
277. Press announcements for introductions.
278. Circular.
279. Placings.
280. Offers for sale or subscription.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019
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281. Press announcements for offers for sale or subscription.
282. Renounceable offers.
SUB-PART A: RIGHTS OFFERS AND CLAW-BACK OFFERS
283. Publication requirements.
284. Press announcements for rights offers.
285. Circular.
286. Letters of allocation.
SUB-PART B: CAPITALISATION ISSUES AND SCRIP DIVIDENDS
287. Publication requirements.
SUB-PART C: ISSUES FOR CASH
288. Publication requirements for issue of cash.
289. General issue for cash.
SUB-PART D: REPURCHASE OF SECURITIES
290. Specific repurchases.
291. General repurchases.
SUB-PART E: PAYMENTS TO SECURITIES HOLDERS
292. Specific payments.
293. General payments.
SUB-PART F: VOLUNTARY LIQUIDATION
294. Circular on voluntary liquidation.
SUB-PART G: REDEMPTION OF SECURITIES
295. Circular of redemption of security.
SUB-PART H: CHANGE OF NAME OF AN ISSUER
296. Circulars of change of name of an issuer.
SUB-PART I: SUB-DIVISION OR CONSOLIDATION OF SECURITIES
297. Circulars on sub-division or consolidation.
SUB-PART J: REDEMPTION OF LISTED REDEEMABLE SECURITIES
298. Requirements.

S.I. 134 of 2019
SUB-PART K: CHANGE OF TRANSFER SECRETARIES
299. Requirements.
SUB-PART L: CAUTIONARY ANNOUNCEMENTS
300. Matters to be disclosed in cautionary announcements.
301. Progress reports following cautionary announcement.
302. Withdrawal of cautionary announcement.
SUB-PART M: GENERAL MATTERS RELATING TO CIRCULARS, ANNOUNCEMENTS AND DOCUMENTS
303. Embargo placed on company announcements or circulars.
304. Name or logo of broking firm on advertisements and documents.
305. Circulars and announcements to be sent to all securities holders.
306. Communication with holders of bearer securities.
307. Responsibility of issuer for disseminating information.
308. Availability of pre-listing statements or circulars.
SUB-PART N: ISSUE OF SHARES UNDER CONTROL OF DIRECTORS
309. Issue of authorised but unissued shares under control of directors.
SUB-PART O: ODD-LOT OFFERS
310. Requirements for odd-lot offer.
PART XIII
Mineral Companies
311. Definitions.
312. General.
SUB-PART A: EXPLORATION COMPANIES
313. Criteria for listing.
314. Contents of pre-listing statements, listings particulars, prospectuses and circulars prepared by exploration
companies.
315. Competent persons’ reports.
316. Press announcements and circulars.
SUB-PART B: MINING COMPANIES
317. Criteria for listing.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019
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318. Contents of pre-listing statements, listings particulars, prospectuses and circulars prepa red by mining
companies.
319. Competent persons’ reports.
320. Press announcements and circulars.
PART XIV
Property Companies
321. Definitions
322. Additional information for listing.
SUB-PART A: VALUATION REPORTS
323. Requirement for a valuation report.
324. Valuation report.
325. Valuations of property in course of development.
326. Valuation of property occupied for purposes of business: investment property.
327. External property.
328. Rentals used in valuations.
329. Other general matters.
330. Summary of valuations.
SUB-PART B: PROPERTY UNIT TRUSTS
331. Nature of property unit trusts.
332. Management company.
333. Trust deed.
334. Additional information for listing unit trusts.
PART XV
Special Types of Issuers
SUB-PART A: PYRAMID COMPANIES
335. Classification as pyramid company.
336. Listing of pyramid companies.
SUB-PART B: REDEVELOPMENT ENTITIES
337. General.
338. Criteria for listing of redevelopment entities.

S.I. 134 of 2019
SUB-PART C: INDUSTRIAL — DEVELOPMENT STAGE SECTOR
Section
339. General.
340. Procedure for listing industrial development sector.
341. Criteria for listing.
342. Miscellaneous.
SUB-PART D
343. Bonds disclosure requirements.
PART XVI
Investment Entities
344. Application of Part.
345. General.
346. Criteria for listing.
347. Contents of pre-listing statements and prospectuses.
348. Annual financial statements.
349. Investment Policy statement (IPS).
PART XVII
Documents to be Submitted to the Zse
350. Application of Part.
351. General information.
352. Documents to be submitted through sponsoring broker.
353. Time at which documents are deemed to have been lodged.
SUB-PART A: PROCEDURE FOR APPROVAL OF DOCUMENTS
354. Initial submission for informal comments.
355. Informal approval.
356. Formal approval.
357. Annotation of drafts.
358. Documents requiring approval.
SUB-PART B: DOCUMENTS TO BE SUBMITTED BY NEW APPLICANTS
359. Documents to be submitted.
360. Part 1 documents.
361. Part II documents.
362. Part III documents.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 SUB-PART C: DOCUMENTS TO BE SUBMITTED BY ISSUERS
363. Offers for sale and subscription.
364. Rights and claw-back offers.
365. Capitalisation issues and scrip dividends.
366. Issues for cash.
367. Acquisitions and disposals.
368. Periodical returns.
SUB-PART D: DOCUMENTS IN RESPECT OF VARIOUS TRANSACTIONS
369. Extensions of listed options.
370. Expiry of listed options on securities or on other conversion rights.
371. Exchange Control approval.
372. Change of name of listed company.
373. Share incentive schemes.
374. Repurchase of securities.
375. Payments to securities holders.
376. Subdivision or consolidation of securities.
377. Odd-lot offers.
378. Letters of application and letters of allotment.
PART XVIII
Fees
379. Original listing fees.
380. Additional listing fee.
381. Annual sustaining and inspection fees.
PART XIX
Dual Listings and Listings by Foreign companies
382. General.
SUB-PART A: PRIMARY LISTINGS
383. Conditions for primary listing.
SUB-PART B: SECONDARY LISTINGS
384. Conditions for secondary listing.

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385. Pre-listing statements.
386. Continuing obligations.
387. Dual listings.
388. Foreign companies.
389. Dual listed companies’structure.
PART XX
Depository Receipts
390. Definitions.
391. General.
392. Sponsoring broker.
393. Criteria for the listing of DRs.
394. The deposit agreement.
395. Pre-listing statements.
396. Continuing obligations.
397. Documents to be submitted to the ZSE on application for listing.
398. Announcements.
PART XXI
Sustainability Information and Disclosure
399. Board responsibility.
400. Sustainability reporting.
401. Reporting standards and guidelines.
402. Industry or sector specific reporting requirements.
403. Disclosure of sustainability information.
404. Independent assurance.
First Schedule: Application for listing by new applicants.
Second Schedule: Application for listing of securities resulting from rights offers, claw-back offers and renounceable offers. Third Schedule: Application for listing of securities resulting from capitalisation issues or scrip dividends. Fourth Schedule: Application for listing of securities resulting from acquisitions, take-overs, mergers, share incentive schemes and convertible securities. Fifth Schedule: Independent fairness opinions.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 Sixth Schedule: Application for listing of securities resulting from an issue for cash. Seventh Schedule: General undertaking. Eighth Schedule: Statutory declaration. Ninth Schedule: Mechanical signatures on certificates of title. Tenth Schedule: Requirements for Articles of Association. Eleventh Schedule: Requirements for certificates of title. Twelfth Schedule: Requirements for option certificates in respect of listed option. Thirteenth Schedule: Requirements for certified deeds and other temporary documents of title. Fourteenth Schedule: Requirements for executive and staff share schemes. Fifteenth Schedule: Requirements for trust deeds in respect of debentures. Sixteenth Schedule: Sponsoring Broker. Seventeenth Schedule: Declaration by sponsoring broker. Eighteenth Schedule: Annual compliance certificate. Nineteenth Schedule: Corporate actions and other regulatory information submission. Twentieth Schedule: Standard wording for cautionary announcements. Twenty-first Schedule: Director’s declaration. Twenty-second Schedule: Application for the cancellation of shares arising out of a repurchase of shares. Twenty-third Schedule: Fees. Twenty- fourth Schedule: Guidance on working capital. Twenty-fifth Schedule: Company secretary information. Twenty-sixth Schedule: Fines and Penalty charges on listed companies. Twenty-seventh Schedule: Accounting frameworks acceptable to the ZSE. Twenty-eighth Schedule: Corporate rescue. Twenty-ninth Schedule: Detailed requirements for take over and mergers. IT is hereby notified that the Securities and Exchange Commission has, in terms of section 65(3) of the Securities and Exchange Act [Chapter 24:25], approved the following regulations:—
PART I
Preliminary
Title

1. These rules may be cited as the Securities and Exchange (Zimbabwe Stock Exchange Listings
   Requirements) Rules, 2019.
   Interpretation
2. In these rules—
   “acquisition issue” means an issue of securities in consideration for an acquisition of assets which does not include the extinguishing of a liability, obligation or commitment, and includes an issue of securities for an acquisition of, or merger with, another company in consideration for the securities of that other company;

S.I. 134 of 2019
“Act” means the Securities and Exchange Act [Chapter 24:25]; “acting in concert” means two or more persons co-operating for a common purpose pursuant to an agreement, arrangement or understanding, whether formal or informal, between them; and associates are deemed to be so co-operating unless otherwise proved; “admission” means the admission of securities to listing on the ZSE, and “admitted” shall be construed accordingly; “announce” means a statement made formally and publicly to the press for mass distribution, if required in terms of Part XII; “applicant” means an issuer, including an issuer of specialist securities and a new applicant, which is proposing to apply, or is applying, for admission of any of its securities; “associate”— (a) in relation to an individual, means— (i) a member of the individual’s family; or (ii) the trustees of a trust of which a member of the individual’s family is a beneficiary or discretionary beneficiary, other than a trust which is either an occupational pension scheme or an employees’share scheme which does not, in either case, have the effect of conferring benefits on the individual or members of the individual’s family; or (iii) a company in whose equity securities the individual or any person or trust referred to in subparagraph (i) or (ii) are directly or indirectly beneficially interested or have a conditional, contingent or future entitlement to become beneficially interested and would, on the fulfilment ofthe condition orthe occurrence ofthe contingency, be able— A. to exercise or control the exercise of 20 per centum or more of the votes capable of being cast at general meetings on all, or substantially all, matters; or B. to appoint or remove directors holding a majority of voting rights at board meetings on all, or substantially all, matters; or (iv) any corporate entity in which the individual or a member of the individual’s family are beneficially interested, where the individual or member is able to exercise or control the exercise of 20 per centum or more of the votes capable of being cast at members’ meetings on all, or substantially all, matters; (b) in relation to a company, means— (i) a subsidiary or holding company of the company; or (ii) any company which exercises, or over which the company exercises, a degree of control which is less than the degree of control exercised over a subsidiary or by holding company respectively; or (iii) any other company which, together with the company, are both directly or indirectly controlled by a third party; or (iv) any company whose directors are accustomed to act in accordance with the company’s directions or instructions; or (v) any company whose capital the company and any other company referred to in subparagraphs (i) and (ii) would on the fulfilment of a condition or the occurrence of a contingency be interested in the manner described in subparagraph (ii); or (vi) any trust that the company and any other company referred to in subparagraphs (i) and
(ii), individually or taken together, have the ability to control 35 per centum of the votes of the trustees or to appoint 35 per centum of the trustees, or to appoint or change 35 per centum of the beneficiaries of the trust; “beneficial”, in relation to— (a) any interest in a security, means the de facto right or entitlement to receive the income payable or other economic right in respect of that security or to exercise or cause to be exercised any or all of the voting, conversion, redemption or other rights attaching to that security; (b) any other interest, means the obtaining of any benefit or advantage, whether in money, kind, or otherwise, as a result of the holding of that interest;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 and includes, in respect of the interests described in paragraphs (a) and (b), the de facto right or entitlement to dispose of or cause the disposal of the company’s securities, or any part of a distribution in respect of the securities; “beneficial owner” in relation to a security, means the person or entity with any one or more of the following— (a) the de facto right or entitlement to receive any dividend or interest payable in respect of that security; or (b) the de facto right to exercise or cause to be exercised in the ordinary course of events, any or all of the voting, conversion, redemption or other rights attached to such security; or (c) the de facto right or entitlement to dispose or cause the disposal of the company’s securities or any part of a distribution in respect of the securities; “business day” means any day except a Saturday, Sunday or any public holiday; “capitalisation issue” means an issue of fully paid shares capitalised from–– (a) a company’s share premium; (b) capital redemption reserve; (c) fund reserves; or (d) a combination of any of the above to existing shareholders of the company without payment in proportion to their shareholdings at a specific date, but does not include a dividend issued en specie; “cash company” means an issuer, other than an investment entity envisaged by Part XVI, whose assets, to the satisfaction of the ZSE, consist wholly or mostly of cash because it has disposed of all or a substantial part of its business or otherwise ceased to have a business of sufficient substance to support its market capitalisation; “category 1, category 2 or category 3” refers to a transaction that is principally an acquisition or disposal by an issuer as described in Part X; “circular” means any document or advertisement issued to holders of listed securities by an issuer of securities, but excludes listing particulars, annual reports, interim reports, proxy forms and dividend vouchers; “claw-back offer” is when a company takes back remaining new shares that it had offered to its existing shareholders and offers them to other shareholders in proportion to their holdings in the form of a right to enable the shareholders to “claw back” their right to subscribe for the securities, and “claw-back issue” bears the same meaning; “clearing house” means a person whose main business is the clearing, netting and settlement of transactions on a securities exchange; “closed period” means— (a) the period from the end of an issuer’s financial year end to the date of earliest publication of the issuer’s preliminary report, abridged report or provisional report; or (b) the period from the expiry of the first six months of an issuer’s financial year to the date of publication of the issuer’s interim results; or (c) the period from the expiry of the second six-month period of an issuer’s financial year to the date of publication of the issuer’s
second interim results, in cases where the financial period covers more than 12 months; or (d) where an issuer reports on a quarterly basis, the period from the end of a quarter to the date of publication of the issuer’s quarterly results; or (e) any period when an issuer is trading under cautionary announcement; “closing price” means the price determined by the market and disseminated by the ZSE, as the last traded price;

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“Code” means a National Code of Corporate Governance in Zimbabwe or any other foreign code approved by ZSE in relation to foreign issuers; “controlling shareholder” means a shareholder who, alone or together with one or more associates or other parties with whom the shareholder has an agreement, arrangement or understanding, whether formal or informal, relating to voting rights attaching to securities of a company, can exercise or cause to be exercised 50 per centum or more of the voting rights at meetings of the company, or can appoint or remove, or cause to be appointed or removed, directors exercising more than 50 per centum of the voting rights at directors’ meetings of the company; “convertible securities” means securities which are convertible into or exchangeable for other securities accompanied by options to subscribe for or purchase other securities and “conversion” and “convertible” shall be construed accordingly; “corporate action” means an action taken by an issuer or any other entity or by a third party which affects the holders of securities in terms of entitlements or notifications; “daily official list” means the end of day trading session price list issued by the ZSE; “dealing” includes— (a) the acquisition or disposal of securities or a right, whether conditional or absolute; (b) to exercise or direct the exercise of the voting rights attaching to securities, or a right of general control of securities; and (c) the taking, granting, acquiring, disposing, entering into, closing out, terminating, exercise (by either party) or varying of an option (including a traded option contract) in respect of any securities; and (d) subscribing or agreeing to subscribe for securities; and (e) the exercise or conversion, whether in respect of new or existing securities, of any securities carrying conversion or subscription rights; and (f) the acquisition of, disposal of, entering into, exercise (by either party) of any rights under, or variation of, a derivative referenced, directly or indirectly, to securities; and (g) entering into, terminating or varying the terms of any agreement to purchase or sell securities; and (h) any other action resulting, or which may result, in an increase or decrease in the number of securities in which a person is interested or in respect of which he or she has a short position; “declaration data” means the minimum information to be announced on the declaration date such as share name, share code, share Interntional Security Identification Number (ISIN), event type, last day to trade, election date, record date, pay date, ex date or conditions precedent; “declaration date” means the date on which the corporate action and the declaration data, including any conditions precedent to which the corporate action is subject, are announced and released through the media; “de facto control”, in relation to a company, means actual control over the management of the company, whether the control is exercised through the
holding of shares or other securities in the company or the right to appoint directors of the company, or otherwise; “default for election” means an option that will be applied to an investor’s holdings of securities if he or she makes no election to the contrary; “director” means— (a) a person occupying the position of director or alternate director of a company, whatever his or her designation; and (b) in relation to an issuer which is not a company, a person with corresponding powers and duties to the director of a company; and includes a person in accordance with whose instructions the directors or a director are accustomed to act;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 “election date” means the date by which the transfer secretary must have received election instructions from shareholders, including ZSE members, fund managers and global custodians; “equity instruments” means securities with restricted or no voting rights, which participate in the distribution of profits in a manner directly linked to the profitability of the company; “equity securities” means equity shares, securities convertible into equity shares and equity instruments; “equity share capital”, in regard to a company, means its issued share capital excluding any part of that capital which, in respect of neither dividends nor capital, carries any right to participate beyond the specified amount in a distribution; “equity shares” means shares which are comprised in a company’s equity share capital and which carry votes; “ex date” means the first trading day after the last day of trading, from which day all trades exclude the right to receive entitlements; “finalisation date” meansthe date on which an event and its details become unconditional in all respects and irrevocable and no further finalisation changes to any of the finalisation information can be made by the issuer and the event can only be cancelled; “first day to trade” means the first business day on which newly issued securities may be traded; “foreign company” means a company which is incorporated outside Zimbabwe and is registered as a foreign company under the Companies Act [Chapter 24:03]; “foreign property” means property situated outside Zimbabwe; “Generally Accepted Accounting Practice” (GAAP) means the generally accepted accounting practice within Zimbabwe or, in the case of a foreign company, the generally accepted accounting practice, acceptable to the ZSE; “headline earnings” means the measure of earnings of the reporting entity in accordance with the formula determined and publicised through a circular by the ZSE from time to time; “holding company” means a company that has one or more subsidiaries; “immediate family”, in relation to an individual, means the individual’s spouse and children; “income statement” refers to the definition of “statement of profit or loss or other comprehensive income”; “intangible asset” means a non-monetary asset without physical substance, including goodwill, a patent, a trademark, a brand name, copyright, a franchise, a licence, know-how and a publication title; “International Accounting Standards” or “IAS” means the international accounting standards formulated by the International Financial Reporting Standards Foundation (IFRS); “International Financial Reporting Standards” or “IFRS” means— (a) the International Financial Reporting Standards formulated by the International Accounting Standards Board, together with related interpretations issued by the IFRS Interpretations Committee; or (b) any international accounting standards that were issued by the
International Accounting Standards Committee, the predecessor to the International Accounting Standards Board, to the extent that those standards have not been replaced by standards specified in paragraph (a); or (c) any other financial reporting framework adopted by the Public Accountants and Auditors Board; “International Standards on Auditing” or “ISA” means the International Standards on Auditing formulated by the International Auditing and Assurance Standards Board; “introduction” means a method of bringing securities to listing not involving an issue of new securities or any marketing of existing securities because the spread of shareholders already complies with the conditions for listing;

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“investment entities” means investment companies, investment trusts and unit trusts whose principal activity is investment in securities; “issuer” means a person whose securities are listed and traded on the ZSE; “issue for cash” means an issue of securities for cash for the extinction of a liability, obligation or commitment in compliance with Part VI— (a) to persons who are specifically approved by the shareholders in general meeting in respect of that particular issue; or (b) generally approved by shareholders by the giving of a renewable mandate valid until the company’s next annual general meeting provided it shall not extend beyond 15 months to the directors of the issuer to issue shares for cash subject to these listings requirements and to any other restrictions set out in the mandate; “last day to trade” means the last business day to trade in a security in order to settle by record date to be able to qualify or participate in an event; “Letters of Allotment” or “LAs” means a document that details and confirms the amount or number of securities allotted to an applicant; “list date” means the date on which new shares are listed; “listed company” or “issuer” means a company whose securities of any class are listed on the ZSE; “listing” meansthe admission of a security to the official list and “listed” isto be construed accordingly; “listing particulars” means a statement by a company seeking a listing that is issued for the purpose of giving information to the public with regard to the company and contains particulars specified in these rules or any other law; “major shareholder” means a shareholder who, directly or indirectly, is beneficially interested in 5 per centum or more of any class of an issuer’s capital; “major subsidiary” means a subsidiary that represents 25 per centum or more of total assets or revenue of the group based on the latest published interim or year-end financial results; “market value”, in relation to a listed security, means the ruling price for that security; “material information” meansinformation which, if omitted or misstated, could influence the economic decisions of users and includes a change in, or constituent of, a particular factor which may be regarded in the circumstances as being material and which exceeds 10 per centum in value; “material investment” means an investment of a company of at least 10 per centum interest or more in any class of securities; “material shareholder” means any person who is, or within the 12 months preceding the date of the transaction was, entitled to exercise or control the exercise of 10 per centum or more of the votes able to be cast on all or substantially all matters at general meetings of the listed company or any other company that is its subsidiary or holding company or is a subsidiary of its holding company; “merger issue” has the same meaning as “acquisition issue”; “minimum spread requirements” means the minimum percentage holding by members of the public in each
class of an issuer’s securities, as required by section 87; “new applicant” means an applicant which has no securities or class of securities already listed; “non-beneficial”, in relation to an interest, means an interest other than a beneficial interest; “odd-lot” means a holding totalling less than 100 securities; “offer for sale” means an invitation to the public by or on behalf of a third party to purchase securities of the issuer already in issue or to be issued and includes an offer in the form of an invitation to tender at or above a stated price; “offer for subscription” means an invitation to the public by or on behalf of an issuer to subscribe for securities of the issuer not yet in issue or allotted, and includes an offer in the form of an invitation to tender at or above a stated price;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 “official list” means the list maintained by the ZSE of companies whose securities it has admitted to listing; “open market dealings” means dealings on the ZSE trading system without any prior agreement; “pay date” means the date on which entitlements are paid or posted; “placing” means a marketing of securities already in issue but not listed, or not yet in issue, to specified persons or to clients of the sponsoring broker or any securities house assisting in the placing, which does not involve an offer to the public or to existing holders of the applicant’s securities generally and which takes place immediately before the applicant is listed; “practice note” means a practice note issued by the ZSE from time to time to clarify or expand upon these rules; “pre-issued securities” means entitlements to securities whose listing on the ZSE has been approved, where the listing becomes effective only after a number of conditions have been fulfilled on or before the commencement date of official trading; “pre-issued trading” means a transaction effected in pre-issued securities; “pre-listing statement” means the statement required to be issued by companies in terms of Part VII, and includes a prospectus; “press announcement” means an announcement in the press in accordance with Part XII; “price” means the basis of the cash entitlement (for the purposes of corporate actions); “price-sensitive information” means unpublished information which, if it were made public, would be reasonably likely to have an effect on the price of an issuer’s securities; “primary listing”, in relation to a security listed on more than one securities exchange, means a listing by virtue of which the issuer is subject to the full requirements applicable to listing on that exchange in respect of that security; “promoter” has the meaning given to it in section 72 of the Companies Act [Chapter 24:03]; “profit warning statement” means an announcement by an issuer prior to the publication of its financial statements indicating that its profits will be lesss than expected; “prospectus” means the prospectus issued by a company in accordance with the Companies Act [Chapter 24:03]; “Public Accountants and Auditors Board” or “PAAB” means the Public Accountants and Auditors Board established by section 4 of the Public Accountants and Auditors Act [Chapter 27:12]; “public shareholder” means a holder of a security which is regarded as being held by a member of the public in accordance with section 86; “publish” means to make available to the public through a newspaper of wide national circulation and any other electronic media; “pyramid companies” means companies classified by the ZSE as pyramid companies in accordance with the criteria set out in Part XV; “ratio” means the basis of share entitlement reflected as a ratio; “record date” means the date on which holdings, upon which an event entitlement is based,
is ascertained. Record date is one settlement period after the last day to trade (currently five business days) and must be on a Friday or, if Friday is a public holiday, the last trading day of the week; “reference price” means the last traded price, as determined by the ZSE; “related party” has the definition given to in section 266; “renounceable offer” means an invitation by an issuer to its shareholders to subscribe by way of rights for securities in the applicant, usually the listed company’s subsidiary, where the listed company has received the right to subscribe for those securities but renounces all or part of that right to its shareholders pro rata to their shareholdings;

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“rights offer” means an offer to existing holders of securities to subscribe for or purchase further securities in proportion to their holdings made by means of the issue of a renounceable letter or other negotiable document which may be traded as either “fully paid” or “nil paid” rights for a period before payment for the securities is due; “ruling price” means the price at which the last sale of a security took place or, if higher, the closing bid price or, if lower, the closing offer price as published in the daily official list on the relevant day; “scrip dividend” means a dividend incorporating an election on the part of the shareholder to receive either capitalisation shares or cash, with default election being cash; “secondary listing” means a listing that is not a primary listing; “settlement period” means the period between the day on which a trade takes place and the date on which the trade is due for settlement, currently five business days; “sponsoring broker” means a member of the ZSE registered pursuant to the requirements of section 18; “statement of profit or loss or other comprehensive income” means the statement as described in the International Financial Reporting Standards. This term is used interchangeably with the term “income statement” throughout these rules; “subscribed capital” means the portion of a company’s capital which has been subscribed for by shareholders; “subsidiary company” means a subsidiary as defined in the Companies Act [Chapter 24:03]; “substantial change” means a change in or constituent of a particular factor which may be regarded in the circumstances as being substantial and which, as a general rule, would normally exceed 30 per centum in value; “temporary documents of title” means allotment letters, split receipts, letters of acceptance, letters of rights, scrip certificates, electronic certificates and any other temporary documents of title; “transaction” includes— (a) a sale or purchase of, or an agreement to sell or purchase, any securities, including warrants and other derivatives issued in respect of securities; and (b) the grant, acceptance, acquisition, disposal, exercise or discharge of any option, including options in terms of a share incentive or option scheme or other right or obligation, present or future, conditional or unconditional, to acquire or dispose of securities or any interest in securities; “USD” means the currency of the United States of America, or the local equivalent thereof as determined by the prevailing bank Intermarket Rate issued by the Reserve Bank of Zimbabwe; “vendor consideration issue” has the meaning given to it by the definition of “acquisition issue”; “vendor consideration placing” means marketing on behalf of vendors of securities which must be issued to them in consideration for an acquisition; “viable asset” means— (a) a normal operating business which shall be any company that satisfies the requirements for a new listing and capable of issuing full listing
documents in terms of the Rules; or (b) an infrastructure project which shall be any project deriving its income predominantly from operations within the following sectors–– (i) energy; (ii) transport and logistics; (iii) water and sanitation; (iv) agriculture; (v) commercial or industrial buildings;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (vi) healthcare, educational or social infrastructure provided that— where the project is operating under a company or on its own it shall have audited accounts and a detailed feasibility study. (c) notwithstanding the provisions of this definition, the ZSE may exercise its discretion in determining whether or not an asset qualifies as a viable asset in terms of this definition; “warrant” means an instrument issued by a third party and listed on the ZSE, or on any other exchange that is acceptable to the ZSE, which gives the warrant holder the right— (a) to buy underlying securities from the issuer, in the case of a call warrant; or (b) to sell underlying securities to the issuer, in the case of a put warrant; at a pre-determined price and in a pre-determined ratio either— (i) at any time from the date of issue of the warrant until a pre-determined future date; or (ii) on a pre-determined future date; “weighted average traded price” means the total value of securities traded divided by the total number of securities traded; “ZAPB” means Zimbabwe Accounting Practices Board established in terms of the PAAB; “Zimbabwe Stock Exchange” or “ZSE” means the Zimbabwe Stock Exchange Limited; “ZSE trading system” means the ZSE floor trading system.
PART II
Authority of ZSE
General Powers of ZSE
3. (1) Subject to section 65 of the Securities and Exchange Act [Chapter 24:25], the ZSE has authority to
carry out the following functions—
(a) grant, review and suspend or terminate a listing of securities; (b) prescribe from time to time the minimum listings requirements with which an applicant must comply before each security issued by the applicant is granted a listing; (c) prescribe from time to time the minimum listings requirements with which an issuer must comply while securities issued by it remain listed; (d) suspend, alter or rescind a listings requirement before or after a listing has been granted; (e) prescribe the circumstances under which the listing of securities must or may be suspended or terminated; (f) prescribe the listings requirements with which sponsoring brokers and professional advisers must comply; (g) impose fines, in accordance with the Twenty-sixth Schedule on issuers of listed securities that fail to observe the standards referred to in these rules; and (h) issue practice notes. (2) Subject to subsection (1) ZSE shall ensure that— (a) it provides for the protection of investors; (b) it provides a market for the raising of primary capital ; (c) it provides an efficient mechanism for the trading of securities in the secondary market; (d) securities will be admitted to the official list only if the ZSE issatisfied that the applicant issuitable and that it is appropriate for those securities to be listed; (e) full, equal and timeous public disclosure must be made to all holders of securities and the general public regarding corporate actions and material information of an issuer;

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(f) holders of securities must be given full information and afforded adequate opportunity to consider in advance and vote upon substantial changes in the issuer’s business operations and matters affecting the issuer’s constitution or shareholders’ rights; (g) all parties involved, whether directly or indirectly, in the dissemination of information to the market, or to holders of relevant securities or to the public, must observe the highest standards of care; (h) all holders of the same class of securities of an issuer are entitled to fair and equal treatment in respect of their securities; (i) the listings requirements and the continuing obligations set out in these rules are designed to promote investor confidence in the standards of disclosure, the conduct of issuers’ affairs and the market as a whole; and (j) securities should be brought to the market in a way that is appropriate and that will facilitate an open and efficient market for the trading of securities. Listings committee
4. (1) The ZSE shall appoint a listings committee consisting of at least three non-executive board members.
(2) The committee may co-opt such number of technical experts as they deem fit for purposes of executing their functions. (3) The Listings Committee shall undertake the detailed execution of the functions of the ZSE provided for in section 3(1). (4) Issues of procedures at meetings and quorum will be provided in the procedure manual. Annual revision of official list 5.(1) All listings must be reviewed and revised by the ZSE annually afterreceipt by the ZSE of a certificate from each issuer complying with the Eighteenth Schedule (“the certificate”) by not later than the 31st January in each year (“the due date”). (2) If the certificate is not received by the ZSE on or before the due date— (a) the ZSE must send the issuer a letter of reminder on the next business day following the due date, requesting the issuer to rectify the situation and provide the ZSE with the certificate within 14 days from the date of the reminder, failing which the issuer must make written representations to the ZSE within seven calendar days thereafter as to why the securities should not be suspended and subsequently terminated; and (b) failing compliance within 14 calendar days of despatch of the reminder to the issuer in terms of paragraph (a), the ZSE must publish an announcement in two national newspapers and on the ZSE Data Portal, the cost of which is to be borne by the issuer, informing holders of securities that the issuer has not provided the ZSE with the certificate, and cautioning holders that the listing of the securities concerned are under threat of suspension and possible termination; and (c) the issuer will be invoiced the cost, payable on presentation, of the publication of the press announcement; and (d) if the certificate is notsubmitted and no representations are received in accordance with paragraph (a), or any representations that are received are unsatisfactory, the listing of the relevant securities will be suspended in terms of section 7 (unilateral suspension) and the suspension will only be lifted upon receipt by the ZSE of the certificate. Power of censure
6. (1) If the ZSE considers that an issuer has contravened these rules, it may, without derogating from its
powers of suspension or termination, censure the issuer by way of a written warning, or by public censure and publication, or both by notification seven days before. (2) Where the ZSE finds that an issuer or any of an issuer’s directors has contravened these rules, the ZSE may, without derogating from its powers of suspension or termination, do all or any of the following— (a) censure the issuer or the directors by means of private censure;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (b) censure the issuer or the directors or both, by means of public censure; (c) disqualify the issuer’s directors from holding office as director of a ZSE-listed company for such period as it may determine; (d) terminate the accreditation of the sponsoring broker and remove the sponsoring broker from the ZSE list of sponsoring brokers; and, where the ZSE takes the action referred to in paragraph (a) or (b), the issuer or the directors concerned, or both, shall be liable for the cost attached to such action. (3) In the case of wilful or persistent non-compliance with the listings requirements by an issuer’s directors, the ZSE may state publicly that in its opinion the retention of office by the directors concerned is prejudicial to the interests of investors. (4) Unless the ZSE considers that the maintenance of the smooth operation of the market or the protection of investors otherwise requires, it must give advance notice to the parties involved of any action which it proposes to take and at the same time give them an opportunity to make representations to the ZSE. Unilateral suspension
7. (1) If in the opinion of the ZSE—
(a) it is desirable in the public interest to do so; or (b) an issuer has failed to comply with these rules; or (c) it will further one or more objectives set out in section 4 of the Securities and Exchange Act [Chapter 24:25]; the ZSE may suspend the listing of an issuer’s securities and impose such conditions as it considers appropriate for the lifting of such suspension. (2)Where the ZSE finds groundsforsuspension, itshall notify the issuer of pending suspension to afford the issuer an opportunity to make representations to the ZSE in support of the continued listing of its securities. (3)Where the ZSE finds no merit in the representations made by the issuer it must suspend the listing unilaterally. (4) Where an issuer’s listing is suspended and the issuer fails to take action to obtain the restoration thereof within hundred and eighty (180) days, the ZSE may terminate the listing in accordance with section 10 (termination initiated by ZSE). Suspension on request
8. The ZSE may grant a request for the suspension of any listed securities—
(a) where the issuer is placed under provisional liquidation or under corporate rescue or is subject to an application for a scheme of arrangement or reconstruction under the Companies Act; or (b) where a written request is made by the directors of the issuer and it is apparent that there are two levels of information in the market and the ZSE considers that this situation cannot be remedied by the immediate publication of an announcement to clarify the situation; or (c) where the issuer has ceased to do business. Requirements after suspension
9. Unless the ZSE decides otherwise, an issuer whose securities are suspended must—
(a) continue to comply with all the listings requirements applicable to it; and (b) submit to the ZSE at least once every quarter or at such other times as the ZSE may determine, progress reports relating to the state of the affairs of the company and any proposed action by it; and (c) advise shareholders on a quarterly basis about the state of the affairs of the company and any proposed action by the company, including the date on which it expects that the suspension will be lifted.

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Termination
Termination initiated by the ZSE
10. (1). Subject to the Securities and Exchange Act [Chapter 24:25] and subsection (2), the ZSE may
remove any securities from the official list if, in its opinion— (a) it is in the public interest to do so; or (b) the issuer has failed to comply with these rules; or (c) the securities were suspended because the issuer was under corporate rescue and it has failed to come out of corporate rescue within two years from date of suspension; or (d) the issuer, having been placed under corporate rescue, is put into liquidation; or (e) the issuer fails to comply with the conditions set out in section 9 (requirements after suspension). (2) When a listing of securities is under threat of termination, the issuer must give notice of pending decision of ZSE to terminate. Termination on request
11. (1) An issuer shall not apply for the termination of its listing for a period of two years from the day it
is listed on the ZSE or from the date of its raising fresh capital from security holders. (2) Except as provided in subsection (1), an issuer may at any time make a written application to the ZSE for the removal of its securities from the official list, indicating the time and date with effect from which it wishes the removal to be effective and the reasons for the request:
Provided that ZSE may grant the request for termination, but the securities may be removed from the official list only if the listed company’s security holders in a general meeting have approved of the removal. (3)An issuer which has applied for the removal of itssecuritiesfrom the official list mustsend a circular to its shareholders giving reasons for the proposed termination. The circular must comply with the requirements of section 274 (contents of all circulars). (4) The ZSE may grant an application for termination if— (a) before making the application to terminate the listing, the company has obtained the security holders’ approval in a general meeting called for that purpose; and (b) the reasons for the termination are stated in the application. (5)Where shareholders’approval isrequired, unlessthe ZSE otherwise decides, a 75 per centum vote of the votes of all shareholders present or represented by proxy at the general meeting, excluding any controlling shareholder, its associates and any party acting in concert, must be cast in favour of the resolution approving the termination. (6) Shareholders’ approval of the termination of the listing need not be sought and a circular need not be sent to the holders of securities whose listing is intended to be terminated— (a) where, following a take-over, the securities have become subject to sections 191 and 194 of the Companies Act, and notice has been given by the offeror of its intention to cancel the listing of the securities in the initial offer document or any subsequent circular sent to the holders of the securities. Any such subsequent circular must be approved by the ZSE; or (b) upon the completion of any transaction in connection with which a circular has been sent to holders of the securities containing notice of the intention to terminate the listing of the securities on or after the completion of the transaction, if the date for cancellation of the listing is not less than 30 days after the date of issue of the circular. Removal from the official list of redeemable preference shares or debentures
12. (1) Written application for the removal of redeemable preference shares or debentures, or the
corresponding portion thereof, from the official list as and from the date of the closing of the registers or the date on which the redemption or repayment, as the case may be, took place (if preference shares or debentures are redeemed by drawings) must be made to the ZSE at least 30 calendar days before the date of redemption or repayment.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (2) The application must be accompanied by a copy of the proposed announcement and the circular to be issued to the redeemable preference shareholders or debenture holders notifying them of the redemption or repayment. Application of fines
13. The whole or part of any fines levied by the ZSE on issuers or their directors must be applied to the
meeting of any costs incurred by the ZSE in enforcing these listings requirements.
SUB-PART A SUSPENSION
Power to require information
14.(1)TheZSEmay require an issuerto disclose to it,within a period specified by theZSE,such information at the company’s disposal as the ZSE may determine. If the ZSE is satisfied, after the company has had an opportunity of making representations to it, that the disclosure of the information to registered holders of the securities in question will be in the public interest, the ZSE may by notice in writing require the company to disclose the information within the period specified in the notice. (2) The ZSE may require an issuer to publish or disseminate any further information not specified in these rules in such form and within such period as it considers appropriate. If the company fails to comply with such a requirement the ZSE may itself publish the information, after giving the company an opportunity to make representations in the matter, publish the information, and may recover the cost of publication from the company. Publication
15. (1) The ZSE may, in its discretion and in such manner as it thinks fit, notify the public or cause the
public to be notified that it has done any one or more of the following— (a) investigated dealings in a listed security; (b) censured an issuer; (c) suspended the listing of any security; (d) terminated the listing of any security; (e) imposed a penalty on an issuer; (f) imposed a penalty on an issuer’s directors; (g) advised that in its opinion the retention in office of any of the issuer’s directors, who shall be named, is prejudicial to the interests of investors; (h) omitted the price of any security from its official quotation of prices of securities issued for publication:
Provided that where ZSE gives the notification, the cost shall be borne by the issuer. (2) A notice referred to in subsection (1) must inform the public of the reasons for the ZSE’s action and, in the case of an investigation, of so much of the ZSE’s conclusions or findings as the ZSE may, in its discretion, consider necessary to disclose. (3) None of the following persons— (a) an issuer; or (b) any director or officer of an issuer; or (c) any holder of securities issued by an issuer, including a nominee of such a holder; or (d) an auditor, financial adviser or reporting accountant of an issuer; has a right of action, for damages or otherwise, against the ZSE or any member or employee of the ZSE arising out of the publication of any statement in terms of subsection (1) unless the publication was grossly negligent or reckless or was done wilfully with the intention of injuring the listed company, its directors or officers or any other claimant, as the case may be. (4) The ZSE may at any time and in its discretion publish or authorise the proprietor or publisher of any newspaper or periodical to publish any statement made in terms of subsection (1) and (2).

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PART III
Sponsoring Brokers
Application of Part
16. (1) This Part sets out the requirements relating to sponsoring brokers. Sponsoring brokers will be
persons who are registered as—
(a) securities dealers;
(b) banks;
(c) accountants;
(d) legal practitioners;
(e) investment advisors; and other professionals as may be approved by the ZSE.
(2) A sponsoring broker must accept the responsibilities set out in this Part and in the Sixteenth Schedule. The responsibilities of a sponsoring broker appointed by an issuer are— (a) to assist issuers with applications for listing which require the production of listing particulars or other relevant documents; and (b) to provide advice on a continuing basis regarding the application of these rules, including the application of the spirit of the requirements, and the need to uphold the integrity of the ZSE and the continuing obligationsset out in this Part. Only those sponsoring brokers on the ZSE’sregister of sponsoring brokers may act as sponsoring brokers. Sponsoring brokers
17. An issuer must appoint a sponsoring broker in certain circumstances. Such sponsoring broker must
make an undertaking to the ZSE that he or she accepts the responsibilities imposed by these rules. If the sponsoring broker fails to carry out those responsibilities, the ZSE may take one or more of the steps referred to in section 28 (action against a sponsoring broker). Criteria for registration as sponsoring broker
18. (1) A sponsoring broker must meet the requirements outlined in the Sixteenth Schedule paragraph
16.1.
(2) A sponsoring broker must undertake to the ZSE, in the form set out in Sixteenth Schedule, that it accepts the responsibilities of a sponsoring broker and will discharge those responsibilities at all times to the satisfaction of the ZSE. Every sponsoring broker is required to comply with the Code of Conduct for Sponsoring brokers attached to these rules in Sixteenth Schedule. (3) The ZSE must maintain a register of all qualifying sponsoring brokers, and no person may act as a sponsoring broker on any transaction unless the person’s name appears on the register of sponsoring brokers. Appointment
19. (1) An issuer must appoint a sponsoring broker when—
(a) the issuer makes an application for listing which requires the production of listing particulars; or (b) it wishes to submit documents to the ZSE pertaining to any of the matters detailed in Part XVII (documents to be submitted to the ZSE); or (c) after a breach of the listing requirements, the ZSE notifies the issuer that it should appoint a sponsoring broker to give advice on the application of these rules; or (d) a sponsoring broker is required by these rules to report to the ZSE in relation to any transaction or matter; or (e) the ZSE requires the issuer to do so. (2) Where an issuer has appointed a sponsoring broker for a particular transaction, the broker shall notify the ZSE of such appointment.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 Responsibility of a sponsoring broker
20. (1) The detailed responsibilities of the sponsoring broker which are provided in Sixteenth Schedule
emanate from the provisions of sections 16(2). A failure to carry out these responsibilities may result in the ZSE taking one or more of the steps referred to in section 28 (action against a sponsoring broker). (2) A sponsoring broker who places reliance on the advice of advisers to the issuer should be satisfied with the credentials and abilities of such advisers. (3) The sponsoring broker or, where there is more than one sponsoring broker in accordance with section 26, the lead sponsoring broker, must— (a) for each issuer in respect of which it acts as a sponsoring broker, submit to the ZSE at an early stage, and in any event not later than the date on which any documents in connection with the issuer are submitted to the ZSE, a confirmation in the form set out in Seventeenth Schedule (declaration by sponsoring broker); and (b) provide to the ZSE any information or explanation known to it in such form and within such time as the ZSE may reasonably require for the purpose of verifying whether the listings requirements are being and have been complied with by it or by an issuer; and (c) facilitate all correspondence between the issuer and the ZSE, including submitting minutes of meetings with the issuer and financial advisers; and (d) submit to the ZSE all documents required in terms of Part XVII (documents to be submitted to ZSE) and ensure that any announcements and documents, excluding periodic financial announcements and annual financial statements, comply with these rules both in principle and content. The sponsoring broker must obtain confirmation, preferably in writing, from issuers in respect of periodic financial announcements and annual financial statements that such announcements and statements have been prepared in compliance with these rules. All submissions, together with the required checklist as contained in the Appendix to Part XVII (documents to be submitted to ZSE), must be signed by at least one of the approved executives of the sponsoring broker; and (e) ensure that the issuer is guided and advised as to the application of these rules, and the need to uphold the integrity of the ZSE; and (f) ensure that all documents submitted to the ZSE are correct and complete; and (g) satisfy itself as to the credentials and abilities of the advisers to the issuer on which it places reliance,includingthoseofother appointedsponsoringbrokers,banks, corporate advisers,financial advisers, reporting accountants, auditors, competent persons, providers of fair and reasonable statements and specialist advisers, and that they carry out any activities as may be requested by the ZSE; and (h) discharge its responsibilities with due care and skill; and (i) Prior to the submission of any documents that require approval by the ZSE, satisfy itself on the basis of due and careful enquiry from the issuer and its advisers— (i) about the matters described in sections 21 to 25; and (ii) that there are no material matters, other than those disclosed in writing
to the ZSE, that should be taken into account by the ZSE in considering the submission. (4) The ZSE may on submission by the sponsoring broker of the documents relating to the transaction it considers that a proposed transaction requires persons with particular skills,, direct the sponsoring broker to appoint sponsoring brokers with the requisite qualifications and skills and any changes to the composition of persons within the team of a sponsoring broker must be notified to the ZSE. Applications for listings
21. (1) In the case of any application for listing which requires the production of listing particulars, the
sponsoring broker must complete a declaration in the form issued by the ZSE confirming that it has satisfied itself to the best of its knowledge and belief, having made due and careful enquiry of the issuer and its advisers that—

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(a) all the documents required by the listings requirements to be included in the application for listing have been submitted to the ZSE; and (b) all other relevant requirements of these rules have been complied with; and (c) there are no matters, other than those disclosed in the listing particulars or otherwise in writing to the ZSE, which should be taken into account by the ZSE in considering the suitability for listing of the securities for which application is being made. (2) In relation to any application for listing which requires the production of listing particulars, the sponsoring broker is responsible for— (a) all communication with the ZSE; and (b) the lodging with the ZSE of all documents supporting the application; and (c) seeking the ZSE’s approval of listing particulars. Directors
22. The sponsoring broker must be satisfied, before any application for listing is made which requires the
production of listing particulars, that the directors of the issuer— (a) have completed and submitted the directors’ declaration as set out in Twenty-first Schedule; and (b) have had explained to them by the sponsoring broker or other appropriate professional adviser the nature of their responsibilities and obligations as directors of an issuer under these rules; and (c) understand what isrequired ofthem to enable holders ofthe issuer’slisted securities and the public to appraise the position of the issuer and to avoid the creation of a false market in its securities once they are listed. Financial reporting procedures
23. In the case of a new applicant, the sponsoring broker must, before the application for listing is made,
report to the ZSE in writing that it has obtained written confirmation from the issuer or its advisers that the directors have established procedures which provide a reasonable basis for them to make proper judgments as to the financial position and prospects to the issuer and its group of companies and that this confirmation has been given after due and careful enquiry by the issuer. Profit forecast
24. Where a profit forecast appears in listing particulars, a Category 1 circular or any circular containing
proposals to be put to shareholders in general meeting concerning a refinancing or reconstruction of the issuer or its group of companies, the sponsoring broker must report in writing to the ZSE that it has made due and careful enquiry of the issuer and its advisers that the forecast or estimate has been properly made. Working capital statement
25. Where an issuer prepares listing particulars, or any circular or communication to holders of securities
that requires a working capital statement, the sponsoring broker must comply with all its responsibilities set out in the Twenty-fourth Schedule. More than one sponsoring broker
26. Where an issuer has appointed more than one sponsoring broker, the issuer must appoint one of them as
the lead sponsoring broker. The lead sponsoring broker must always be identified assuch in all communications with holders of securities and the public. Direct access
27. (1) A sponsoring broker must be present at all formal meetings between the ZSE and an issuer at which
matters relating to the issuer are discussed where the sponsoring broker has been appointed for that particular matter. (2) Notwithstanding this section, the ZSE may, in appropriate circumstances, communicate directly with the issuer or with any other sponsoring broker of the issuer, in addition to its sponsoring broker, on matters of principle which may arise prior to the submission of draft documents or on the interpretation of these rules. Where discussionstake place without the involvement of the sponsoring broker, the issuer or the issuer’s adviser must inform the sponsoring broker about the matters discussed as soon as practicable.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (3) No information concerning meetings referred to in this section may be released through the press without the prior consent of the ZSE. Action against a sponsoring broker
28. (1) Where a sponsoring broker is in breach of its responsibilities or fails to comply with any requirement
set out in this Part such sponsoring broker shall be liable to a civil penalty as prescribed in the Twenty-sixth
Schedule.
(2) In addition to the penalty outlined in subsection (1), the ZSE may— (a) censure the sponsoring broker; or (b) remove the sponsoring broker from the Register of Sponsoring Brokers; and may publish or cause to be published, by whatever means it considers appropriate, the action it has taken and the reasons for that action. (3) ZSE will consider any breach of responsibilities by a sponsoring broker before referring the breach to the Board of the ZSE. (4) Before taking any of the steps described in subsections (1) and (2), the ZSE must— (a) give the sponsoring broker reasonable notice of the ZSE’s proposed action; and (b) afford the sponsoring broker a reasonable opportunity to make representations to the ZSE, in writing or in person, or both. (5) After making a decision in terms of subsections (1) and (2), the ZSE must advise the sponsoring broker of the ZSE’s decision as soon as practicable after it is made, and of the reasons for the decision where it is unfavourable to the sponsoring broker. Responsibilities of sponsoring brokers
29. The requirements relating to the registration of sponsoring brokers is an integral part of the regulation of
the ZSE and it is essential that sponsoring brokers should assist the ZSE in upholding the integrity of the market.
PART IV
Continuing Obligations
Application of Part
30. (1)This Part sets out the authority of the ZSE regarding its powers to list, suspend, and terminate
listings and its powers to enforce these rules and other related matters. It also sets out certain of the continuing obligations which an issuer is required to observe once any of its securities have been admitted to listing. (2) This Part does not apply to issuers of specialist securities except where issuers are specifically referred to in this Part and as indicated in the continuing obligations in section 386 of Part XIX. Appointment of sponsoring broker
31. An issuer must appoint a sponsoring broker and all correspondence with the ZSE must be directed
through the sponsoring broker, subject to direct access as stated in section 27.
SUB-PART A: GENERAL OBLIGATION OF DISCLOSURE OF ISSUER Material price sensitive information 32: (1) Subject to approval by the ZSE, and with the exception of trading statements, an issuer must, without delay, unless the information is kept confidential for a limited period of time in terms of section 33 (3), release an announcement providing details of— (a) any circumstance or event that is or is likely to have a material effect, whether positive or negative, onthefinancialresults,financialpositionor cashflowofthe issueror anyofitsmaterialsubsidiaries; (b) any new development in such issuer’s sphere of activity that is not public knowledge and may, by virtue of the effect of that development on its financial results, financial position or cash flow or on the general course of its business, lead to material movements of the reference price of the issuer’s listed securities; and

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(c) any information necessary to enable holders of the issuer’s securities and the public to avoid the creation of a false market in such issuer’s listed securities. (2) Issuers must publish a profit warning statement assoon asthey are satisfied that a reasonable degree of certainty exists that the financial results for the period next to be reported upon will differ by at least 20 per centum from the most recent of base information which is— (a) the financial results for the previous corresponding period; (b) a profit forecast in terms of Part IX (financial information) previously provided to the market in relation to such period. (3) Issuers may publish a trading statement if the differences referred to in subsection (2) are less than 20 per centum but are considered by the issuer important enough to be made the subject of a trading statement. (4) The determination of a reasonable degree of certainty in terms of subsection (2) is a matter of judgement which has to be taken by the issuer and its directors and is one in which the ZSE does not involve itself. This determination may differ from issuer to issuer depending on the nature of the business and the factors to which they are exposed. (5)Trading statementsmust provide specific guidance by the inclusion of a specific number or percentage to describe the differences. (6) In the event of an issuer publishing a trading statement in subsection (3), the issuer must include a statement (which is not deemed to be a cautionary statement and which does not give rise to the commencement of a closed period) in the trading statement advising securities holders that the forecast financial information has not been reviewed and reported upon by the issuer’s auditors. (7) The profit warning and trading statements shall be published at least 21 days before publication of results. Where an issuer –– (a) publishes information without ZSE approval; or (b) publishes misleading information; or (c) makes late notification or disclosure of material information as required under subsection(1), it shall be liable to the fines outlined in Twenty–sixth Schedule. (8) Except where otherwise expressly provided, the provisions of this section are in addition to any specific requirements regarding obligations of disclosure contained in these rules. Confidentiality
33. (1) Information that must be published according to section 32 (material price sensitive information)
may not be given to a third party before it has been published except as permitted by subsection (3) to (6), or released (even subject to a time embargo) to any third party— (a) during ZSE trading hours, until the information has been published; or (b) outside ZSE trading hours, until the information has been authenticated and, approved, and arrangements have been made for the information to be published before the next business day’s opening of ZSE trading hours; and (c) any such information which is to be released during analysts’ briefings must first be submitted to the ZSE in accordance with Nineteenth Schedule (corporate action and other regulatory information submission). (2) Where information referred to in subsection (1) is released to a printer for printing prior to publication, the issuer must ensure the printer signs a confidentiality agreement with the issuer by prohibiting the disclosure of the information before its publication in terms of these rules. (3) An issuer may give information in strict confidence to its sponsoring broker or advisers and to persons with whom it is negotiating with a view to effecting a transaction or raising finance. These persons may include prospective underwriters of an issue of securities, providers of funds or loans or the placee of the balance of a rights issue not taken up by shareholders. In such cases, the issuer must advise, in writing, the recipients of such information that it is confidential and that they must not deal in the company’s securities before the relevant information has been made available to the public.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (4) Information required by and provided in confidence to, and for the purposes of, a government department, the Reserve Bank of Zimbabwe, the Competition and Tariff Commission, the Securities and Exchange Commission, the Zimbabwe Revenue Authority or any other statutory or regulatory body or authority need not be published. (5) Where information relates to a proposal by the issuer which is subject to negotiations with employees or trade union representatives, the issuer may defer publication of the information until an agreement has been reached on the implementation of the proposal. (6) Where it is proposed to announce at any meeting of holders of listed securities information which might have a material effect on the ruling price of the listed company’s securities, arrangements must be made for the publication of that information simultaneously with the publication by way of press announcements as soon as possible after the announcement at the meeting is made. If any price-sensitive information is disclosed in an unplanned manner during the course of a meeting of holders of listed securities, immediate steps must be taken for the making of an appropriate announcement containing such price sensitive information. (7) If –– (a) an issuer has any material price-sensitive information which could lead to material movements in the ruling price of its securities; and (b) the necessary degree of confidentiality regarding the information cannot be maintained or that confidentiality has or may have been breached; the issuer must publish the information, by way of a cautionary announcement complying with Part XII, as soon as possible. (8) An issuer must submit a copy of a cautionary announcement to the ZSE for approval in the form prescribed in the Twentieth Schedule (corporate action and other regulatory information submission). Once such approval has been obtained, the issuer must publish the cautionary announcement in compliance with Part XII by way of a press announcement in two daily newspapers and a copy of the same cautionary statement must also be submitted to the ZSE for publication on the ZSE Data Portal. (9) An issuer that has published a cautionary announcement must publish updates in terms of Part XII. (10) Where an issuer fails to publish updates as stated in subsection (9), it shall be liable to a fine prescribed in Twenty-sixth Schedule. (11) If the directors of an issuer consider that disclosure to the public of information required to be published in terms of section 32 (material price sensitive information) might prejudice the listed company’s legitimate interests, the ZSE may grant a dispensation from that requirement. SUB-PART B: DISCLOSURE OF PERIODIC FINANCIAL INFORMATION Dividends and interest
34. (1) Announcements of dividends or interest payments on listed securities should be notified to the
holders of the relevant securities five days upon declaration by means of a press announcement. (2) An electronic copy of the press announcement must be delivered to the ZSE in accordance with the Nineteenth Schedule at least 14 days prior to the last day to register. (3) Where dividends or interest payments are announced otherwise than by way of a press announcement, the ZSE must be notified in writing of the dividend or interest payment on the same day that holders of the relevant security are notified. (4) The announcement referred to in subsection (3) must contain the following information— (a) the last day to register; (b) the date on which the dividend or interest will be paid; and (c) the cash amount that will be paid for the dividend or interest. (5) Where a scrip dividend is declared, the information required to be announced is set out in section 125. (6) Notification of non-declaration of dividends or payment of interest must be published in the interim or preliminary report or in the annual financial statements or by way of a press announcement.

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(7) If an issuer decides not to declare distribution payments because such decision is deemed to be price-sensitive, the decision must be announced immediately after it is taken. (8) An issuer that wishes to declare a final dividend prior to the publication of the annual financial statements or preliminary report must ensure that the dividend notice given to shareholders contains— (a) a statementofthe ascertainedor estimatedconsolidatedprofitsbefore taxationofthe listedcompany and its subsidiaries for the year; and (b) the particulars of any amounts appropriated from reserves, capital profits, accumulated profits of past years or other special sources to provide wholly or partly for the dividend. (9) At least 14 days’ notice must be given to shareholders and the ZSE prior to the last day to register for the dividend or interest. (10) The last day to register should be a Friday, or if that day is a public holiday, the previous business day. (11) Unless there is just cause, payment of dividend or interest must be effected within 42 days after the last day to register, failure to which the issuer shall be liable to a penalty in terms of the Twenty-sixth Schedule (fines and penalty charges on listed companies). (12) Where a dividend or interest declaration is expressed as a percentage, the monetary equivalent must be shown in parenthesis. (13) Where there is a late declaration of a dividend by the issuer, the issuer must notify the ZSE in order to propose a new timeframe which requires ZSE’s approval. (14) Where an issuer makes a late declaration or declarations have been notified without complying with this section, it shall be liable to a fine prescribed in the Twenty-sixth Schedule. SUB-PART C: INTERIM AND PRELIMINARY REPORTS Interim reports
35. (1) The issuer must publish half-year interim reports in the press or in electronic form, and be distributed
to all shareholders after the expiration of the first six-months of the financial year and not later than 3 months after that date. (2) The issuer will be liable to a fine in accordance with Twenty-sixth Schedule for failure to publish the results within the period stipulated in subsection (1). (3) Where the financial period covers 15 months or longer, interim reports must be published in the press in respect of the first and second six months of this period. (4) Interim reports must comply with the IFRS for Interim Reporting, or any other framework prescribed by the ZAPB and with Part IX (Financial information). (5) Within 45 days after the end of the first and third quarters of each financial year, issuers must publish their interim reports on their websites and submit the reports to the ZSE for publication on the ZSE Data Portal. (6) Where an issuer fails to publish the results in terms of subsection (5), the issuer shall be liable to a penalty prescribed in Twenty-sixth Schedule which shall be payable within 30 days from the due date. Preliminary reports
36. (1) If an issuer has not distributed annual financial statements to all shareholders within three months
after its financial year-end, it must publish in the press and distribute to all shareholders a preliminary report, in accordance with the times prescribed in section 35, even if the information is unaudited. (2) The preliminary report must disclose the reason why the company has failed to distribute the annual financial statements within three months after its financial year-end. (3) Where the preliminary report has been audited, the announcement must state that the signed audit report is available for inspection at the company’s registered office.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (4) Although the audit report need not be included in the preliminary report, if the audit report is modified, details of the nature of such modification must be stated in the preliminary report, and the name of the auditor as well as a summary of the auditor’s opinion must be included in all abridged annual financial statements. Procedure for non-compliance of publishing interim financial statements
37. (1) Where an issuer fails to publish interim financial statements by the day following the due date of
issue of the listed company’sinterim 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). (2) Failing compliance within the time stated in subsection (1), the ZSE will publish a press announcement informing shareholders that the listed company has not issued its interim or preliminary report and cautioning security holdersthat the listing ofthe company’ssecurities are underrisk ofsuspension and possible termination. (3) On the date of publication of the announcement in terms ofsubsection (2), the issuer’slisting will be annotated on the ZSE Data Portal to indicate that it has failed to submit its interim, final or preliminary report on time. (4) The issuer will be invoiced the cost of publication of the press announcement and all reasonable related costs, and must pay the bill on presentation. (5) Where the listing is suspended, the lifting of the suspension will only be effected upon— (a) receipt by the ZSE of the listed company’s interim or preliminary report; (b) the ZSE being satisfied that the interim or preliminary report complies with IFRS; (c) the payment of the costs referred to in subsection (4); and (d) the listed company publishing the results. (6) When an issuer’s listing is suspended and the issuer fails to take action to obtain the restoration thereof within 180 days, the ZSE may terminate the listing. (7) An issuer is liable to a penalty prescribed in the Twenty-sixth Schedule. Requirement for review by auditors
38. (1) All unaudited—
(a) half-year interim reports; and
(b) preliminary reports; must be reviewed by the listed company’s external auditors.
(2) When conducting a review of an unaudited interim or preliminary report, the auditor must follow the guidelines issued by the PAAB. (3) The name of the auditor must be stated in the published interim or preliminary report. (4) Although the auditor’s report need not be included in the published interim or preliminary report, details of the nature of any qualification of or disagreement over the report must be stated in the report. (5) If the auditor’s report is not included in the published interim or preliminary report, the latter must state that the auditor’s report is available for inspection at the issuer’s registered office. (6) If during the course of a review of a preliminary report, the auditor becomes aware of any unresolved matter which could result in the qualification of the auditor’s report on the annual financial statements for the period under review, that fact must be stated in the preliminary report. (7) Where the financial period covers more than 12 months and interim reports are distributed in accordance with section 35, the listed company must obtain a review opinion for the second six-month period. Annual financial statements
39. (1) Audited annual financial statements must be published not more than three months after the end
of every issuer’s financial year.

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(2) All listed companies must, within six months after the end of each financial year, distribute the annual financial statements to all shareholders at least 21 days before the date of the annual general meeting and submit copies to the ZSE in accordance with Part XVII (documents to be submitted to ZSE)— (a) a notice of annual general meeting; and (b) the annual financial statements for the relevant financial year as reported upon by the company’s auditors. (3) Where annual financial statements have not been published to holders of its securities within three months of its financial year end, an issuer must distribute and publish a preliminary report as provided in section 36. (4) An issuer’s annual financial statements must be distributed to the issuer’s holders of securities and an electronic copy of the statements, in a prescribed form, must be submitted to the ZSE. (5)An issuer must publish an abridged report of its annual financialstatementsreferred to in subsection (1). (6) A summary of the audit report must be included in the abridged report and, if the audit report is modified, details of the nature of such modification must be stated in the abridged report. (7) Any annual financial information published voluntarily by an issuer in advance of being required to do so in terms of section 32 (material price sensitive information) must— (a) at least be reviewed by the issuer’s auditors; and (b) comply with Part IX (Financial information) in respect of disclosure; and (c) state the name of the auditors in the preliminary report. (8) Although the review or audit report need not be included in the preliminary report, if such report is modified, details of the nature of such modification must also be stated in the preliminary report. (9) If the review or audit report is not included in the preliminary report, it must state that the review or audit report is available for inspection at the issuer’s registered office. (10) If an issuer has published a preliminary report, then on the date of issue of its annual financial statements, the issuer must comply with subsection (4) or publish an announcement stating that it has issued its annual financial statements and that it is not publishing an abridged report as the information previously published in the preliminary report is unchanged. Procedure for non-compliance under annual financial statements
40. (1) Where an issuer has failed to comply with section 39—
(a) the ZSE must, five months after the listed company’s financial year end, send the listed company a letter of reminder by post or electronic means, as determined by the ZSE, advising that it still has one month within which to submit its annual financial statements, failing which its listing may be suspended until such time as the annual financial statements have been submitted; (b) the company’s listing must be annotated on the ZSE Data Portal, three months after its financial year end, to indicate that it has failed to submit its annual financial statements on time; (c) the ZSE must, six months after the company’s financial year end, publish a press announcement informing shareholders that the listed company has not submitted its annual financial statements, and cautioning shareholders that the listing of the company’s shares is at risk of suspension and possible termination; (d) the issuer’s listing must be suspended by the ZSE if it has not complied with the reminder sent in terms of paragraph (a) by the end of the seventh month after its financial year end, and thereafter the ZSE will consider the continued suspension or termination of the company’s listing; (e) the issuer must bear the cost of publication of the announcement referred to in paragraph (c), including any reasonable costs related to such publication; (f) the company’s suspension will be lifted upon receipt by the ZSE of the issuer’s annual financial statements and upon the ZSE being satisfied that the annual financial statements comply with the

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 accounting standards issued by the Zimbabwe Accounting Practices Board and upon payment of the costs referred to in paragraph (e); and (g) the company will be liable to a fine in accordance with Twenty-sixth Schedule(fines and penalties for listed companies) for failure to publish the results within the stipulated period, even if it has complied with the reminder sent in terms of paragraph (a). (2) The ZSE retains the discretion to waive the automatic suspension of a company’s listing where it has not submitted its annual financial statements on time. Modified auditor’s opinion
41. (1) Where a modified auditors’ report has been issued on an issuer’s annual financial statements and
contains an emphasis of matter, this will be announced through the ZSE Data Portal.
(2) If an issuer’s financial statements have been the subject of an audit qualification or disclaimer— (a) an announcement of that fact will be made through the ZSE Data Portal and published in the press by the ZSE, at the issuer’s cost, informing holders of the issuer’s securities that the auditors’ opinion has been qualified; and (b) a special meeting of the ZSE will be convened within 21 days after receipt of such financial statements, to consider the issuer’s continued listing, or the suspension and termination of the issuer’s listing; and (c) the issuer’s listing will be annotated on the ZSE Data Portal indicating an audit qualification. (3) Where the auditors express an adverse opinion on the annual financial statements of an issuer, an announcement of the fact will be made through the ZSE Data Portal and published in the press by the ZSE, at cost to the issuer, informing holders of securities that an adverse auditors’ opinion has been expressed. (4) Where the auditors disclaim an opinion on the annual financial statements of an issuer— (a) an announcement of the fact will be made through the ZSE Data Portal; and (b) a special meeting of the ZSE will be convened within 21 days after receipt ofsuch annual financial statements, to consider the issuer’s continued listing, or the suspension and termination of the issuer’s listing; and (c) the ZSEmust publish an announcement informing holders ofthe issuer’ssecurities of all decisions resulting from the special meeting referred to in paragraph (a). Notification relating to capital
42. Unless otherwise indicated, an issuer must, without delay, publish a press announcement containing
details of the following information relating to its capital— (a) any proposed change in its capital structure (for example any increase in the level of authorised or issued securities), other than allotments of new shares in terms of Part VI:
Provided that the announcement may be delayed while marketing or underwriting is in progress; (b) any proposed change in the rights attaching to any class of listed securities or to any securities into which any listed securities are convertible; (c) the basis of allotment of listed securities offered generally to the public for cash or claw-back offers to shareholders and, in the case of public offers, an additional press announcement must appear before dealings commence; (d) any extension of time granted for the currency of temporary documents of title; (e) the effect, if any, of any issue of further securities on the terms of the exercise of rights under options and convertible securities; and (f) the results of any new issue of listed securities or of a public offering of existing securities:
Provided that the issuer may, at its discretion, delay such publication until the obligation by the underwriter to take or procure others to take securities is finally determined or lapses.

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Cash companies
43. (1) If within six months after the ZSE has classified it as a cash company, a cash company fails to
enter into an agreement and make an announcement relating to the acquisition of viable assets that satisfy the conditions for listing set out in Part V, its listing will be suspended. (2) If a cash company fails to obtain the ZSE’s approval, within three months from the date of its suspension, of a circular relating to the acquisition by it of viable assets that satisfy the conditions for listing set out in Part V, the cash company’s listing will be terminated. (3) Where a cash company is to be utilised for the reversal of assets to itself— (a) it must comply with the requirements for bringing a company to listing; and (b) the company as reconstituted must meet the conditions for listing as set out in Part V. (4) Cash company’s investment shall acquire no less than 10 per centum of equity of the company holding the viable asset and it must be eligible for prescribed asset status. SUB-PART D: RIGHTS BETWEEN HOLDERS OF SECURITIES Equality of treatment
44. (1) An issuer must ensure that all holders of any class of its securities receive fair and equal treatment.
(2) An issuer may not issue any securities with voting rights differing from other securities of the same class. Pre-emptive rights
45. (1) Securities in each class for which listing is applied must rank pari-passu in respect of all rights,
that is to say, the securities—
(a) must be identical in all respects;
(b) must be of the same nominal value and the same amount per share must have been paid up; (c) must carry the same rights as to unrestricted transfer, attendance and voting at general meetings and in all other respects; and (d) must be entitled to dividends at the same rate and for the same period so that at the next distribution, the dividend payable on each share will be the same amount. (2) Unless the security holders concerned otherwise permit, an issuer proposing to issue equity securities for cash must first offer those securities by a rights offer to existing equity shareholders in proportion to their existing holdings. (3) Only to the extent that the securities are not taken up by existing equity shareholders in terms of the offer may they be issued for cash to others or otherwise than in the proportion mentioned in subsection (1). Waiver of pre-emptive rights
46. (1) To the extent that security holders of an issuer give their authorisation by ordinary resolution,
issues of equity securities for cash made otherwise than to existing shareholders in proportion to their existing holdings will, subject to Part V (conditions for listing), be permitted for a fixed period in accordance with that authority. (2) In exceptional circumstances, such as rescue operations, the ZSE may in its discretion allow a waiver ofshareholders’pre-emptive rightsthat does not comply with subsection (1) ifsatisfied that the conditionslisted in the Twenty-eighth Schedule exist but the ZSE may require the publication of such information relating to the waiver as it may consider appropriate. Profit warranties
47. (1) Where securities are the subject of a profit warranty, such securities may only be conditionally
allotted and issued and must be held by an independent third party in trust, pending fulfilment of the conditions of the warranty. The conditions of the profit warranty will only be regarded as having been met once the profit required has been achieved in terms of the profit warranty agreements and the issuer’s auditors have confirmed in writing to the ZSE that the conditions have been met for the securities to be allotted and issued. (2) Where the conditions of a profit warranty are not met—

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (a) the conditional allotment and issue of the securitiesthat were subject to such unfulfilled conditions are of no further force or effect; and (b) no cash compensation may be made for the profit warranty to be achieved. Issues by major subsidiary other than on listing
48. (1) For the purposes of this section, a subsidiary company will be regarded as a major subsidiary if it
represents 25 per centum or more of the aggregate of— (a) the share capital and reserves, excluding any minority interests, unrealised reserves not supported by a valuation prepared in the last six months by an independent professional expert acceptable to the ZSE, and intangible assets; or (b) the profits, after deducting all charges except taxation and excluding extraordinary items; of the issuer’s group. (2) An issuer must obtain the consent of its shareholders, determined in accordance with Part VI (methods and procedures of bringing securities to listing) and categorized in terms of Part XI (transactions with related parties), before any major subsidiary of the listed company makes any issue for cash of equity securities so as to materially dilute the listed company’s percentage interest in the equity securities of that subsidiary. (3) The obligation to obtain the consent of shareholders in subsection (2) does not apply if the major subsidiary is itself listed, but in that case— (a) the major subsidiary must comply with subsection (1); (b) the listed company must ensure that its equity interests in the major subsidiary are not materially diluted through any new cash issue by such subsidiary of equity securities unless such dilution is necessary for the listed subsidiary to satisfy the minimum spread requirements; and (c) in the case of a rights issue, if the listed company does not propose to take up its rights, an arrangement must be made for the rights to be offered first to its shareholders so that they can avoid a material dilution in their effective percentage equity interests. (4) The obligation to obtain the consent of shareholders in subsection (2) does not apply if the major subsidiary is unlisted and the issue takes the form of a rights issue to shareholders including the issuer. If the issuer does not propose to take up its rights, an arrangement must be made for the rights to be offered first to its shareholders so that they can avoid a material dilution of their effective percentage equity interests. Options for cash
49. (1) Where options over securities, excluding executive and staff share schemes, are granted for cash,
such options must be issued to all shareholders on the share register as on the business day immediately prior to the date of the grant of the listing in proportion to their shareholding in the listed company. Where this procedure is not to be adopted, the ZSEs consent should be obtained. (2) The total number of options granted or issued may not, except in the case of a mineral company as defined in PartXIII, exceed 20 per centumofthe listed company’sissued capital unless offered to allshareholders in proportion to their existing shareholdings. Shareholder spread
50. (1) All listed companies are required to ensure that a minimum percentage of each class of securities
is held by the public as provided in section 87 (main board listing criteria).
(2) If the percentage of a class of securities held by the public does not comply with the minimum spread requirements, the ZSE may suspend or terminate the listing of a company in accordance with Part II (authority of the ZSE) and allow the company a period of 90 days to restore the percentage, unless that is precluded by the need to maintain the smooth operation of the market or in order to protect investors. (3) A listing will not generally be granted to any issue of securities that would reduce the percentage level of securities held by the public. (4) If an issuer does not comply with the minimum spread requirements, any application to list new securities will be granted only if, as a result of the issue, the minimum spread requirements will be achieved as far as possible having regard to the size of the issue.

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(5) The ZSE may, in its discretion, allow a reduction in the minimum spread requirements if it considers that such a reduction is in the best interests of the issuer and does not unduly prejudice investors, for example in a rescue situation, provided that an acceptable plan to regularise the position is submitted to the ZSE. Notification
51. (1) An issuer must inform the ZSE, in writing, within seven business days of it becoming aware that
the proportion of any class of listed securities in the hands of the public has fallen below the minimum spread requirements. (2)Anissuermust,inregardtoitssecuritiesheldbythepublic,disclose inits annualfinancialstatements— (a) the number of members of the general public who hold securities in each class of its listed securities; (b) the percentages of each class of securities held by members of the general public and other persons; and (c) an analysis, in accordance with the categories set out in section 86 (1) to (3), of the disclosure for non-public securities holders. SUB-PART E: COMMUNICATION WITH SECURITY HOLDERS Prescribed information to be given to security holders
52. (1) An issuer must ensure that all the necessary facilities and information are available to enable
holders of securities to exercise their rights and must, in particular— (a) inform holders of securities of the holding of meetings which they are entitled to attend; (b) enable the holders of securities to exercise their rights to vote, where applicable; and (c) publish notices in the press or distribute circulars in terms of the these rules. (2) Where an issuer desires to distribute annual financial statements, circulars, notices of meetings of securities holders and proxy forms to holders of securities in electronic form, the issuer must amend its constitutive documents accordingly and obtain approval of the amendments from the holders of the securities. ZSE Data Portal
53. All announcements that must be made in accordance with these rules must be submitted to the ZSE for
publication on the ZSE Data Portal. Submissions must be made in accordance with the Nineteenth Schedule (corporate actions and other regulatory information submission). Such announcements must also be published in at least two national newspapers. SUB-PART F: PUBLICATION Press Announcements
54. (1) All press announcements must be published in English in two national English language newspapers.
Prior to publication, announcements must be submitted to the ZSE for approval in accordance with Nineteenth
Schedule.
(2) Issuers must ensure that their press announcements are afforded proper regional coverage in accordance with the geographical spread of security holders. Requirements for Circulars and pre-listing statements
55. (1)Circulars and pre-listing statements must be printed in English and distributed to all security holders.
(2) Where the ZSE considers it necessary, circulars printed in English may be translated into other officially recognised languages. Transfer or receiving and certification office for other securities exchange
56. (1) All issuers must maintain a transfer or receiving and certification office in Harare or Bulawayo.
Certification must be completed within 24 hours of receipt of transfer documents by the transfer office.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (2) An issuer that has, on application, been granted permission to list its securities on another exchange must ensure that the securities will be accepted for transfer without delay if presented in any of the centres in which they are listed. (3) An issuer must obtain approval from its security holders and from the Exchange Control authorities where applicable to list securities on another securities exchange. Proxy forms
57. A proxy form must be sent, together with the notice convening a meeting of holders of listed securities,
to each person entitled to vote at any meeting of the holders of listed securities.
Other classes of securities
58. If a circular or listing particulars or a press announcement is dispatched to the holders of any particular
class of security, the issuer must dispatch a copy or summary of such document to the holders of all other listed securities in the issuer unless the contents of the document are irrelevant to them. Communications with holders of bearer securities
59. If there is a need to communicate with holders of listed bearer securities, the issuer must publish a
press announcement referring to the communication and giving an address or addresses from which copies of the communication can be obtained. Documents of title
60. The issuer must ensure that share certificates, electronic certificates and all other documents of title
emanating from issuers must be sent by courier or by any other reliable means available, unless the documents exist in electronic form in which case they may be sent electronically to the owners thereof. Temporary documents of title
61. (1) Listed companies must not introduce temporary documents of title without the approval of the ZSE,
which approval shall be given upon their furnishing such information and documents as the ZSE may require. (2) Issuers which have received approval in terms of subsection (1) may not place a time-limit on their acceptance of any temporary documents of title for the purpose of issuing definitive certificates. (3) Issuers which have received approval in terms of subsection (1) must— (a) immediately, as soon as they are in a position to do so, cancel the share certificates or electronic certificates lodged with or issued by them, against which a temporary document of title has been issued; and (b) issue definitive share or electronic certificates within 21 days after presentation to them of the temporary documents of title duly signed and completed by the transferees. (4) No listed company may charge for the registration or transfer of its securities in Zimbabwe. Receipts
62. An issuer must issue receipts for all securities lodged with it.
SUB-PART G: MISCELLANEOUS OBLIGATIONS
Redemption of listed redeemable securities
63. (1) A redemption of listed redeemable securities must be authorised and conducted in accordance
with the listed company’s constitutive documents and the provisions of the Companies Act [Chapter 24:03]. (2) Unless the requirement of section 295(2) is waived, the issuer must send a circular containing the information set out in Part XII to holders of redeemable securities which must be redeemed. (3) An issuer which is redeeming securities in accordance with subsections (1) and (2) must submit a written application to the ZSE for removal from the List of the securities to be redeemed as from a specified time and date. Transfer from one section of the list to another section
64. (1) An issuer that wishes to be transferred from one section of the List to another section must submit
a written application to the ZSE, stating the reasons for the proposed transfer.

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(2) An application referred to in subsection (1) must give details, expressed in value and on a percentage basis, of the assets employed in and income derived from its activities and those of its subsidiaries. (3)The applicationreferredtoinsubsection(1)mustbe accompaniedbyadirectors’resolutionauthorising such transfer. Listing and other fees
65. An issuer must pay the listing and other fees, including the annual charge for listing, as set out in Part
XVIII, as soon as such payments become due and payable.
Directors
66.(1)Ifthere are anychangestothe compositionof anissuer’sboardofdirectors andexecutivemanagement team, including— (a) the appointment of a new director, company secretary or chief financial officer or other person of similar responsibility; (b) the resignation, removal or retirement of a director; and (c) changes to any important functions or executive responsibilities of a director; the listed company must notify the ZSE, through a sponsoring broker, of such changes without delay and in any case not later than the end of the business day after obtaining knowledge of any such changes. (2) The changes referred to in subsection (1) must be announced as soon as practicable and must be included in the company’s next publication of listing particulars, quarterly trading updates, interim report or annual financial statements. No such notification is required where a director retires and is re-appointed by a shareholders’ general meeting. (3) All directors, other than executive directors, must retire by rotation at least once in every three years or as provided in the company’s articles. No more than 40 per centum of the directors may be appointed as executive directors. (4) The notification required by subsection (1) must state the effective date of the change if it is not with immediate effect. If the effective date is not yet known or has not yet been determined, the notification should state this fact, and the company must notify the ZSE when the effective date has become known. (5) An issuer must, in respect of any new director, submit to the ZSE a director’s declaration in the form specified in Twenty-first Schedule within 14 calendar days prior to the director’s appointment becoming effective. (6) All directors of issuers must comply with these rules. Dealing in securities: directors and employees of listed companies
67. (1) For the purposes of subsection (2), a reference to a director includes the company secretary, senior
management and any other member of staff who has knowledge of the company’s performance or is involved in the preparation of the company’s financial results. (2) In respect of securities relating to itself, an issuer must submit to the ZSE— (a) details of all transactions, including off-market transactions, by or on behalf of— (i) a director or employee of the issuer, where the securities are held beneficially, whether directly or indirectly; (ii) a director or employee of a major subsidiary of the issuer, where the securities are held beneficially, whether directly or indirectly; (iii) any associate of a director or employee referred to in subparagraph (i) or (ii); or (iv) any independent entity, in terms of which any party referred to in subparagraphs (i) to (iii) may derive any beneficial or non-beneficial interest; and (b) a notice containing the information in paragraph (a) and the following information—

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (i) the date on which the transaction was effected; (ii) the price, amount and class of securities concerned; (iii) the name of the director or employee; (iv) the name of the company of which the person concerned is a director or employee; (v) in the case of options or any other similar right or obligation, the option strike price, strike dates and periods of exercise or vesting; (vi) the nature of the transaction; (vii) the nature and extent of the director’s interest in the transaction; and (viii) confirmation that clearance has been given in terms of section 68(2). (3) Any notification required by subsection (1) must be submitted without delay and in any event not later than the end of business on the day following the receipt of the information by the issuer. (4) An issuer must require each of its directors to disclose to it, insofar as that information is known to the director or could with reasonable diligence be ascertained by the director, all information which the company needs in order to comply with this section. (5) The directors and employees are required to disclose to the company secretary of the issuer all information that the issuer needs to comply with subsection (2) and the issuer must advise each of its directors of their obligations to disclose all such information. Any director or employee who deals in securities relating to the issuer must disclose to the issuer the information required by subsection (2) without delay, and in any event by no later than 24 hours after the dealing. The issuer must in turn announce such information without delay and in any event by no later than 24 hours after receipt of such information from the director or employee concerned. Clearance to deal
68. (1) A director or employee of an issuer may not deal in any securities relating to the issuer without
the authority of the chairperson of the issuer’s board or the issuer’s company secretary or a director designated for that purpose. (2) A director or employee of an issuer may not be authorised to deal in any securities relating to the issuer during— (a) a closed period; or (b) any period when there exists any matter which constitutes unpublished price-sensitive information in relation to the issuer’s securities. (3) Dealings by a director or employee of an issuer during periods stated in subsection (2) will attract a fine stipulated in Twenty-sixth Schedule. (4) A written record must be maintained by the issuer of any notification of dealings by a director or employee pursuant to subsection (2) and of any authority given. Written confirmation from the issuer that such notification and authority, if any, have been recorded must be given to the director or employee concerned. Changes in auditors
69. (1) An issuer must give written notice to the ZSE of—
(a) the termination of the appointment of its auditors; or (b) the resignation of its auditors. (2) The notice in terms of subsection (1) must –– (a) be given without delay and in any case not later than the end of the business day following the decision to terminate the appointment or after receipt of the auditors’ notice of resignation; (b) state the effective date of the termination or resignation unless the termination or resignation is instantaneous; (c) be accompanied by a letter from the auditors stating the date of termination and the reasons for the termination or resignation, as the case may be.

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(3) The ZSE may, in its discretion, require the company to publish an announcement to its shareholders advising them of the termination of the auditors’ appointment or their resignation and of the reasons for the termination or resignation. (4) The annual financial statements for the year in which the termination or resignation took place must state that the auditors’ appointment was terminated or that the auditors resigned and the reasons for the termination or resignation. (5) An issuer may only appoint as its auditor and reporting accountants an audit firm, or an individual auditor and reporting accountant who is a member of the Public Accountants and Auditors Board. (6) Issuers must change their audit partners every five years and their audit firm every ten years. The name of the individual partner signing on behalf of the audit firm must be included in any report issued by the firm in connection with the issuer. SUB-PART H: CONTINUING OBLIGATIONS COMPANIES QUOTED ON ANOTHER SECURITIES EXCHANGE
70. Issuers whose securities are listed on another securities exchange must ensure that equivalent information
is made available at the same time to the market of every exchange on which its securities are listed unless that is prohibited by the rules or requirements of any such securities exchange. Information to be processed by the ZSE
71. Issuers must ensure that information which they provide to the ZSE is the same as that which they
provided to other parties, such as transfer secretaries.
Disclosure of beneficial interests in securities
72. Issuersmust publish the beneficial interests of directors andmajorshareholdersin their annual financial
statements as required by Part IX.
Corporate governance
73. (1) In addition to complying with Part IX, listed companies must comply with the corporate governance
principles set out in this section, regardless of which code they have selected in terms of subsection (1), and must disclose such fact in their annual financial statements. (2) An issuer must have a policy on the procedures for appointments to the board. Such appointments must be formal and transparent, and a matter for the board as a whole, assisted where appropriate by a nomination committee. The nomination committee must be made up of non-executive directors only, of whom the majority must be independent. (3) An issuer must have a policy showing a clear division of responsibilities at board level to ensure a balance of power and authority, so that no single individual has unfettered powers of decision making. (4) The chief executive officer of an issuer must not also hold the position of chairperson of the board of directors and may not be elected chairperson of the company’s board of directors within two years after leaving the post of chief executive officer. (5) All issuers must appoint the following committees of their boards, namely— (a) an audit committee; (b) a nomination committee; (c) a remuneration committee; and (d) a risk committee; andmust disclose in their annual financialstatementsthe composition ofthe board and such committees and give a brief description of their mandates, the number of meetings held and other relevant information, including— (i) a brief Curriculum Vitae of each director standing for election or re-election at a general meeting; and (ii) the capacity of each director, categorised as executive, non-executive or independent in accordance with subsection (7).

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (6) The determination of which category is most applicable to each director should be based on the following guidelines— (a) executive directors are those directors who are involved in the day-to-day management and running of the business and are on full time employment of the company or any of its subsidiaries; (b) non-executive directors are those directors who are not involved in the day-to-day management of the business and are not on full-time employment of the company or any of its subsidiaries; (c) independent directors are those non-executive directors who— (i) are not representatives of any shareholder on the board; (ii) have not been employed in any executive capacity for the preceding three financial years by the company or the group of which it currently forms a part; (iii) are not members of the immediate family of any person who is or has been, in any of the past three financial years, employed by the company or the group in an executive capacity; (iv) are not professional advisers of the company or the group, other than in the capacity of directors; (v) are not material suppliers or customers of the company or group; (vi) have no material contractual relationship with the company or group; and (vii) are free from any business or other relationship which could be seen to interfere materially with the individual’s capacity to act in an independent manner. (7) The audit committee of an issuer must set the guidelines for recommending the use of external auditors for non-audit services. (8) Independent directors must be the majority on the board of directors of an issuer. (9) The chairperson of the board of an issuer must be an independent director. (10) The appointment of the board chairperson and the Chief Executive Officer of an issuer must be done by the Board. Liquidation and corporate rescue
74. (1) In the event of an issuer being placed, or making application to be placed, under corporate rescue
or liquidation, whether voluntary or compulsory, provisional or final, the issuer must immediately notify the ZSE of that fact. (2) Where an issuer fails to notify the ZSE as required by subsection (1), it shall be liable to a civil penalty as set out in Twenty-sixth Schedule.
PART V
Conditions for Listing
Introduction
75.(1)Listings or additional listings are granted subject to compliance with these rules andZSE’s approval. (2) All applications for listing must be submitted to the ZSE through a sponsoring broker. Discretion of the ZSE
76. (1) Notwithstanding these rules, the ZSE may in extraordinary circumstances, exercise its discretion
to—
(a) grant a listing to an applicant which does not comply with the requirements set out in this Part; or (b) refuse a listing to an applicant which complies with these rules; on the ground that the grant or refusal of the listing is in the interests of the investing public. Applicants that wish to apply for a listing, but do not meet all the criteria prescribed by these rules for the grant of a listing are therefore invited to discuss their intended applications with the ZSE.

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(2) Applicants are required to submit to the ZSE, at an early date, any matter or unusual feature relating to the listing. This procedure will obviate any difficulties that may arise after applicants, without getting the ZSE’s approval, have finalised transactions which may be in conflict with these rules. SUB-PART A: CONDITIONS APPLICABLE TO ALL SECURITIES MARKETS Applicant to be duly constituted
77. (1) An applicant must be duly incorporated or otherwise validly established under the law of the
country where it is incorporated or established, and must operate in conformity with its constitutive documents and all applicable laws of its country of incorporation or establishment. (2) An applicant seeking a listing on the ZSE must enter into a binding undertaking with the ZSE, by completing Seventh Schedule, that from the date of admission to listing of any of its securities it will comply fully with all the listings requirements of the ZSE, irrespective of the jurisdiction in which the applicant is incorporated. Directors
78. (1) The directors of an applicant must—
(a) individually undertake to the ZSE that they have exercised their fiduciary duties with due regard to the applicant’s constitutive documents; and (b) collectively undertake to honour their responsibility for the applicant’s compliance with these rules; and (c) ensure that collectively they and the senior management of the applicant possess appropriate expertise and experience forthemanagement ofthe applicant’s business anddisclose suchexpertise and experience in any listing particulars prepared by the applicant. (2) Before listing, an applicant must— (a) submit to the ZSE a director’s declaration in respect of each of the directors of the applicant in the form specified in the Twenty-first Schedule; (b) ensure that each of the directors is free from any conflict of interest between the duties he or she owes to the applicant and his or her other private interests; and (c) where conflicts do exist, ensure that the conflicts are sufficiently declared and disclosed. (3) An issuer must ensure that its audit committee is chaired by an independent director possessing the necessary expertise and experience. Listing of subsidiary companies or assets
79. (1) Whenever a company intends to make an offer of securities of a subsidiary or requires or permits
a subsidiary to issue securities in order to obtain a listing, the company must ensure that the securities which must be issued and not retained by the holding company are renounced in favour of its shareholders by way of a renounceable offer, unless the ZSE agrees otherwise. The company must hold an extraordinary meeting to agree to waive pre-emptive rights by a vote of 85 per centum in favour of the resolution. (2) When, in connection with the listing of a subsidiary company, a listed holding company intends to make an offer of securities in the subsidiary to persons other than wholly-owned entities within the holding company’s group, and the issue or offer will result in— (a) reduction in the fair value exceeding 5 per centum, supported by a fair and reasonable opinion, of the holding company’s investment in such subsidiary before and after the issue; (b) decrease in the percentage holding of securities resulting in less than a 50 per centum holding of securities in such subsidiary company; or (c) loss of board control by the holding company; the securities to be issued that are not retained by the holding company must be renounced in favour of its securities holders by way of a renounceable offer, or the securities holders of the company must specifically approve the issue in accordance with Part VI (methods and procedures of bringing securities to listing).

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 Financial information
80. (1) Financial statements which are presented with an application for listing—
(a) must be prepared in accordance with the applicant’s national law and independently audited; (b) must have been reported upon by auditors without any qualification which, in the opinion of the ZSE, is significant for the purposes of listing; and (c) if they contain any profit forecast of the applicant, must be accompanied by a report complying with Part IX and prepared by the applicant’s auditors or reporting accountants. (2)Anissuermustpublishauditedannualfinancialstatementsforitsfinancialyearinthemannerspecified in the prospectus or pre-listing statement irrespective of the fact that the applicant may have subsequently changed its year-end. Status of the securities
81. (1) The securities for which a listing is sought must be issued in conformity with—
(a) the law of the applicant’s country of incorporation or establishment; (b) the applicant’s constitutive documents; and (c) any other authorisations needed for their creation and issue under such law. (2) No application will be considered by the ZSE unless the constitutive documents of the applicant or any document that gives rise to the listing of a security has been approved by the ZSE. (3) Where an applicant has securities listed on another exchange and applies for admission of such securities to listing on the ZSE, the applicant must comply with the requirements of that exchange and the relevant laws of that country in addition to complying with these rules. (4) Securities in each class for which listing is applied must rank pari-passu with all the others in that class in respect of all rights. Transferability of securities
82. (1) The securities for which listing is sought must be fully paid up and freely transferable.
(2) Where the issuer’s constitutive documentsstate differently, the ZSE will require the issuer to amend such constitutive documents accordingly. (3) The ZSE shall not grant a listing in respect of issues of non-voting equity securities. Low and high voting instruments
83. (1) The ZSE shall not grant a listing of shares or securities which the ZSE considers constitutes equity
instruments with high or low votes.
(2) A low-voting security is one which, subject to compliance with the Companies Act [Chapter 24:03], confers on its holder, both at the proposed time of listing of the equity security and subsequently, reduced voting rights in comparison with the voting rights conferred on the holders of equity securities of the issuer already listed. The voting rights may be reduced either with respect to the number of votes per security or with respect to matters on which the holders of the securities may vote. (3) A high-voting security is one which, subject to compliance with the provisions of the Companies Act [Chapter 24:03], confers on its holder, both at the proposed time of listing the instrument and subsequently, enhanced voting rights in comparison with the voting rights conferred on the holders of equity securities of the issuer already listed. The voting rights may be enhanced either with respect to the number of votes per security or with respect to the matters on which the holders of the securities may vote, or otherwise. Convertible securities
84. (1) The ZSE shall not grant a listing to convertible securities unless there are sufficient unissued
securities in the applicant’s authorised capital into which the convertible securities could convert at the time the convertible securities are issued. (2) The applicant for the grant of a listing to convertible securities must undertake to the ZSE that at all times it will maintain sufficient unissued securities to cater for the eventual conversion of the convertible securities.

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Unlisted securities
85. (1) If an applicant is not granted a listing for additional securities to be issued, or if for any reason
certain securities have been delisted—
(a) the certificates must be stamped “Unlisted securities” and the stamp must be perpetuated for all future registrations; (b) the share register must signify that the securities are unlisted and a statement regarding the unlisted securities must appear in the applicant’s annual financial statements; and (c) any additional securities issued will be subject to the same requirements. (2) Where votes by shareholders are required by these rules, the votes of holders of unlisted shares must not be counted. Public shareholders
86. (1) Subject to subsection (2) and for the purposes of section 87, a security is not regarded as being
held by a public shareholder if it is beneficially held, whether directly or indirectly, by— (a) a director of the issuer or any of its subsidiaries; (b) an associate of a director of the issuer or any of its subsidiaries; (c) an employee share scheme or pension fund, or the trustees of such a scheme or fund, which is established for the benefit of directors or employees of the issuer or any of its subsidiaries; (d) a person who, by virtue of any agreement, has the right to nominate a person to the board of directors of the issuer; (e) any person who is beneficially interested in 10 per centum or more of the issuer’s securities of the relevant class, unless the ZSE determines that, in all the circumstances, such person can be classified as part of the public for the purposes of section 87; or (f) an employee of the issuer, where restrictions on trading in the issuer’s listed securities, in any manner or form, are imposed by the issuer on such employee. (2) Notwithstanding subsection (1), a security will be regarded as being held by a public shareholder if any person who is interested in 10 per centum or more of securities of the relevant class— (a) is a fund manager or portfolio manager who manages more than one fund or portfolio, where each fund or portfolio is interested in less than 10 per centum of the relevant securities:
Provided that this exemption does not apply where the fund or portfolio manager is, in relation to any such fund or portfolio, acting in concert with any person who holds relevant securities which, together with those held by the fund or portfolio in question, represent 10 per centum or more of the relevant securities; (b) is the registered holder of securities which are the subject of a depository receipt programme and no depository receipt holder or anyone else with whom he or she may be acting in concert, holds depository receipts representing 10 per centum or more of the securities concerned, unless the holder is a fund or portfolio manager in accordance with paragraph (a); or (c) is a nominee shareholder and none of the beneficial shareholders which that nominee represents, together with anyone else with whom he or she may be acting in concert, is interested in 10 per centum or more of the securities concerned, unlessthe beneficialshareholder is a fund or portfolio manager in accordance with paragraph (a). (3) The ZSE may, in its discretion, require an issuer to provide it with a declaration that, to the best of the knowledge and belief ofits directors, any beneficialshareholders ofthe company whose shares are registered in the names of one or more nominees do not include any person who may be acting in concert with any other person insofar as it may affect their classification as public shareholders. Main Board listing criteria
87. An applicant seeking a listing on the Main Board must satisfy the following criteria—

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (a) a subscribed capital of ten million United States dollars, which capital includes reserves and intangible assets but excludes minority interests and revaluations of assets that are not supported by a valuation prepared within the preceding six months by an independent professional expert acceptable to the ZSE; and (b) not less than ten million equity shares in issue; and (c) a satisfactory profit history for the preceding five financial years, if applicable; and (d) at least 30 per centum of each class of equity shares must be held by public shareholders, unless otherwise agreed with the ZSE. Where the issuer has had a private placement prior to the initial public offering, at least 20 per centum of the total issued shares must be offered to the public. Generally the public consists of individuals and institutional investors holding less than 5 per centum of the shares in issue; and (e) the number of public shareholders of listed securities must be at least— (i) 300 in respect of equity shares; (ii) 25 in respect of preference shares; (iii) 10 in respect of debentures; (f) minimum spread criteria should be complied with on a continuous basis.
Part VI
SUB-PART A: METHODS AND PROCEDURES OF BRINGING SECURITIES TO LISTING Methods open to applicants Applicants without equity securities already listed
88. New applicants may bring equity securities to listing by way of—
(a) an introduction; or
(b) a placing; or
(c) by any of the methods referred to in section 89.
Applicants with or without equity securities already listed
89. New applicants or those with equity securities already listed may bring securities, whether of a class
already listed or not, to listing by—
(a) an offer for sale; or
(b) an offer for subscription; or
(c) an issue with participating or conversion rights; or (d) a renounceable offer.
Applicants with equity securities already listed
90. (1) Only applicants with equity securities already listed may bring securities, whether of a class already
listed or not, to listing by—
(a) a rights offer; or
(b) a claw-back offer or issue; or
(c) a capitalisation issue; or
(d) an issue for cash; or
(e) an acquisition or merger issue or vendor consideration issue; or (f) a vendor consideration placing; or (g) an exercise of options to subscribe for securities ,including options in terms of executive and staff share schemes; or

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(h) a conversion of securities of one class into securities of another class.
(2) The ZSE may approve, either generally or specially, any other method by which applicants with equity securities already listed may bring securities for listing. SUB-PART B: INTRODUCTIONS Requirements for introductions
91. (1) For an introduction, the applicant must—
(a) submit a certified copy of its share register to ZSE; and (b) comply with the conditions for listing as set out in Part V. (2) An applicant may not bring securities to listing by way of an introduction if there is a pre-existing intention by holders, other than public shareholders, to dispose of a material number of their securities. The applicant must satisfy the ZSE that it has no knowledge of any such intention and that it has informed those holders that they must not dispose of their securities within 18 months of listing. (3) Where an applicant’s listing has been suspended or terminated— (a) because it was a cash company; or (b) in connection with a reverse take-over; and the applicant is seeking to return to listing, the ZSE may permit an introduction but may require some marketing of the applicant’s securities in order to improve or ensure compliance with the shareholder spread requirements set out in section 50, before approving the listing. Documents to be submitted to the ZSE for introductions
92. Part I and all available Part II documents described in Part XVII must be submitted to and approved
by the ZSE prior to the granting of a listing by way of an introduction. The remainder of Part II and Part III documents must be submitted as soon as possible thereafter and in any event not later than 42 calendar days from the date of listing. Documents to be published for an introduction
93. Documents relating to an introduction which must be published on the day listing commences are set
out in Part XII.
SUB-PART C: PLACINGS
Specific requirements for a placing
94. For a placing, the applicant must comply with the conditions for listing as set out in Part V (conditions
for listing) and the Companies Act [Chapter 24:03].
Documents to be submitted to the ZSE for a placing
95. (1) Part I and all available Part II documents described in Part XVII must be submitted and approved
by the ZSE prior to the granting of a listing by way of a placing. The remainder of Part II documents must be submitted as soon as possible thereafter and in any event not later than 42 calendar days from the date of listing. (2) Part III documents described in Part XVII must be submitted as soon as possible and in any event not later than 28 calendar days from the date of a listing by way of a placing. Documents to be published for a placing
96. The Documents that require publication with regard to a placing are set out in Part XII.
SUB-PART D: OFFERS FOR SALE OR SUBSCRIPTION
Specific requirements for offer for sale or subscription
97. (1) An offer for sale by an issuer of securities in the issuer must be made by way of a renounceable
offer to the shareholders of the listed company which will be open for 21 calendar days .The listed company must give the ZSE an undertaking that it will not dispose of those securities whilst the renounceable offer is open. (2) An offer forsale by an issuer ofsecuritiesin the listed company’ssubsidiary, as described in section 98 (1), listing of subsidiary companies or assets, must be made by way of a renounceable offer of such securities

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 to the securities holders of the listed company, which offer is to be open for a period of 21 calendar days. The listed company must give the ZSE an undertaking that it will not dispose of any securities which it holds in such subsidiary whilst the renounceable offer is open. (3) An offer for subscription by an issuer is regarded as an issue for cash and must comply with the requirements contained in sections 129 to 131. An offer for subscription by a new applicant must comply with the requirements contained in sections 98 to 104. Underwriting of offer for sale or subscription
98. (1) An offer for sale which relates to securities to be issued for subscription must be underwritten.
(2) In an offer for sale referred to in subsection (1), the prospectus ,pre-listing statement or circular of the issuer must include a declaration by its directors that they have carried out due and careful enquiry to confirm that the underwriter and the sub-underwriter (where applicable) can meet its commitments in terms of the offer. In an offer, the issuer’s circular must include a declaration by its directors that they have carried out due and careful enquiry to confirm that all sub-underwriting arrangements have been disclosed in the circular and the agreements be availed for inspection. (3) The underwriter and the sub-underwriter, where applicable, in an offer for sale referred to in subsection (1) must— (a) satisfy the ZSE that it can meet its commitmentsthrough a guarantee letter from the underwriter’s bankers to the ZSE confirming the availability of funds on demand throughout the course of the transaction; and (b) submit an affidavit sworn by two of its directors confirming its financial capacity to carry out the terms of the underwriting; or (c) ifitisregulated by anotherregulator, obtain confirmation fromthatregulatorthatsuch underwriting is within the scope of its licensable activities; and (d) if it is unregulated, submit to the ZSE a letter of undertaking by the underwriter to the issuer that its commitment is irrevocable and that it will make funds available to purchase any unsubscribed securities in the event that the offer is not fully subscribed. (4) Any underwriting commission paid to a securities holder of the company— (a) must be separately disclosed under transaction costs in the circular; and (b) must not be greater than the current market rate payable to independent underwriters:
Provided that, in the case of charges for private placements, the level of charges should not exceed current underwriting levels and the applicant must present evidence to the ZSE proving the reasonableness of such commission. (5) Where an underwriter holds 35 per centum or more of the issued share capital of the issuer after it takes up the unsubscribed shares of an issue, the underwriter must reduce its shareholding to below 35 per centum or make an offer to minorities in accordance with Part X (Transactions) within twelve months. The ZSE has the discretion to vary the time-frame depending on the circumstances of the issuer. Commission payable
99. The rate of commission payable by applicants on issues by way of an offer for sale or subscription is
a minimum of 0, 5 per centum of the issue.
Over-subscriptions
100. (1) An issuer must submit to the ZSE its policy in relation to over-subscription for prior approval.
In the event of an over-subscription that policy must be applied and the formula for the basis of allotment must be calculated in such a way that a person will not, in respect of his or her application, receive an allocation of a lesser number of securities than any other subscriber who applied for a lesser number. (2) Where the initial listing is over-subscribed or cancelled and persons are owed subscription refunds in respect of their applications, the sponsoring broker or issuer must ensure that the subscription moneys and all

S.I. 134 of 2019 interest earned on such moneys, calculated from the date of receipt of the moneys by the company concerned, are paid back to the subscribers before the shares are listed or on the day following the decision to cancel the listing in the case of a cancellation. Documents to be submitted to the ZSE by listed companies
101. Listed companies engaged in offers for sale or subscription must submit to the ZSE the documents
listed in section 363 (documents to be submitted by issuers) at the times specified in section 104. Documents to be submitted to the ZSE by new applicants
102. (1) Part I documents and all available Part II documents described in Part XVII must be submitted to
the ZSE by new applicants engaged in a listing by sale or subscription, and must be approved by the ZSE prior to listing being granted. The remainder of Part II documents must be submitted as soon as possible thereafter and in any event not later than 42 calendar days after the date of listing. (2) Part III documents referred to in Part XVII must be submitted to the ZSE by new applicants engaged in a listing by sale or subscription as soon as possible and in any event not later than 42 days after the date of listing. Documents to be published
103. The documents to be published regarding an offer for sale or subscription are shown in Part XII and
must be published in accordance with section 104.
Timetable for publication of documents
104. The table below sets out the timetable, as a guide, for offers for sale or subscription. The dates after
the closing of the offer are indicative and may be advanced as long as the sequence of events is not disturbed. Timetable — Guide Day Event (D+0) Publication of press announcement or pre-listing statement. Pre-listing statement available. Offer opens. All Part I documents must have been submitted to and approved by the ZSE. Listing will have been granted subject to approval of Part II documents and the results of the offer meeting the requirements for shareholder spread. (D+21) Offer closes. All Part II documentation must have been submitted to and approved by the ZSE. (D+24) Results of offer submitted to the ZSE. (D+27) Results announcement published by applicant giving date of commencement of dealing in securities if listing has been granted or appropriate negative statement issued. (D+28) Latest date for documents of title posted. (D+33) Securities listed Last date for refund cheques. (D+61) Part III documents to have been submitted to the ZSE. SUB-PART E: RENOUNCEABLE OFFERS Renounceable offers
105. An applicant who wishes to make a renounceable offer must comply with the conditions for listing
set out in Part V.
Ability to trade
106. (1) The right of an issuer’s shareholders to subscribe for securities in the applicant referred to in
section 115 (2) must be made by means of the issue of a renounceable offer or other negotiable document which
may be traded as “nil paid” rights for a period of not less than 21 calendar days before payment is due. (2) The enforcement of the right of holders of securities of an issuer to subscribe for securities in the applicant must be done by means of a renounceable offer to such holders of securities through the issue of

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 renounceable letters of allocation or other negotiable documents, traded as “nil paid” rights, for a period in accordance with the relevant timetable. Shareholder spread
107. (1) The issued share capital of an applicant and the letters of allotment issued to implement the
renounceable offer must be listed at the same time.
(2) The issuer making the renounceable offer shall be required to prove to the ZSE that it will comply with the minimum spread requirements following the close of the renounceable offer. General requirements for renounceable offer
108. The requirements of a rights offer will apply to a renounceable offer to the extent appropriate to them.
Documents to be submitted to the ZSE in respect of renounceable offer
109. The documents listed in Part XVII (documents to be submitted to the ZSE) for renounceable offer
should be submitted to the ZSE according to the timetable set out in section 111.
Documents to be published in respect of renounceable offer
110. (1) An issuer is required to—
(a) publish two press announcements giving details of the renounceable offer; (b) publish press announcements or issue circulars in accordance with Part XII; and (c) despatch letters of allotment to its shareholders; according to the timetable set out in section 111. (2) The press announcements and pre-listing statement must comply with section 274 (contents of all circulars) and the documents that require publication regarding a renounceable offer are referred to in Part XII. Timetable
111. The timetable below is for guidance only and may be altered. The ZSE’s approval of a proposed
timetable must be obtained in all cases.
Day Event
Applicant Listed Company
Friday (D+0) First press announcement of intention to list. All Part I documents must have been submitted to the ZSE First press announcement giving last date for registration of the offer subject to ZSE approval Monday (D+10) All Part II documents are submitted to the ZSE Second press announcement giving the terms of the renounceable offer Tuesday (D+11) Formal approval by the ZSE to the listing of the issued securities granted Formal approval by the ZSE to the listing of the letters of allotment granted Wednesday (D+12) Second press announcement giving dates for listing and information as to when and from where pre-listing statements can be obtained Third press announcement giving dates of the renounceable offer and information as to when and from where pre-listing statements can be obtained Friday (D+14) Pre-listing statements available Last day to register for renounceable offer. Pre-listing available Monday (D+17+ Issued securities listed on ZSE (9.00 am) Letter of allotment listed on ZSE (9.00 am) Wednesday (D+19) Last day for receipt of postal registrations Renounceable offer opens (9.00 am). Friday (D+21 Pre-listing statements and letters of allotment posted to shareholders. Wednesday (D+40) Last day for dealing letters in letters of allotment (1430)

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Thursday (D+41) Last day for splitting of letters of allotment (09h30). The securities that are the subject of the renounceable offer are listed as the renounceable offer is fully underwritten. Friday (D+42) Renounceable offer closes (14h30) (Earliest date). Wednesday (D+47) Last date for postal acceptances (14h30). Thursday (D+48) Proceeds of issue received by applicant Proceeds of renounceable offer paid to applicant. Friday (D+49) New share certificates posted Final press announcement giving results of renounceable offer. Friday (D+77) Part III documents to have been submitted to the ZSE Refund cheques, if any, posted. SUB-PART F: RIGHTS OFFERS Specific requirements for rights offers
112. Letters of application, allocation or acceptance must be issued for rights offers and must be renounceable.
Underwriting
113. (1) A rights offer must be underwritten.
(2) In a rights offer the underwriter and the sub-underwriter, where applicable, must— (a) satisfy the ZSE that it can meet its commitmentsthrough a guarantee letter from the underwriter’s bankers addressed to the ZSE confirming the availability of funds on demand throughout the course of the transaction; (b) submit an affidavit sworn to by two of its directors confirming its financial capacity to carry out the terms of the underwriting; (c) if it is regulated by another regulator, obtain a confirmation that such underwriting is within the scope of its licensable activities; and (d) if it is unregulated, submit to the ZSE a letter of undertaking by the underwriter to the issuer that its commitment is irrevocable and that it will make funds available to purchase any unsubscribed securities in the event that the offer is not fully subscribed. (3) In a rights offer the issuer’s circular must include a declaration by its directorsthat they have carried out due and careful enquiry to confirm that–– (a) the underwriter can meet its commitments in terms of the offer; (b) all sub-underwriting arrangements have been disclosed in the circular and the agreements be availed for inspection. (4) Where an underwriter holds 35 per centum or more of the issued share capital of the issuer after it takes up the unsubscribed shares of an issue, the underwriter must reduce its shareholding to below 35 per centum or make an offer to minorities in accordance with Part X within twelve months. The ZSE has the discretion to vary the time-frame depending on the circumstances of the issuer. (5) Any underwriting commission paid to a holder of securities of a company must— (a) be separately disclosed under transaction costs in the circular; and (b) not be greater than the current market rate payable to independent underwriters. In the case of charges for private placements the level of charges must not exceed current underwriting levels, and the applicant must present evidence to the ZSE of the reasonableness of such underwriting commission. Excess security applications
114. (1) A rights offer may include the right to apply for excess securities subject to such right being
transferable upon renunciation of the letters of allotment. In a rights offer which includes the right to apply for

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 excess securities, the right to apply for excess securities must be transferable upon renunciation of a letter of allotment. (2) In respect of applications for excess securities, the pool of excess securities must be allocated equitably, taking into account the number of securities held by the shareholder, including those taken up as a result of the rights offer. (3) The excess securities applied for by a shareholder may be used to round up the holdings to multiples of 100 securities. General provisions regarding rights offers
115. (1) The approval of the ZSE must be obtained for rights offers priced at above the ruling price.
(2) Unless circumstances are such as to warrant a concession being granted by the ZSE, the ZSE requires the letters of allocation to be listed. (3) Forms of instruction in respect of letters of allotments must be sent to all shareholders of which only Form A (Form of Renunciation) requires the signature of the renouncee. Form B (Registration application form) and Form C (Application for split forms) must not be required to be signed. (4) The forms referred to in subsection (3), which are available from transfer secretaries, form part of the rights offer circular and must be submitted to the transfer secretaries once signed. Documents to be submitted to the ZSE
116. The documents listed in Part XVII for rights offers must be submitted to the ZSE at the relevant times
specified in the timetable set out in section 118(1).
Documents to be published or circulated
117. (1) Press announcements must be published in respect of a rights offer and must give—
(a) the last date for shareholders to register to participate in the rights offer; and (b) the terms of the rights offer; and (c) the dates of the rights offer; and (d) the results of the rights offer. (2) In addition to the announcements referred to in subsection (1), a circular or pre-listing statement must be sent to shareholders. (3) The press announcements, rights offer circular or pre-listing statement must comply with sections 284 (1) and 285 and must be issued according to the timetable in section 118. Timetable for rights offers
118. (1) The timetable below is a guide and applicable to an issuer making a rights offer—
Day Event
Friday
(D+0)
Latest date for the first press announcement giving the last day for registration for the rights Monday (D+10) Second press announcement giving the terms of the rights offer including the statement referred to in section 284 (press announcements for rights offers) Wednesday (D+12) Third press announcement giving the dates for the rights offer All documents described in Part XVII must have been submitted to and approved by the ZSE Friday (D+14) Last day to register for the rights offer Monday (D+17)

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Day Event
Wednesday
(D+19)
Last day for receipt of postal registrations
Friday (D+21) Circular or pre-listing statement and letters of allocation posted to shareholders registered for the rights offer Monday ( D + 24 ) Letters of allocation listed Wednesday (D+40) Last day for dealing in letters of allocation. Thursday (D+41) Securities that are the subject of the rights offer listed (if granted) Friday (D+42) Offer closes (14h30), Earliest date Wednesday (D+47) Last day for postal acceptances of the rights offer Friday (D+49) Fourth press announcement giving the results of the rights offer (2) Deviations from the timetable should be approved by the ZSE. Claw-back offers and issues: Specific requirements
119. (1) The securities in a claw-back offer must be offered to the applicant’s shareholders by way of a
renounceable letter or other negotiable document which must be listed as “fully paid” or “nil paid” rights, for a period of at least 21 calendar days, before payment for the securities is due. (2) The requirements of section 112 (specific requirements for rights offers) in respect of rights offers also apply to claw-back offers. Capitalisation issues: specific requirements
120. (1) The ZSE will not approve any announcement, advertisement or circular in which a capitalisation
issue is in any way presented as a dividend when shareholders are not entitled to elect to receive a cash dividend. (2) Shareholders’ approval must be obtained by the applicant to give effect to the capitalisation of the share premium or reserves if the articles of association do not permit the directors to do so without the approval of the shareholders. Documents to be submitted to the ZSE
121. The documents listed in Part XVII for capitalisation issues must be submitted to the ZSE at the times
specified in that Part and in accordance with the timetable set out in section 123(1).
Documents to be published
122. (1) A press announcement referred to in section 117(1) must be published and a circular relating to
it must be sent to shareholders.
(2) The press announcement and circular must comply with Part XII and be issued according to the timetable set out in section 123(1). Timetable for capitalisation issue
123. (1) The timetable for a capitalisation issue is set out below as a guide—
Day Event
Friday (D+0) Publication of press announcement Friday (D+14) Record date for participation in capitalisation issue Lodge application for listing the maximum number of securities that could be issued

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 Day Event Monday (D+17) Securities listed ex-entitlement Circular made available Maximum number of securities that could be issued listed if the listing has been granted Wednesday (D+ 19 ) Last day for postal registration Friday (D+21) Post circular to shareholders Securities allotted and listed Lodge signed application for listing giving details actual number of securities issued Securities allotted and listed Share certificates posted to shareholders (2) Deviations from the timetable should be approved by the ZSE. (3) Should a cash underpin for the capitalisation shares be offered by a third party, the requirements of sections 287(3) must be applied with necessary modifications. SUB-PART G: SCRIP DIVIDEND AND CASH DIVIDEND ELECTIONS Description
124. (1)A scrip dividend comprises capitalisation shares where shareholders are afforded the right to elect
to receive in lieu of cash dividends. Dividend and dividend yield statistics issued by the ZSE will reflect the full amount of the dividend before shareholder election. (2) A cash dividend election arises where a capitalisation issue is declared and shareholders are afforded the right to elect to receive a cash dividend in lieu of the capitalisation or bonus shares. (3) The right of election referred to in subsections (1) and (2) must not be prohibited by the issuer’s articles of association. (4) The ZSE will not approve an announcement or circular in which a capitalisation issue is in any way presented as a dividend when shareholders are not entitled to elect to receive a cash dividend. Specific requirements for scrip dividends and cash dividend election
125. (1) A form of election must be dispatched with the circular and must contain—
(a) a statement that the election may be made in respect of all or part of the securities held or deemed to be held at the close of business on the record date and that fractions will be paid out in cash; (b) the ratio of entitlement; and (c) a statement that no late postal elections will be accepted. (2) Where the articles of association do not permit the directors to effect any capitalisation of the share premium or reserves without the approval of the shareholders, the directors must obtain such approval. (3) Where the ratio of entitlement is proposed to be other than that of a whole securities per 100— (a) the date of payment of the scrip dividend must be at least 21 calendar days and at most 42 calendar days from the last day to register; and (b) fractions of securities must be rounded up and paid in cash. Documents to be submitted to the ZSE
126. The documents detailed in Part XVII (documents to be submitted to ZSE) for scrip dividends and
cash dividends election should be submitted to the ZSE at the times specified in that Part. Documents to be published
127. (1) Two press announcements must be published and a circular sent to shareholders in respect of any
scrip dividend or a cash dividend election.

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(2) The press announcements and circular must comply with Part XII and be issued in accordance with the timetable in section 128. Timetable for scrip dividend
128. This timetable is a guide for a scrip dividend—
Day Event
Friday (D+0) Publication of first press announcement Monday (D+10) Publication of second press announcement Friday (D+14) Record date for participation in scrip dividend All documents described in Part XVII must have been submitted to and approved by the ZSE Monday (D+17) Securities listed ex-entitlement Circular made available Maximum number of securities that could be issued listed if listing is granted Friday (D+21) Post circular to shareholders Friday (D+42) Last day for election Monday (D+45) Press announcement of results of issue Lodge signed application for listing detailing actual number of securities issued Wednesday (D+47) Securities allotted and listed Share certificates and dividend warrants posted to shareholders SUB-PART H: ISSUES FOR CASH Specific requirements: Issues for cash
129. (1) An applicant may only issue for cash securities with voting rights where those securities are of a
class already issued:
Provided that—
(i) the issue must be of a class already in issue and made to public shareholders as defined in
section 86 and, if any of the equity securities must be issued to non-public shareholders as
defined in sections 86(1), this fact must be disclosed; (ii) issues in the aggregate in any one financial year may not exceed 25 per centum of the applicant’s issued share capital of that class. In this calculation, the securities of a particular class will be aggregated with the securities which are compulsorily convertible into securities of that class; (iii) the maximum discount permitted— A. where shareholders’ approval is sought in terms of paragraph (a) of the definition of issue for cash must be subject to shareholder’s approval; B. where shareholders’ approval is sought in terms of paragraph (b) of the definition of issue for cash must be 10 per centum of the weighted average traded price of those securities over the 30 days prior to the date that the price of the issue is determined or agreed upon by the directors of the applicant. The ZSE should be consulted for a ruling if the applicant’s securities have not traded in that 30-day period; (iv) the number of securities of a class which may be issued in terms of the definition of issue for cash must be based on the number of securities of that class in issue as at the date of the application. (2) The ZSE may waive all or any of the requirements in subsection (1), and section 130 (voting) subsections (1) and (2) in relation to an issue of securities for cash if it is satisfied that the applicant is in severe financial difficulty or that there are other exceptional circumstances to justify the waiver. (3) The number or maximum number of equity securities to be issued must be disclosed if— (a) the discount at which the securities must be issued is not limited; or

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (b) the discount at which the securities must be issued is limited. (4) If the issue is to a related party as described in Part XI, the issue must be subject to the issuer providing holders of its equity securities with a fair and reasonable statement complying with Fifth Schedule given by an independent professional expert acceptable to the ZSE and indicating whether or not the issue is fair and reasonable to equity securities holders, excluding the related party if it is an equity security holder of the issuer. Voting
130. (1) A resolution to approve the waiver of pre-emptive rights in an issue of securities for cash, where
35 per centum or more of the applicant’s issued securities are held by the public, must be passed by 85 per centum of votes cast by shareholders present or represented by proxy at a general meeting called for that purpose. (2) If the applicant has less than 35 per centum of its securities held by the public the resolution to approve the waiver of pre-emptive rights must be passed by 90 per centum of votes cast by shareholders present or represented by proxy at a general meeting called for that purpose. (3) The consequence of any issue of securities for cash should not, in respect of the applicant, constitute an “affected transaction”. Documents to be submitted to the ZSE
131. The documents detailed in Part XVII concerning issue for cash should be submitted to the ZSE in
respect of an issue of securities for cash, at the times specified in that Part.
Documents to be published
132. Where approval has been obtained for an issue of securities for cash a circular must be sent to
shareholders giving details of the issue. The circular must contain the information set out in section 285. Announcements
133. Acompany that hasissued securitiesin terms of a specific issue for cashmust publish an announcement
containing full details of the issue, including— (a) the number of securities issued; (b) the average discount to the weighted average traded price of the securities over the 30 days prior to the date that the price of the placing was determined or agreed upon by the directors of the company; (c) if the discount exceeded 10 per centum, the name of the independent professional expert who prepared the statement that the discount was fair and reasonable and an indication of where copies of such statement can be obtained; and (d) the effects of the issue on net asset value and earnings per share. SUB-PART I: ACQUISITION OR MERGER ISSUES Description
134. An acquisition, merger issue or vendor consideration issue is an issue of securities in consideration
for an acquisition of assets which excludes the extinction of a liability, obligation or commitment or an issue of securities for an acquisition of, or merger with, another company as consideration for the securities of that other company. Specific requirements
135. (1) Listing will only be granted to securities issued as consideration for an acquisition or merger if
the ZSE determines that the issue is for the bona fide purchase of assets and not a circumvention ofshareholders’ rights of pre-emption. (2) The ZSE must be consulted when an issuer proposes to issue securities as consideration for the acquisition of assets. Documents to be submitted to the ZSE
136. The documents listed in Part XVII must be submitted to the ZSE at the times specified in that Part.

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Documents to be published or circulated
137. The documents which must be published in respect of an acquisition or merger issue are set out in
Parts X (transactions) and XII (circulars, prelisting statements, prospectus and press announcements). SUB-PART J: VENDOR CONSIDERATION PLACINGS Specific requirements
138. In a vendor consideration placing—
(a) all vendors must have an equal opportunity of participating in the placing; (b) where the securities to be placed are equity securities of a class already listed, the placing price must not be at a discount of more than 10 per centum to the weighted average traded price of those minimum securities over the 30 calendar days prior to the date that the price of the placing is determined or agreed upon by the directors of the company, or be a 10 per centum discount to the 30-day weighted average trading price prior to the date of the placing; (c) a determination of the ZSE must be obtained if the issuer’s securities have not traded in the 30- day period referred to in paragraph (b); and (d) the requirements of Part V (conditions for listing) apply if the securities being placed are a class of equity securities not already listed, unless the issuer has another class of equity security already listed, in which case the requirement as to the spread of shareholders shall apply. Exercise of options to subscribe for securities (including options in terms of executive and staff share schemes)
139. (1) Applications for listing of securities issued in terms of options to subscribe for securities must be
made in terms of Part XVII.
(2) Application for listing of shares in terms of executive and staff share schemes may be for block listings or forspecific allotments and must comply fully with Fourteenth Schedule (requirementsfor Executive and Staff share Schemes). Issues with participating or conversion rights
140. Unless the ordinary shareholders have waived their rights, classes of securities which have participating
rights to profits or have equity conversion rights must be offered to ordinary shareholders of a company by means of a rights offer, unless they are issued— (a) as a claw-back offer; (b) as an issue for cash; (c) for the acquisition of assets or a merger; or (d) in circumstances which the ZSE considers to be exceptional. SUB-PART K: REPURCHASE OF SECURITIES Description
141. (1)An acquisition by an issuer of its own shares in accordance with sections 77 to 84 of the Companies
Act [Chapter 24:03] constitutes a repurchase of securities, and the company must comply with sections 142 to 150 of these rules on terms— (a) specifically approved by shareholdersin a general meeting in respect of that particular repurchase:
Provided that repurchase by a company of its own securities in any one financial year must not, in the aggregate, exceed 40 per centum of the company’s issued share capital of that class; or (b) generally approved by shareholders in a general meeting by their giving to the directors of the company a renewable mandate, valid until the company’s next annual general meeting or for 15 months from the date of the resolution, whichever is the shorter, to repurchase its securities subject to the requirements of the ZSE and to any other restrictions set out in the resolution:

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 Provided that a general repurchase may not exceed 20 per centum of the company’s share capital of that class in that financial year. Requirements for specific authority to repurchase securities
142. (1) In this section—
“specific repurchase”means a repurchase by a company ofits own securities which has been specifically approved by shareholders in accordance with section 141(1)(a). (2) An applicant may only make a specific repurchase of its securities— (a) in the case of an offer to all shareholders, if it is on a pro rata basis to their existing holdings, or from specifically named shareholders; (b) if it is authorised by its articles to repurchase its securities; and (c) if authority has been given in terms of a special resolution of the issuer by shareholders other than— (i) controlling shareholders and their associates; (ii) any party acting in concert; or (iii) any shareholder who is participating in the repurchase and who is not regarded as being part of the public in terms of section 87 (main Board listing criteria). (3) A pro rata offer referred in subsection (2)(a) must remain open for 21 days. Circular for repurchase of securities
143. (1) A circular on a repurchase of securities must contain the following—
(a) the minimum contents of any circular as required by section 274 (contents of all circulars); (b) general information about the repurchase, including— (i) the names and addresses of directors and major shareholders; (ii) material changes; (iii) directors’ interest in securities; (iv) share capital; (v) directors’ responsibility statement; and (vi) litigation statement; (c) the reason for and method by which the company intends to repurchase its securities, including the number of securities to be repurchased and the price to be paid; (d) in the case of a repurchase from specific shareholders, the names of the shareholders and their current shareholding and the names and details of the parties excluded from voting as provided in section 142(2)(c); (e) in the case of a pro rata offer, a statement that a shareholder may tender more securities and that a shareholder who tenders securities in addition to the offer must be treated on an equitable basis. A policy on the treatment of such cases must be submitted to the ZSE for prior approval; (f) the effect on earnings per share and net asset value and tangible net asset value per share on the group of the proposed repurchase; (g) a statement by the directors— (i) that the issuer and the group will be able in the ordinary course of business to pay their debts for a period of 12 months after the date of the approval of the circular; (ii) that the assets of the issuer and the group will be in excess of the liabilities of the company and the group. For this purpose the assets and liabilities should be recognised and measured in accordance with the accounting policies used in the latest audited annual group financial statements;

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(iii) confirming the adequacy of ordinary capital and reserves of the issuer and the group for a period of 12 months after the date of the approval of the circular; and (iv) confirming the adequacy of the working capital of the issuer and the group for a period of 12 months after the date of the approval of the circular; (h) a statement as to the source of funds to be utilised; and (i) in the case of a specific repurchase as defined in section 142, a statementfrom an independent professional expert acceptable to the ZSE which complies with the Fifth Schedule and indicates whether or not the premium paid is fair and reasonable to shareholders of the company if such a premium is more than 5 per centum of the weighted average of the market value of the securities for the five business days immediately preceding the announcement of the repurchase. (2) Financial information and auditors’ reports, in terms of section 148 (financial information) must be submitted to the ZSE simultaneously with the circular to shareholders. Announcements of offers for repurchase of securities
144. (1) In respect of a pro rata offer the announcement must contain—
(a) in the case of the first announcement the— (i) information that a circular containing details of the offer and notice of general meeting will be dispatched to shareholders; and (ii) date of the meeting at which the specific authority will be sought; and (iii) last day to register in order to participate in the offer; and (iv) terms and conditions of the offer including the ratio and the price; and (v) opening and closing dates of the offer; and (vi) date of payment by the company; (b) in the case of the second announcement the— (i) details of the pro rata offer; and (ii) results of the meeting; (c) in the case of the third announcement the— (i) results of the pro rata offer and the cost; and (ii) date on which the securities will be cancelled, and the listing terminated, if applicable; and (iii) effect on the earnings per share, the net asset value per share and the tangible net asset value per share. (2) In respect of a specific repurchase, as defined in section 141 from a specific shareholder, the announcement must contain— (a) the terms of the repurchase; and (b) the date of the meeting at which the specific authority will be sought; and (c) the name of the person from whom the specific repurchase is to be made; and (d) the date on which the repurchase is to be made and the date on which the securities will be cancelled and the listing terminated, if applicable; and (e) the effect on the earnings per share, the net asset value and the tangible net asset value per share; and (f) a statement that a circular containing the detailsspecified in paragraphs(a)to (e) will be dispatched to shareholders. Requirements for general authority to repurchase securities
145. (1) In this section—

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 “general repurchase” means a repurchase by a company of its own securities which has been generally approved by shareholders in accordance with section 141. (2) An issuer may only make a general repurchase of securities if— (a) the repurchase of securities is implemented on the ZSE (b) the issuer is authorised by its articles to repurchase its securities; (c) the issuer is authorised by shareholders by a special resolution of the company in general meeting, which resolution is to be valid until the next annual general meeting or 15 months from the date of the resolution, whichever is the shorter; and (d) the repurchases will not be made at a price greater than 5 per centum above the weighted average of the market value for the securities for the five business days immediately preceding the date of repurchase. Notice of general authority to repurchase
146. (1) If, at its annual general meeting, an issuer seeks a general authority to repurchase its own securities,
the following information must be included in the notice convening the general meeting— (a) a statement of the board of directors’ intentions regarding the utilisation of the authority sought; (b) the maximum number of securities to be repurchased and the price and date at which the repurchase is to take place; (c) a statement by the directors that— (i) the company and the group will be able, in the ordinary course of business, to pay their debts for a period of 12 months after the date of the notice of annual general meeting; (ii) the assets of the issuer and the group will be in excess of the liabilities of the company and the group. For this purpose the assets and liabilities should be recognised and measured in accordance with the accounting policies used in the latest audited annual group financial statements; (iii) the ordinary capital and reserves of the issuer and the group will be adequate for a period of 12 months after the date of the notice of annual general meeting; and (iv) the working capital of the issuer and the group will be adequate for a period of 12 months after the date of the notice of annual general meeting. (d) a statement in the resolution that the authority sought will be limited to paragraphs (c) and (d) of
section 145 (2).
(2) If, at a meeting other than the annual general meeting, an issuer seeks a general authority to purchase its own securities, a circular complying with paragraphs (a) to (d) of subsection (1) must accompany the notice of general meeting and must also contain— (a) all information referred to in section 274 (contents of all circulars); and (b) general information including— (i) the names and addresses of directors; (ii) the identities of major shareholders; (iii) material changes; (iv) directors’ interest in securities; (v) share capital; (vi) a directors’ responsibility statement; and (vii) a litigation statement. (3) Financial information and auditors’reports referred to in sections 148(1) and (2) must be submitted to the ZSE before the company repurchases its securities on the open market. (4) Where an issuer fails to submit financial information as required under subsection (3) it shall be liable to a fine set out in Twenty-sixth Schedule.

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SUB-PART L: ANNOUNCEMENTS FOLLOWING REPURCHASE OF SECURITIES Open market
147. When a company has cumulatively repurchased 3 per centum of the initial number of the relevant
class of securities ( the number of that class of shares in issue when the general authority from shareholders is granted), and for each 3 per centum aggregate of the initial number of that class acquired thereafter, an announcement must be made as soon as possible, and in any event not later than the end of on the business day following the day on which the relevant threshold is reached or exceeded, and must contain the following information— (a) the dates of the repurchase of the securities; and (b) the highest and lowest prices paid for the securities; and (c) the number and value of securities repurchased; and (d) the extent of the authority outstanding by number and percentage, calculated on the number of shares in issue before any repurchases were made; and (e) a statement as to the source of funds utilised; and (f) a statement by the directors that— (i) the issuer and the group will be able in the ordinary course of business to pay its debts for a period of 12 months after the date of the announcement; and (ii) the assets of the issuer and the group will be in excess of the liabilities of the company and the group. For this purpose the assets and liabilities must be assessed in accordance with the accounting policies used in the latest audited group annual financial statements; and (iii) the ordinary capital and reserves of the issuer and the group will be adequate for a period of 12 months after the date of the announcement referred to in section 146; and (iv) the working capital of the company and the group will be adequate for a period of 12 months after the date of the announcement referred to in section 146; and (v) the effect of the repurchase on the earnings per share, the net asset value and the tangible net asset value per share; and (vi) the date on which the securities will be cancelled and their listing terminated, if applicable. SUB-PART M: FINANCIAL INFORMATION Historical financial information
148. (1) The company’s directors mustsubmit to the ZSE a copy of the audited annual financialstatements
of the issuer or the group, as appropriate. Where more than nine months have lapsed since the financial year￾end of the company and the company seeks to repurchase its securities, the company’s directors must prepare and submit to the ZSE the most recent interim report of the company or the group, required to have been distributed in terms of Part IV (continuing obligations). The interim report must include the auditors’ report and be prepared in accordance with IFRS requirements on Interim Reporting, any applicable statute and Part IX (financial information). (2) An issuer or its subsidiary may not repurchase securities within 40 business days before publication of its annual or interim results. The company or its subsidiary may not repurchase securities if the company is under cautionary announcement. (3) The requirements of sections 141 to 147 also apply to the purchase by a subsidiary of securities in its holding company except for transactions entered into on behalf of bona fide third parties by the company or any other member of its group on arms’ length terms. An issuer must obtain approval from its shareholders, in accordance with section 141(2) or section 145 before any major unlisted subsidiary of the listed company undertakes to purchase securities in its holding company. (4) If a company has announced that it will repurchase its securities, it must pursue the proposal unless the ZSE permits the company, on good cause, not to do so. (5) Where a repurchase by a company of its own securities is to be made, directly or through intermediaries, from a related party the requirements of Part XI (transactions with related parties) must be complied with unless—

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (a) a pro-rata offer is made to all holders of the class of securities on the same terms; or (b) in the case of an open-market repurchase pursuant to a general authority granted by shareholders, it is made without any prior understanding or arrangement between the company and the related party. (6) A company may only undertake a repurchase of securities if it can maintain shareholder spread requirements in accordance with Part IV after such repurchase. SUB-PART N: PURCHASE OF SECURITIES OTHER THAN EQUITY SHARES Notification of decision to repurchase
149. Where a company intends to make a proposal which is to be open to all holders in respect of all or
part of their holdings, or to repurchase any of its securities other than equity shares it must—
(a) ensure that no dealings in the relevant securities are carried out by or on behalf of the issuer or another member of its group, or its associate or subsidiary until the proposal has either been submitted to the ZSE or abandoned; and (b) notify the ZSE of its decision to repurchase unless the repurchase will consist of individual transactions in accordance with the terms of issue of the securities, whether for sinking fund purposes or otherwise. Notification of repurchases, early redemptions and cancellations
150. (1) Any repurchases, early redemptions or cancellations of an issuer’s securities, other than equity
shares, by or on behalf of the company or any other member of the group of which it is part, must be notified to the ZSE when an aggregate of three per centum of the initial number of the relevant class of securities has been purchased, redeemed or cancelled, and for each three per centum in aggregate of the initial number of that class acquired thereafter. (2) A notification under subsection (1) must be made as soon as possible and in any event not later than
08.30 hours on the business day following the day on which the relevant threshold is reached or exceeded, and
must contain the following information—
(a) the number of securities acquired, redeemed or cancelled since the last such notification; and (b) the number of the class of securities which remain outstanding; and (c) when the securities repurchased must be cancelled and their listing terminated, if applicable. Period between repurchase and notification
151. In circumstances where the repurchase is not being made pursuant to a general offer announced in
accordance with section 147 (announcements following repurchase of securities) and the repurchase causes a relevant threshold in section 141 (repurchase of securities) to be reached or exceeded, no further repurchases may be effected until after notification in compliance with section 141 has been made. Convertible securities
152. In the case of securities which are convertible into, exchangeable for, or carry a right to subscribe for
equity securities, repurchases must not be made at a price more than five per centum above the weighted average of the market value for the securities for the five business days immediately preceding the date of repurchase unless a partial offer is made to all holders of that class of securities on the same terms. Reduction of share capital
153. A company that wishes to reduce its share capital must—
(a) comply with the relevant provisions of the Companies Act [Chapter 24:03]; (b) obtain the approval of its shareholders in a general meeting held after the issue of a circular that includes a statement giving— (i) the directors’ opinions on the transaction; and (ii) a recommendation as to how shareholders should vote at the general meeting to approve the transaction; and

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(iii) an indication as to how the directors intend to vote; and (c) obtain the authorisation of shareholders given in terms of a general resolution. General authority to reduce share capital
154. If, at its annual general meeting, a company seeks a general authority to reduce its share capital, a
statement of the board of directors’intentions regarding the utilisation of the authority sought must be included in the notice of the general meeting. Circular for reduction of share capital
155. The circular referred for reduction of share capital must contain—
(a) the contents of all previous circulars referred to in section 274 (contents of all circulars); (b) general information on the company, including— (i) the names and addresses of the directors; (ii) the identity of major shareholders; (iii) material changes; (iv) directors’ interests in securities; (v) the share capital of the company; (vi) a directors’ responsibility statement; and (vii) a litigation statement. (c) the means and method by which the company intends to reduce its share capital; and (d) the effect on earnings per share and net asset value. SUB-PART O: GENERAL Exchange control approval
156. The ZSE will not approve an issue of securities unless it receives copies of any necessary authority
from the Reserve Bank of Zimbabwe, giving a ruling regarding the use of funds introduced through normal banking channels from abroad or from a non-resident account or from an emigrant’s blocked account relating to such issue. Securities registered in the name of nominee companies
157. (1) Where an issuer intends to enter into a transaction or scheme which may, in its effect, discriminate
between shareholders who hold the issuer’ssecurities beneficially through nominee companies and shareholders who hold the issuer ’s securities directly, the issuer must ensure that the nominee companies timeously provide it with lists, certified as correct by directors of the nominee companies, of the individual shareholdings of the beneficialshareholders as at the relevantrecord date, by number and name, in orderto ensure that allshareholders in the issuer receive equal treatment. (2) Subsection (1) applies to all issuer transactions which give rise to fractional entitlements, such as distributions in specie of, or subscriptions for, securities in subsidiary companies or capitalisation issues. Share certificates
158. (1) The ZSE may require certificates or other documents of title to be issued on the day of listing of
new securities or within seven days from the date of lodgement of the certificates for transfer or splitting. (2) All applicants that have not adopted Certified Transfer Deed Procedures must register scrip within 24 hours of receipt. (3) The ZSE may not grant a listing to an issue ofsecurities until the relevantshare certificates, or other documents of title, have been made available, except where the relevant securities arise out of an entitlement derived from a holding in a listed security. Deals entered into between the date of commencement of the listing and the date the document of title is made available must be settled during the week following the date the document of title is made available.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (4) Where it is proposed to issue share certificates which are distinct from existing listed securities, the company must submit to the ZSE a copy of the proposed certificate and a copy of the existing certificate. The procedures to be adopted thereafter must be agreed at this stage between the company and the ZSE. Over-allotment size
159. An over-allotment may not be more than 15 per centum of the issue size.
Acceptance of late postal deliveries
160. (1) Applicants must accept for registration deliveries bearing a postmark up to and including the
date of the last day to register which are received within three days of that date.
(2) The last day to register should be a Friday, but if the Friday is a holiday then the previous business day must be taken as the last day to register. (3) The ZSE will consider allowing the last day to register to fall on another day only in exceptional circumstances. Odd-lot offers
161. (1) Pursuant to subsection (2), an “odd-lot” offer occurs when an issuer intends reducing administrative
costs resulting from a large number of “odd-lot” holders. An “odd-lot”, is a total holding of less than 100 securities. (2) When an issuer proposes to make an odd-lot offer, holders may— (a) elect to retain their odd-lot holding; or (b) elect to top up their odd-lot holding to one hundred securities; or (c) elect to sell their odd-lot holding. (3) If the top up and sale prices are not the same, the prices must in all circumstances be to the advantage of the holders concerned. (4) Listed companies must not undertake odd-lot offers where they could lead to a contravention of the minimum spread requirements. (5) In any distribution, award or reconstruction where shareholders may receive odd-lot entitlements, the affected shareholders must, where the issuer wishes to compensate such shareholders in monetary terms, be given the opportunity to elect to receive such odd-lot entitlements. (6) In respect of odd-lot offers, the documents detailed in Part XVII must be submitted to the ZSE. (7) The document that requires publication regarding odd lot offers is set out in Part XII. Shares issued to sponsoring brokers and advisers in lieu of fees
162. Where an issuer issues shares to its sponsoring broker or to its advisers in lieu of fees, such shares
must be issued in compliance with this section. For new listings, such shares of the issuer must be held in trust by the issuer’s auditors or legal practitioners and may not be disposed of within two years from the date of listing.
PART VII
Pre-listing Statements
Requirement for pre-listing statement
163. When an issuer applies for listing of its securities it must publish a pre-listing statement containing
the particulars referred to in this Part.
Responsibility for pre-listing statement
164. (1) The pre-listing statement must include a statement in the form set out in section 193 (responsibility
statement) which may be modified in terms ofsubsections(2) or (3) or in such other manner as may be permitted by the ZSE. (2) If the pre-listing statement relates to securities issued in connection with a recommended take-over of the listed company and the directors of the other company accept responsibility for the information given

S.I. 134 of 2019 on that company in the pre-listing statement, then the directors of the applicant may accept responsibility only for the rest of the information in the pre-listing statement and the responsibility statement must be modified accordingly. (3) The ZSE may require responsibility to be extended to additional persons who have made specific statements in, or who have made contributions to, the pre-listing statement, in which case the statement must be modified accordingly. (4) The pre-listing statement must be signed by every director of the applicant or by his or her agent or legal practitioner, and a copy of the authority of any such agent or legal practitioner must be submitted with the pre-listing statement. Where responsibility for any information contained in different parts of the pre￾listing statement has been extended to or accepted by any other person in accordance with section 218 (experts consents), such other person or his or her agent or legal practitioner must also sign the pre-listing statement and it must be stated clearly for which part or parts of the pre-listing statement each signatory bears responsibility. Form and content of pre-listing statements
165. (1) Pre-listing statements must contain—
(a) the information prescribed in Part VIII (listing particulars) according to the nature and circumstances of the applicant and the type of security as specified in this Part; and (b) such additional information as the ZSE may consider investors and their professional advisers will reasonably require for the purposes of making an informed assessment of the prospects and status of the applicant. If the ZSE requires additional disclosure it will inform the applicant accordingly within seven business days in writing. (2) Pre-listing statements must provide factual information in words and figures and in a form that, as far as possible, is comprehensible and easy to analyse. (3) The ZSE may require that prominence be given in the pre-listing statement to important information in such manner as it considers appropriate. (4) In the case of pre-listing statements published by a new applicant, the following information must appear on the first page together with the names of the issuer, sponsoring brokers, bankers, auditors, reporting accountants, financial advisers, legal practitioners and any other specialist advisers— (a) share capital; (b) Responsibility statement; (c) particulars of the issue; (d) registration by the Registrar of Companies. (5) Pre-listing statements should not contain pictures, charts, graphs or other illustrations unless the ZSE is satisfied that this is the only way in which the information can be clearly presented. (6) Where the information required by a particular section is inappropriate to the applicant’s sphere of activity or legal nature, the information must, subject to section 169 (exclusion of information), be appropriately adapted so that equivalent information is given. (7) Possible risks to the issuer are required in all instances except where the ZSE advises otherwise. (8) Unless specified, all references to disclosure are as at the date the pre-listing statement is issued or as near to such date as practicable. (9) Where another company is to become part of an applicant’s group, that other company and its subsidiaries must be treated as part of the applicant’s group for the purpose of the information required by this
section.
(10) The ZSE will not require an indebtedness statement to be included in a pre-listing statement published in connection with an issue of securities where the issuer’s business is entirely or mainly that of banking, insurance or the provision of similar financial services, provided the ZSE is satisfied that— (a) the inclusion of such a statement would not provide significant information for investors; and (b) the applicant’s solvency and capital adequacy are suitably regulated by another regulatory body.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 Shareholder approval
166. If the issue of securities in respect of which the pre-listing statement is to be issued is made conditional
upon shareholder approval, the following statement must appear on the first page of the pre-listing statement— “This pre-listing statement has been prepared on the assumption that the ordinary and special resolutions proposed in the Notice of General Meeting forming part of the circular to which the pre-listing statement is attached will be passed at the General Meeting of shareholders to be held on …… and registered (if applicable).”. Formal approval for publication
167. (1) Pre-listing statements must be approved by the ZSE before publication. Such approval will only
be given if the ZSE considers that the information in the pre-listing statement is complete. (2) Pre-listing statements submitted to the ZSE for approval must be in the form of a typed document, but the ZSE may permit manuscript information relating to the number of securities and the price, and any figures derived from them, when these items are not settled until a later stage. Supplementary pre-listing statements
168. (1) The applicant must notify the ZSE of the need to publish a supplementary pre-listing
statement, which it should publish at any time after pre-listing statements have been published and in any case, 72 hours before dealings in the relevant securities commence if circumstances warranting any changes arise. (2) In the event that it is not possible to issue the supplementary pre-listing statement 72 hours before dealings commence, ZSE will declare the commencement of dealings postponed to a date approved by the ZSE. (3) Supplementary pre-listing statements must— (a) give details of any change or new matter; and (b) contain a statement that, save as disclosed, there has been no significant change and no significant new matter has arisen since publication of the previous particulars; and (c) contain a statement that a copy of the supplementary listing particulars has been delivered to the Registrar of Companies, if applicable. Exclusion of information
169. (1) If any information required by section 165 (form and content of prelisting statement) is not
applicable and no equivalent information is available, the ZSE must be informed in writing and approval of such exclusion obtained. (2) The ZSE may authorise the variation of information which is applicable if it satisfied that— (a) the information is of minor importance only and is not such as will influence assessment of the assets and liabilities, financial position, profits and losses and prospects of the applicant; (b) disclosure would be seriously detrimental to the applicant or would constitute an invasion of the applicant’s right to privacy, and non-inclusion is not likely to mislead investors with regard to facts and circumstances, the knowledge of which is essential for the assessment of the securities in question. (3) Requests to the ZSE to authorise any exclusion of information must— (a) be made in writing by the applicant or by the applicant’s sponsoring broker; or (b) identify the information concerned and the reasons for the non-inclusion; and (c) state why, in the opinion of the applicant, one or more of the grounds in this subsection (2) applies. Exclusion of significant contract from disclosure
170. Full disclosure of a significant contract is required, but the ZSE may allow all or part of such a
contract to be withheld frompublic inspection upon requestmade in writing by the applicant or by the applicant’s sponsoring broker—

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(a) stating why, in the opinion of the applicant, one or more of the grounds in section 169(3) applies; and (b) enclosing a copy of the contract concerned and an outline of its terms; and (c) including a confirmation by the applicant that the contract is a significant contract. Issues not requiring pre-listing statements
171. (1) Pre-listing statements are not required for issues of securities by an applicant whose securities
are already listed and fall into the following categories— (a) securities resulting from the conversion of convertible securities; (b) securities resulting from the exercise of rights under options; (c) securities issued in place of securities already listed, provided that there is no increase in the nominal value of the share capital as a result; (d) securities allotted to employees, if securities of the same class are already listed; (e) issues relating to the extension of a business contemplated by and previously described in a pre￾listing statement in respect of which the requirement to issue a pre-listing statement may be waived or the requirements reduced at the discretion of the ZSE; (f) securities resulting from capitalisation issues; or (g) issues of securities, including rights issues, which, together with any securities of the same class issued in the previous 3 months, would increase the securities issued by less than 30 per centum. For this purpose a series of issues in connection with a single transaction, or series of transactions that is regarded by the ZSE as a single transaction, will be deemed to be a single issue. (2) In cases where pre-listing statements are not required under paragraphs (a) to (f) of subsection (1), the following information must be published by way of a press announcement— (a) where the issue would increase the securities of the relevant class by 30 per centum or more, the names and addresses of directors, directors’responsibility statement and pro-forma financial statements; (b) where the issue would increase the securities of the relevant class by less than 30 per centum but more than 10 per centum, the number and type of securities to be admitted and the circumstances of their issue. (3) In cases where a pre-listing statement is not required under subsection (1) the ZSE may require the applicant to publish further information which the ZSE considers investors and their professional advisers may reasonably need in order to make an informed assessment of the applicant’s prospects and status. (4) Information required under subsection (1) must be published by way of a press announcement and, if the ZSE so requires, by way of a circular to shareholders. Acquisition and merger issues
172. In relation to an acquisition or merger where the consideration for a purchase of assets is regulated
by Part X(transactions), or where the consideration being offered consists of securities for which listing will be sought, the ZSE may require pre-listing statements as described in section 173 and Part X. Pre-listing statements may be necessary either as a result of the original terms of the offer or as a result of a revision of the terms during the course of an offer. Where pre-listing statements have already been published and the offer is revised, the ZSE may require supplementary pre-listing statements as provided in section 174. Requirements of pre-listing statements regarding acquisition and merger issues
173. Pre-listing statements issued in accordance with section 172 must comply with the relevant requirements
of this Part subject to the following—
(a) references in Part VIII (listing particulars) to the applicant’s group will not, except as required by paragraphs (b) and (c), include the offeree company and its subsidiaries unless it has become a member of the applicant’s group by the time the pre-listing statements are published; and

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (b) the informationregardingmajorshareholders,majorinterestsinsecurities anddirectors’interestsin securities must be given in relation to the applicant’sshare capital both as existing and as enlarged by the securities for which listing is sought; and (c) if the offer— (i) is recommended by the board of the offeree company at the time of the publication of an offer document, the applicant must publish a statement as to the adequacy of working capital and details of material loans on the basis that the acquisition has taken place; (ii) has not been recommended by the board of the offeree at the time of the publication of an offer document, the applicant must publish its own statement as to the adequacy of working capital and details of material loans, but the ZSE will allow the statement as to the adequacy of working capital and details of material loans on the combined basis to be given later, in a circular or supplementary pre-listing statement which must be published, in the absence of exceptional circumstances, within 28 calendar days after the offer is declared wholly unconditional. In the latter case, the pre-listing statement must state that the statements on a combined basis will be available within 48 hours, and the applicant must make them available within that time. Publication and distribution of pre-listing statements to shareholders
174. Pre-listing statements or supplementary pre-listing statements must be published in full or in an
abridged form in accordance with Part XII (circulars, prelisting statements, and prospectus and press statements) and distributed to all shareholders in accordance with Part IV (continuing obligations). Where pre-listing statements are revised or supplementary pre-listing statements are prepared they should ordinarily be published and circulated to shareholders at the time of despatch of the revised offer document. In a proper case the ZSE may permit pre-listing statements to be published and circulated after the despatch of the revised offer documents but before listing is granted. New applicants and issuers not issuing prospectus
175. (1) New applicants not issuing a prospectus are required to provide the following information in the
pre-listing statement—
(a) directors, managers and advisers; and
(b) securities for which application is being made; and (c) group’s activities in terms; and (d) financial information. (2) Existing listed companies not issuing a prospectus are required to provide all the information in
Part VIII in the pre-listing statement except information provided for in terms of—
(a) sections 210 and 211(1) and (4);
(b) section 219(1) (a) and (j);
(c) section 240(1).
PART VIII
sub-part a: Listing Particulars
Applicant’s name, address and business
176. The applicant must disclose—
(a) name of the applicant and addresses of the registered office; and (b) the details of the transfer office, the applicant’s date and place of incorporation; or (c) if an external applicant, proof of incorporation and the date of registration in Zimbabwe; (d) if the applicant is a subsidiary, the name and address of the registered office of its parent;

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(e) if the applicant has changed its name within the last three years the old name must be disclosed alongside the existing name on the first page; and (f) brief description of the applicant’s business. Share capital
177. (1) If the applicant’s share capital consists of shares of par value it must disclose—
(a) the authorised and issued, or agreed to be issued, share capital detailing— (i) the classes of shares; and (ii) the number of shares in each class; and (iii) the nominal value of each class; and (iv) the amount paid up for each class; and (b) any share premium. (2) If the applicant’s share capital consists of shares of no par value it must disclose— (a) the stated capital; and (b) the number of shares issued and held in reserve; and (c) the classes of shares. (3) Applicant must disclose the description of the respective— (a) preferential, conversion and exchange rights; (b) voting rights; and (c) rights to dividends, profits or capital or any other rights of each class, including redemption rights and rights on liquidation or distribution of capital assets. (4) Applicant must disclose information regarding the consents necessary for the variation of rights attaching to securities. (5) A summary of any issues or offers of securities of the applicant and its subsidiaries during the preceding three years must be disclosed, including— (a) the prices and terms at which such securities were issued or offered; (b) by whom any such offers were so made; (c) the number of securities allotted in pursuance of the issues and offers; (d) whether the securities were issued to all shareholders in proportion to their shareholdings or, if not, to whom they were issued, the reasons why the securities were not so issued and the basis of allotment; (e) the dates of the issues or offers; (f) the reasons for any premium or discount on the issue or offer, how any premium was dealt with and, if some securities were issued or offered at a premium and others at par or a lower premium, the reasons for the differential; (g) the value of the asset, if any, acquired or to be acquired out of the proceeds of the issue or offer, together with such further detail as required by the Companies Act [Chapter 24:03]; and (h) details of any share repurchases, i.e. the number of shares purchased and the average share price. (6) The applicant must disclose a –– (a) summary of any consolidations or sub-divisions of the shares during the preceding three years or such lesser period as the company has been trading, together with details of commissions and underwriting costs as required by the Fourth Schedule to the Companies Act [Chapter 24:03]; (b) statement as to who controls the issue or disposal of the authorised but unissued securities, that is, the directors or the shareholders in general meeting; (c) statement as to what other classes of securities are listed and on which securities exchanges.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 Borrowing powers
178. (1) The requirement for trust deeds in respect of debentures as set out in the Fifteenth Schedule must
be complied with. With regard to borrowing, the applicant shall also be obliged to disclose the borrowing powers of the applicant and its subsidiaries exercisable by the directors and the manner in which such borrowing powers may be varied. (2) The following information should be disclosed— (a) if the borrowing powers have been exceeded during the past three years, a description of the circumstances in which they were exceeded; (b) any exchange control or other restrictions on the borrowing powers of the applicant or any of its subsidiaries; (c) the amount of debentures created in terms of the trust deed and the amount issued or agreed to be issued; (d) details of material loans, including debentures, to the applicant and to any of its subsidiaries, stating— (i) whether such loans are secured or unsecured and details of the security, if any; (ii) the names of the lenders, if they are not debenture holders; (iii) the amount, terms and conditions of repayment or renewal; (iv) the rates of interest on each loan; (v) details of conversion rights; and (vi) where the applicant or any of its subsidiaries have debts which are repayable within 12 months from the date of the application, a statement of how the payments must be financed. (3) In addition to the requirements stated in subsection (1), the applicant must disclose–– (a) particulars relating to debentures, or debenture stock issued by way of conversion or replacement of debentures or debenture stock previously issued, stating all material differences between the security for the old stock and the security for the new stock, or (if such be the case) a statement that the security for the new stock is identical with the security for the old stock; (b) details of all material commitments, lease payments and contingent liabilities; (c) details of all off-balance-sheet financing by the applicant and any of its subsidiaries; and (d) how the borrowings required to be disclosed by subsection 2(d) arose, stating whether they arose from the purchase of assets by the applicant or any of its subsidiaries. If no loan capital is outstanding, this fact must be stated. Loans receivable
179. The applicant is required to disclose––
(a) details of material loans by the applicant or by any of its subsidiaries, stating— (i) the date of the loan; (ii) to whom the loan was made; (iii) interest and repayment terms; (iv) if the interest is in arrears, the last date on which it was paid and the extent of the arrears; (v) the period of the loan; (vi) the nature of security held; (vii) the value of such security and the method of valuation; (viii) if the loan is unsecured, the reasons for the lack of security; and (ix) if the loan was made to another company, the names and addresses of the directors of such company;

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(b) details as described in subparagraph (a) of loans made or security furnished by the applicant or by any of its subsidiaries made for the benefit of any director or manager or any associate of any director or manager; (c) explanation of how the loans receivable arose, stating whether they arose from the sale of assets by the applicant or any of its subsidiaries. Options or preferential rights in respect of securities
180. (1) Disclosure from the applicant shall be required of ––
(a) the substance of any contract or arrangement, or proposed contract or arrangement, whereby any option or preferential right of any kind was or is proposed to be given to any person to subscribe for any securities of the applicant or any of its subsidiaries, giving the number and description of any such securities, including, in regard to the option or right, particulars of— (i) the period for which it is exercisable; (ii) the price to be paid for securities subscribed for under it; (iii) the consideration given or to be given for it; (iv) the names and addresses of the persons to whom it was given, other than existing shareholders as such or to employees under a bona fide staff option scheme; (v) if given to existing shareholders as such, material particulars thereof; and (vi) any other significant fact or circumstances concerning the granting of such option or right. (2) For the purpose of subsection (1) subscribing for securities includes acquiring them from a person to whom they were allotted or were agreed to be allotted with a view to that person offering them for sale. Controlling shareholders
181. With regard to controlling shares disclosure must include––
(a) the names of the controlling shareholder(s) so far as they are known to the directors of the applicant, or a statement that there are no such shareholders or that their names are not known; (b) details of any change in controlling shareholder(s) as a result of the issue. Major shareholders
182. In so far as is known to the applicant, the name of any shareholder, other than a director, who is
directly or indirectly beneficially interested in 5 per centum or more of any class of the applicant’s capital, together with the amount of each such shareholder’s interest or, if there are no such shareholders, a statement of that fact must be disclosed. Directors, managers and advisers
183. The following sections detail the disclosure requirements relating to directors, managers and advisers.
Directors and management
184. (1) Directors, managers and advisors are required to disclose––
(a) the full name (and, if relevant, any former name), business address and function in the group of each of the following persons, and an indication of the principal activities performed by them outside the group, where these are significant with respect to the group— (i) directors of the applicant and its subsidiaries; (ii) partners with unlimited liability, in the case of a limited partnership with share capital; (iii) founders, if the applicant has been established for fewer than five years; and (iv) in the case of a new applicant and its subsidiaries, any senior manager who is relevant to establishing that the requirements of section 78 have been met. (b) in the case of each person described in this section details of that person’s relevant management expertise and experience and the following information—

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (i) full names (specifying the chairperson, chief executive officer and managing director, if any); (ii) occupations; (iii) business addresses; (iv) nationalities; (v) the names of all companies and partnerships of which such person has been a director or partner at any time in the previous five years, indicating whether or not the person is still a director or partner. It is not necessary to list all the subsidiaries of the applicant of which the person is also a director; (vi) if the person, whether in Zimbabwe or elsewhere, has at any time been declared insolvent or bankrupt or has assigned his or her estate for the benefit of creditors, details of every such occasion; (vii) if any company of which the person was a director, whether in Zimbabwe or elsewhere— A. was wound up at the instance of creditors, whether compulsorily or voluntarily; B. was placed under corporate rescue; or
C. entered into a composition or arrangement with its creditors generally or any class of
its creditors; while the person was a director or within 12 months after he or she ceased to be a director, details of the event or occurrence; (viii) if any partnership of which the person was a partner, whether in Zimbabwe or elsewhere, underwent any event or occurrence referred to in paragraph (b) (vi) or (vii) while the person was a partner or within 12 months after he or she ceased to be a partner, details of the event or occurrence; (ix) details of any public criticism of the person by any statutory or regulatory authority (including a recognised professional body) and whether the person has ever been disqualified by a court from acting as director of a company or from acting in the management or conduct of the affairs of any company; and (x) in the case of a senior manager, any conviction of the person for an offence involving dishonesty, giving details of the offence and the sentence imposed on the person. (c) details ofthe information contained in the director’s declaration asset out inTwenty-first Schedule of these rules; (d) in the case of a foreign applicant, information equivalent to that described above, in relation to its Zimbabwean executive management, if any; (e) the term of office for which any director has been or is to be appointed, the manner in and terms on which any proposed director will be appointed and particulars of any right held by any person relating to the appointment of any director; (f) the provisions of the articles of association or other corresponding document of the applicant and each of its subsidiaries (or an accurate summary of those provisions) with regard to— (i) the qualifications of directors; (ii) the remuneration of directors; and (iii) any power enabling the directors to vote on remuneration to themselves or any members of their body. (2) In addition to disclosure referred to in subsection (1) the applicant must disclose–– (a) an analysis of the emoluments which were paid or payable, or were proposed to be paid, by the applicant or the group of which the applicant is a member, to the board of directors as a whole and to each individual director or proposed director, during the last two financial periods; (b) the analysis must distinguish between emoluments paid or payable to executive directors and those paid or payable to non-executive directors; (c) emoluments to be covered in the analysis include—

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(i) emoluments paid to the directors in their capacities as such or in any other capacity, whether the emoluments were determined by the applicant’s articles or in any other way; (ii) fees for services as a director; (iii) management, consulting, technical or other fees paid for such services rendered, directly or indirectly, including payments to management companies, a part of which is then paid to a director of the company; (iv) basic salary; (v) bonuses and performance-related payments; (vi) sums paid by way of expense allowance; (vii) any other material benefits received; (viii) contributions paid under any pension scheme; (ix) any commission, gain or profit-sharing arrangements; and (x) in respect of share options or any other right given to the directors which has had the same or a similar effect in respect of providing a right to subscribe for shares (“share options”)— A. the opening balance of share options, including the number of share options at each different strike price; B. the number of share options awarded and their strike prices;
C. the strike dates of differing lots of options awarded, where the options have already
been exercised in the past three years;
D. the number of share options exercised and at what prices; E. the closing balance of share options, including the number of share options at each different strike price; F. the disclosure of policy relating to the exercise of share option scheme; (d) any shares issued and allotted in terms of a share purchase or option scheme for employees (or other scheme or structure effected outside the applicant which achieves substantially the same objectives as a share purchase or option scheme), usually held as a pledge against an outstanding loan to an employee in a share purchase scheme trust, which have not been fully paid for, including the number so issued and allotted, the price of issue and allotment, the release periods applicable to such shares and any other relevant information; (e) the information specified in paragraph (x) of subsection (2)(c) may be presented in tabular form; (f) without derogating from the generality of subsection 2, the directors’ emoluments disclosed in accordance with that subsection must include disclosure of all emoluments received or receivable from the following entities— (i) the applicant’s holding company; (ii) the applicant’s subsidiaries and fellow subsidiaries; (iii) associates of the entities referred to in paragraphs (i) and (ii); (iv) joint ventures of the applicant or of any entity referred to in paragraph (i), (ii) or (iii); and (v) entities that provide management or advisory services to the applicant or to any entity referred to in paragraph (i), (ii), (iii) or (iv). (3) Other requirements for disclosure are –– (a) fees paid or accrued as payable to a third party in lieu of directors’ fees must be disclosed in a similar manner as that detailed in subsection (2); (b) if the remuneration receivable by any of the directors of the applicant will be varied in consequence of any transaction, full particulars of the aggregate variation in the remuneration of the directors concerned must be stated, and if there is no variation, there must be a statement to that effect; (c) if the business of the applicant or any of its subsidiaries or any part thereof is managed or is proposed to be managed by a third party under a contract or arrangement, the third party’s name and address, or the address of its registered office if a company, and a description of the business

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 so managed or to be managed and the consideration paid in terms of the contract or arrangement and any other pertinent details relevant to such contract or arrangement; (d) a summary of the provisions of the applicant’s constitutive documents with regard to— (i) any power enabling a director to vote on a proposal, arrangement or contract in which he or she is materially interested; (ii) any power enabling the directors, in the absence of an independent quorum, to vote on remuneration (including pension or other benefits) to themselves or any members of their board; (iii) borrowing powers exercisable by the directors and how such borrowing powers can be varied; and (iv) whether there is an age-limit beyond which directors cannot continue serving and, if there is such a limit, the age at which they must retire. Secretary
185. The full name, physical and postal address and professional qualifications of the company secretary
of the applicant and any former forenames or surnames must be disclosed (refer to the Twenty-fifth Schedule). Auditor, legal practitioner, banker, stockbroker, trustee, underwriter (including sub-underwriter where applicable) and expert
186. The names and physical and postal addresses of the applicant’s auditor, legal practitioner, banker
and securities dealer and, if applicable, the trustee, underwriter (including sub-underwriter where applicable) and any expert referred to in the pre-listing statement and any holding of securities in or agreed to be acquired in the applicant by such persons must be disclosed. Amounts paid or payable to promoter
187. The amount paid within the preceding three years or proposed to be paid to any promoter, with his
or her name and address, or to any partnership, syndicate or other association of which he or she is or was a member, and the consideration for such payment, and any other benefit given to such promoter, partnership, syndicate or other association within the said period or proposed to be given, and the consideration for the giving of such benefit must be disclosed. Commissions paid or payable in respect of underwriting
188. (1) The following must be disclosed in relation to commissions paid or payable in respect of
underwriting—
(a) the amount, if any, or the nature and extent of any consideration, paid within the preceding three years, or payable, as commission to any person (including commission so paid or payable to any sub-underwriter which isthe holding company or a promoter or director or officer of the applicant) for subscribing or agreeing to subscribe, or procuring or agreeing to procure subscriptions for any securities of the applicant; (b) the name, occupation and address of each such person, particulars of the amounts underwritten or sub-underwritten by each and the rate of the commission payable for such underwriting or sub-underwriting contract with such person; and (c) if such person is a company, the names of its directors and the nature and extent of any beneficial interest, direct or indirect, in such company of any promoter, director or officer of the applicant in respect of which the pre-listing statement is issued. (2) In addition to subsection (1), further disclosure is required of–– (a) particulars of any commissions, discounts, brokerages or other special terms granted during the three years preceding the application and the pre-listing statement in connection with the issue or sale of any securities, stock or debentures in the capital of the applicant, where this has not been disclosed in any annual accounts; (b) commission payable on the issue of shares is not expected to exceed five per centum of the price at which the shares were issued and must be authorised in the articles. Where the expenses exceed five per centum, the applicant must satisfy the ZSE why they do so;

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Preliminary expenses and issue expenses
189. (1) The following disclosure is required with respect to preliminary expenses and issue expenses—
(a) the amount or estimated amount of preliminary expenses, if incurred within three years of the date of the pre-listing statement, and the persons by whom or to whom any of those expenses were paid or are payable; and (b) the amount or estimated amount of the expenses of the issue (including the ZSE listing and inspection fee) and the persons by whom or to whom any of those expenses were paid or are payable. (2) For the purposes of subsection (1)(b) there must be separate disclosure of each sponsoring broker, financial adviser, corporate adviserlegalpractitioner, commercialbanker,investmentbanker, accountant, auditor, underwriter, sub-underwriter and any other adviser involved, where there are two or more of such advisers per advisory category, and the individual amounts paid or payable to each such individual person or adviser by the applicant. (3) Amounts paid or payable to auditors must be broken down into audit and non-audit fees. Interest of directors and promoter
190. (1) Disclosure of the following is required––
(a) full particulars of the nature and extent of any material beneficial interest, direct or indirect, of every director or promoter in the promotion of the applicant and in any property referred to in
section 192 acquired or proposed to be acquired by the applicant out of the proceeds of the issue
or during the three years preceding the date of the listing statement; (b) where the interest of a director or promoter consists of being a member of a partnership, company, syndicate or other association of persons, there must be disclosure of the nature and extent of the interest of such partnership, company, syndicate or other association, and the nature and extent of such director’s or promoter’s interest in the partnership, company, syndicate or other association. (2) A statement of all sums paid or agreed to be paid within the three years preceding the date of the pre-listing statement to any director or to any company in which he or she is beneficially interested, directly or indirectly, or of which he or she is a director, or to any partnership, syndicate or other association of which he or she is a member, in cash or securities or otherwise, by any person either to induce him or her to become or to qualify him or her as a director, or otherwise for services rendered by him or her or by the company, partnership, syndicate or other association in connection with the promotion or formation of the applicant. Directors’ interests in securities
191. A statement showing the aggregate of the direct and indirect interests of the directors in, and the direct
and indirect interests of each director’s holding of, the share capital of the applicant distinguishing between beneficial and non-beneficial interests must be submitted. The statement should include by way of a note any change in those interests occurring between the end of the financial year and the date of the pre-listing statement or, if there has been no such change, a statement to that effect. Directors’ interests in transactions
192. When disclosing Directors’interests in transactions, all relevant particulars regarding the nature and
extent of any beneficial interests, whether direct or indirect, of the applicant’s directors in transactions which were effected by the applicant— (a) during the current or immediately preceding financial year; or (b) during an earlier financial year, where the transactions remain in any respect outstanding or underperformed:
Provided that where there are no such transactions, a statement to that effect must be submitted. Responsibility statement
193. A directors’ responsibility statement must be disclosed as follows—
“The directors, whose names are given in section … on page … of this document, collectively and individually accept full responsibility for the accuracy of the information given and certify that to the best

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 of their knowledge and belief there are no other facts the omission of which would make any statement false or misleading, that they have made all reasonable enquiries to ascertain such facts and (if applicable) that the prospectus contains all information required by law. The directors confirm that the listing particulars include all such information within their knowledge (or which it would be reasonable for them to obtain by making enquiries) as investors and their professional advisers would reasonably require and reasonably expect to find for the purpose of making an informed assessment of the assets and liabilities, financial position, profits and losses and prospects of the issuer and of the rights attaching to the securities to which the listing particulars relate.”. Responsibility of directors, managers and advisers
194. (1) On submission of a listing circular, it is a requirement that the circular be signed by every director
of the applicant or by his or her agent.
(2) Where responsibility for any information contained in different parts of the circular has been extended to or accepted by any other person, that other person or his or her agent must also sign the circular and it must be stated clearly for which part or parts of the pre-listing statement each signatory bears responsibility. (3)Where the circular is signed by an agent, a copy of the agent’s authority must be included in the circular. SUB-PART B: SECURITIES FOR WHICH APPLICATION IS BEING MADE Purpose and particulars of the issue or offer
195. A statement of the purpose of the issue, giving reasons why it is considered necessary for the applicant
to raise the capital offered or, if it is a sale, the reasons for the sale, and if the capital offered is more than the amount of the minimum subscription referred to in section 198, the reasons for the difference between the capital offered and the minimum subscription must be disclosed–– (a) for particulars of the securities issued or offered, including— (i) the class of securities; (ii) the nominal value of the securities, if applicable; (iii) the number of securities issued or offered; (iv) the issue or offer price; (v) how the new securities rank for dividend; (vi) whether the new securities rank pari-passu with any existing listed securities; (vii) any convertibility or redemption provisions; (viii) the nature of the document of title; (ix) the treatment of any fractions; and (x) other terms and conditions of the issue or offer. (b) for particulars of the debentures issued or offered, including— (i) the class of debentures; (ii) the terms and conditions of the debentures; (iii) if the debentures are secured, particulars of the security, specifying the assets or property comprising the security and nature of the title to the asset; and (iv) other terms and conditions of the issue or offer. Timing of subscription lists
196. Disclosure is required––
(a) if applicable, the times and dates of the opening and of the closing of the subscription lists, issue or offer; (b) if known, the dates on which the securities will be admitted to listing and on which dealings will commence;

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Issue price
197. (1) In terms of issue price the following must be disclosed ––
(a) the amount payable by way of premium, if any, on each security which is to be issued and, where some securities must be issued at a premium and other securities at par or at a lower premium, the reasons for the differentiation, and how any such premium is to be dealt with; (b) where no par value shares must be issued, the price at which they must be issued and the reasons for any differentiation. Minimum subscription
198. When disclosure is concerned with minimum subscriptions, the minimum amount which, in the
opinion of the directors, must be raised by the issue or offer of the securities in order to provide the sums or, if any part of the issue or offer is to be defrayed in any other manner, the balance of the sums required to be provided, in respect of each of the following matters— (a) the purchase price of any property, as referred to in section 192 (directors interests in transactions), purchased or to be purchased, which is to be defrayed in whole or in part out of the proceeds of the issue, including goodwill, if any; (b) any preliminary expenses payable by the applicant, and any commission payable to any person in consideration for his or her agreeing to subscribe for, or of his or her procuring or agreeing to procure subscriptions for or of his or her underwriting, any securities of the applicant and the amount or estimated amount of the expenses of the issue; (c) the repayment of any moneys borrowed in respect of any of the foregoing matters; (d) working capital, stating the specific purposes for which it is to be used and the estimated amount required for each such purpose; (e) any other material expenditure, stating the nature and purposes thereof and the estimated amount in each case; and (f) the amounts to be provided in respect of the matters referred to in paragraphs (a) to (e), otherwise than out of other proceeds of the issue, and the sources from which those amounts must be provided. Lodging of prospectus with the Registrar of companies
199. If the pre-listing statement is a prospectus, a statement that a copy of the pre-listing statement has
been registered by the Registrar of Companies in terms of the Companies Act [Chapter 24:03] and the date of such registration must be disclosed. Disclosure of authorisations
200. A statement of the resolutions, authorisations and approvals by virtue of which the securities have
been or will be created or issued must be disclosed.
Dividends disclosure
201. An applicant is required to disclose––
(a) the time limit, if any, after which entitlement to dividends lapses, and an indication of the person in whose favour the lapse operates; (b) the date or dates, if any, on which entitlement to dividends arise; (c) particulars of any arrangement under which future dividends are waived or agreed to be waived. Market value of securities
202. Where the securities for which application is being made are of a class which is already listed, a table
of the aggregate volumes traded and the highest and lowest prices traded in those securities— (a) for each month over the twelve months prior to the date on which the pre-listing statement or circular was issued; and (b) for each quarter over the previous two years; and

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (c) for each day over the 30 days preceding the last practicable date prior to the issue of the pre-listing statement or circular; must be disclosed. Rights offers, capitalisation issues and scrip dividends
203. (1) Where the securities for which application is being made are allotted by way of capitalisation
of reserves or undistributed profits or the application of a share premium to the holders of an existing listed security, the following information must be disclosed— (a) the reason for the capitalisation issue or scrip dividend; and (b) the share class and the par value, if any; and (c) if applicable, that the shareholder may receive cash in substitution for the whole or part of their capitalisation issue or scrip dividend and vice versa; and (d) if applicable, the last day on which shareholders must make their election; and (e) a statement pointing out possible tax implications; and (f) in the case of a scrip dividend, a statement in bold and upper case, on the front page, drawing shareholders’ attention to the type of election to be made (for instance, that shareholders will receive cash if they fail to make the election); and (g) the amount to be capitalised from the share premium or reserves of the applicant to pay up in full for the capitalisation securities; and (h) the ratio in which the capitalisation securities will be allotted to shareholders of the applicant; and (i) the last day on which a shareholder must be registered in order to receive the capitalisation securities or scrip dividend; and (j) whether or not the documents of title, if any, are renounceable. (2) In the case of a rights offer, the following information must be disclosed— (a) the purpose of the rights offer; and (b) the minimum sum to be raised through the rights offer to satisfy its purpose; and (c) the amount to be raised by means of the rights offer, and the number of securities that are proposed to be issued; and (d) the terms of the offer and where the ratio gives rise to fractions, a table of entitlements must be included in the circular; and (e) a statement regarding fractions ofsecurities, whereby normally fractions are sold for the benefit of the company, however, should the value of a fraction be in excess of 500 cents then such amount must be paid to the shareholders concerned; and (f) details of the underwriter (and sub-underwriter where applicable), with a clear statement of the underwriting commission; and (g) where the underwriter (and sub-underwriter where applicable) is a company, the following information must be furnished— (i) the place and date of incorporation and registered number of the company; and (ii) the names of the directors; and (iii) the name of the company secretary; and (iv) the company’s bankers; and (v) the authorised and issued share capital. (h) details regarding the proposed listing of the letters of allocation, the subsequent listing of the new securities and the amount payable in respect of listing fees; (i) details regarding the letters of allocation such as—

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(i) acceptance; and
(ii) renunciation; and
(iii) splitting; and
(iv) payment (payment must be made in the prevailing official currency); and (j) a statement detailing the requirements, if any, of the Reserve Bank of Zimbabwe. Simultaneous issues
204. If simultaneously or almost simultaneously with the issue of securities for which application is being
made, securities of the same class are issued or to be issued, details must be provided of the nature of those issues and of the number and characteristics of the securities concerned. Over-subscriptions
205. Where it is the intention, in the event of over-subscription, to extend a preference on allotment to any
particular company or group such as employees and pension funds, a statement of that fact must be disclosed. SUB-PART C: GROUP’S ACTIVITIES Disclosure of general history of applicant
206. (1) The general history of the applicant and its subsidiaries, stating, inter alia—
(a) the length of time during which the business of the applicant and of any subsidiary has been carried on; and (b) the name, date, place of incorporation and registration number and the issued or stated capital of the applicant’ssubsidiaries, together with details of the securities held by the applicant, indicating those not listed on the ZSE and the main business of its subsidiaries and the date on which each of them became a subsidiary; and (c) brief particulars of any alteration of the applicant’s capital during the past three years; and (d) the date of conversion of the applicant into a public company; must be disclosed. (2) A general description of the business carried or to be carried on by the applicant and its subsidiaries and, where the applicant or its subsidiaries carry on or propose to carry on two or more businesses which are material having regard to the profits orlosses, assets employed orto be employed or any otherfactor, information as to the relative importance of each such business must be provided. (3) For each business described in subsection (2), details of any government protection and any investment promotion law that affects the business must be provided. (4) Details of any material changes in the businesses of the applicant during the past five years must be provided. (5) The opinion of the directors, stating the grounds for their opinion, as to the prospects of the business of the applicant and of its subsidiaries and of any subsidiary or business undertaking to be acquired, together with any material information which may be relevant thereto must be provided. (6) The situation, area and tenure (including, in the case of leased property, the rent and unexpired term of the lease) of the principal immovable property held or occupied by the applicant and any of its subsidiaries must be provided. (7)Fullinformationof allmaterialinter-companyfinancial andothertransactions,withspecificdisclosure of all inter-company balances before elimination on consolidation must be provided. (8) The applicant must provide–– (a) the history of the change in each controlling shareholder and trading objects of the applicant and its subsidiaries during the previous five years; and (b) a statement of the new trading objects and the manner in which the new objects will be implemented; and

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (c) if the applicant or, as the case may be, the group carries on widely differing operations, a statement showing the contributions of such respective differing operations to its trading results; and (d) the proposed new name, if any, the reasons for the change and whether or not consent to the change has been obtained from the Registrar of Companies. Property acquired or to be acquired by the applicant
207. Where, within the three years preceding the date of the circular, the applicant or any of its subsidiaries
acquired or proposes to acquire any securities in or the business undertaking of any other company or business enterprise or any immovable property or other property in the nature of a fixed asset, collectively “the property”, or any option to acquire such property, the following information must be provided— (a) the date of any such acquisition or proposed acquisition; (b) the consideration, detailing that settled by the issue of securities, the payment of cash or by any other means, and detailing how any outstanding consideration is to be settled; (c) details of the valuation of the property; (d) any goodwill paid and how such goodwill was or is to be accounted for; (e) any loans incurred, or to be incurred, to finance the acquisition or proposed acquisition; (f) the nature of title or interest acquired or to be acquired; and (g) the details regarding the vendors as described in section 220; Disposal of property by the applicant
208. The following details regarding any property described in section 207 disposed of during the past
three years, or to be disposed of, by the applicant or any of its subsidiaries must be provided— (a) the dates of any such disposal or proposed disposal; and (b) the consideration received, detailing that settled by the receipt of securities, or cash or by other means and detailing how any outstanding consideration is to be settled; and (c) details of the valuation of the property; and (d) the names and addresses of the purchasers of assets sold. If any purchaser was a company, the names and addresses of the beneficial shareholders of the company. If any promoter or director had any interest, directly or indirectly, in such transaction or where any promoter or director was a member of a partnership, syndicate or other association of persons which had such interest, the names of any such promoter or director, and the nature and extent of his or her interest. Disclosure of litigation proceedings against the applicant
209. The applicant must disclose ––
(a) information on any legal or arbitration proceedings, including any such proceedings which are pending or threatened of which the applicant is aware, which may have or have had in the recent past, covering at least the previous 12 months, a material effect of the group’s financial position; and (b) where there are no proceedings such as are referred to in paragraph (a), a statement to that effect. Accountants’ reports
210. The following information must be provided ––
(a) an accountants’ report on the applicant, as set out in Part IX (financial information); (b) if applicable, an accountants’report, as set out in Part IX, on the asset which is the subject of the transaction. Report of historical financial information
211. (1) The requirements set out in Part IX must be complied with and included in the pre-listing
statement.
(2) The following information from the applicant’slatest annual financialstatements on a consolidation basis must be provided—

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(a) the statement of profit or loss and other comprehensive income; (b) the statement of financial position; (c) the cash flow statement; (d) any significant accounting policies or notes to the financial statements; (e) retirement benefit information as required by the Companies Act [Chapter 24:03]; and (f) a statement that the auditors’report was without qualification or, if it was qualified, details ofsuch qualification. (3) Where more than nine months have elapsed since the end of the financial year to which the last published annual financial statements relate, an interim report covering at least the first six months following the end of that financial year must be included in or appended to the pre-listing statement. If such an interim report is unaudited, that fact must be stated. (4) If the applicant’s own annual or consolidated annual financial statements do not fairly present the assets and liabilities,financial position and profits and losses ofthe group,more detailed or additionalinformation must be given. (5) In respect of each of the preceding five years, orsuch lesser period if the company hastraded for less than five years, particulars of the following, where the applicant is a holding company, appropriate information should be provided in consolidation form— (a) the profits or losses before and after tax; (b) the dividends paid; (c) the dividends paid in cents per share; and (d) the dividend cover for each year. (6) Particulars of the dividend policy to be adopted, the pro-forma statement of financial position prior to and immediately after the proposed issue of securities and the effect of the proposed issue of securities on the net asset value per share must be disclosed— (7) The particulars required by subsection (6) must be prepared and presented in accordance with IFRS or any other framework listed in Twenty-seventh Schedule (accounting frameworks acceptable to ZSE) acceptable to the ZSE for foreign issuers. If the applicant is a holding company, the information must be prepared in consolidated form. (8) Particulars of all investments exceeding 10 per centum of the total assets of the applicant must be disclosed. Disclosure of acquisitions made from proceeds
212. (1)The acquisitions made from proceeds of the application for listing coincides, directly or indirectly,
with the acquisition by the applicant or any of its subsidiaries of securities in or the business undertaking of any other company in consequence of which that company will become a subsidiary of, or otherwise part of, the applicant, in respect of each ofthe preceding five yearsthe same particularsrelating to the company orthe business undertaking being acquired as are required by section 171(a), with any necessary changes, and a general history of the company or the business undertaking being acquired as required by section 173 must be provided. (2) If the application for listing coincides, directly or indirectly, with the acquisition by the applicant or any of its subsidiaries of securities in or the business undertaking of any other company, then cognisance of the proposed acquisition must be taken in arriving at the particulars described in section 173. (3) If the application for listing coincides, directly or indirectly, with the acquisition by the applicant or its subsidiaries of securities in or the business undertaking of any other company in respect of each of the precedingfiveyears,theparticularsrelating tothe companyorbusinessundertakingbeingacquiredinaccordance with section 223(4) relating to the profits before and after tax and the profits before and after tax; and must be provided. Statement on working capital
213. (1) A statement that in the opinion of the directors the applicant’s working capital, including the
amount to be raised in pursuance of this issue, is adequate for the purposes of the business of the applicant and

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 of its subsidiaries for at least the next 12 months must be provided. If the directors are of the opinion that it is inadequate, there must be a statement of the extent of the inadequacy and the manner in which and the sources from which the applicant and its subsidiaries are, or must be, financed and how it is proposed to provide the additional working capital thought by the directors to be necessary. (2) The statement must be supported by a report from the applicant’s auditor, reporting accountant, merchant banker, sponsoring broker or other adviser acceptable to the ZSE. (3) The working capital statement should be prepared on the group, as enlarged by the acquisition of any assets. (4) Issuers and sponsoring brokers must comply with the requirements of Twenty-fourth Schedule (guidance on working capital) with regard to subsections (1) and (4). Statement on changes in financial or trading position of applicant’s working capital
214. A description of any material change in the financial or trading position of the applicant and its
subsidiaries which has occurred since the end of the last financial period for which either annual financial statements or interim reports have been published must be provided and where there has been no such change, a statement to that effect. Profit forecasts and Pro-forma statements
215. Profit forecasts and pro-forma statements must comply with Part IX (financial information).
Material contracts
216. (1) Subject to section 170, the dates, the nature of and the parties to every significant contract must
disclose—
(a) every significant contract entered into orally orin writing by the applicant or any ofitssubsidiaries, being a contract entered into otherwise than in the ordinary course of the business carried on or proposed to be carried on by the applicant or any of its subsidiaries and entered into within the two years prior to the date of the pre-listing statement; and (b) any other contract entered into at any time that contains an obligation or settlement that is material to the applicant or its subsidiaries as at the date of the pre-listing statement or circular. (2) If any contract referred to in subsection (1) relates to the acquisition of securities in an unlisted subsidiary or associated company, where all securities in the company have not been acquired, the reason why all the securities were not acquired must be stated, and whether anyone associated with any controlling shareholder of the applicant or associated companies or its subsidiaries is interested in the acquisition and to what extent must be stated. (3) A brief summary of existing contracts or proposed contracts, written or oral, relating to— (a) the remuneration of directors and management; (b) secretarial and technical fees payable by the applicant and any of its subsidiaries; and (c) restraint payments; must be stated:
Provided that details of the directors and managerial remuneration need only be disclosed in accordance with section 184. (4) Particulars of royalties payable or items of a similar nature in respect of the applicant and any of its subsidiaries must be disclosed. Code of corporate practice and conduct
217. (1) An applicant must include the following additional items to its listing particulars—
(a) a narrative statement of how it has applied the principles set out in the code selected by the issuer and approved by the ZSE, providing explanation that enables its shareholders and potential investors to evaluate how the principles have been applied; and (b) astatementaddressingtheextentofthecompany’scompliancewiththeCodeoncorporategovernance the issuer complies with, and the reasons for each and every instance of non-compliance.

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(2) Applicants must comply with the following specific requirements concerning corporate governance and must disclose their compliance with them in their pre-listing statement— (a) there must be a policy detailing the procedures for appointments to the board. Such appointments must be formal and transparent and a matter for the board as a whole, assisted where appropriate by a nomination committee. The nomination committee must constitute only non-executive directors, of whom the majority must be independent (as defined in paragraph (f)(iii) of this section), and should be chaired by the chairperson of the board; (b) there must be a clear division of responsibilities at board level to ensure a balance of power and authority, such that that no one individual has unfettered powers of decision-making; (c) the chief executive officer must not also hold the position of chairperson of the board; (d) the audit committee must set the principles for recommending the use of the external auditors for non-audit services; (e) a brief curriculum vitae of each director must be provided; (f) the capacity of each director must be categorised as executive, non-executive or independent, using the following as guidelines to determine which category is most applicable to each director—all issuers must appoint an audit committee and remuneration committee and, if required by the nature of their business and composition of their board, a risk committee and nomination committee. The composition of such committees, a brief description of their mandates, the number of meetings to be held annually and other relevant information must be disclosed. Experts’ consents
218. Where a pre-listing statement includes a report purporting to be made by an expert, there must be
a statement that the expert has given and has not withdrawn his written consent to the issue of the pre-listing statement, with the report in the form and context in which it is included. SUB-PART D: INSPECTION OF DOCUMENTS Documents and consents to be available for inspection
219. (1) The following documents (or copies thereof), relating to the applicant and its subsidiary companies,
if any, must be available for inspection at a place where the applicant has a registered office or any other place in Zimbabwe for a reasonable time of at least 14 calendar days— (a) the constitutive documents; (b) any trust deed or agreement affecting the governance of the applicant or the interests of the shareholders; (c) copies of any special or notarial contract bearing on the trust deed or constitutive documents within the last five years; (d) all significant contracts ,including patent rights, and franchise agreements; (e) in the case of a significant contract not reduced to writing, a memorandum giving full particulars of it; (f) where the applicant is a mineral company, the latest competent person’s report; (g) the latest sworn appraisals or valuations relative to movable and immovable property and items of a similar nature, if applicable; (h) copies or summaries of— (i) service agreements with the applicant’s directors, managers and secretaries (the copies or summaries need not specify individual directors’remuneration but must state the aggregate remuneration of the directors); and (ii) underwriting agreements, vendors’ agreements and promoters’ agreements entered into during the last five years; (i) all reports, letters and annual financial statements, valuations and statements by an expert any parts of which have been extracted or referred to in the pre-listing statement; and

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (j) the annual financial statements since the incorporation of the applicant or for the preceding five years, whichever is the lesser, together with all notes, certificates, or information required by the Companies Act [Chapter 24:03]. Disclosure requirements relating to vendors
220. (1) An applicant must disclose the names and addresses of the vendors of any assets––
(a) purchased or acquired by the applicant or any subsidiary company during the three years preceding the publication of the pre-listing statement; or (b) proposed to be purchased, or acquired, on capital account and the amount paid or payable in cash or securities to the vendor and, where there is more than one separate vendor, the amount so paid or payable to each vendor and the amount, if any, payable for goodwill or items of a similar nature must be disclosed. (2) The applicant must disclose the cost of assets to the vendors and dates of purchase by them within the preceding three years. Where the vendor is a company, the names and addresses of the beneficial shareholders of that company must be disclosed. Where this information is unobtainable, the reasons must be stated. Transactions between the applicant and a vendor, where the vendor is a related party, will be regulated in terms of the requirements of this section and Part XI (transactions with related parties). (3)There must be a statement as to whether or not the vendors have guaranteed the book debts or other assets and whether or not normal warranties have been given. (4)There must be a statement asto whether the vendors’agreements preclude the vendorsfrom carrying on business in competition with the applicant or any of its subsidiaries, or impose any other restriction on the vendor. Details of any cash or other payment regarding restraint of trade and the nature of such restraint of trade must also be disclosed. (5) There must be a statement of how any liability for accrued taxation, or any apportionment thereof to the date of acquisition, will be settled in terms of the vendors’ agreements. (6) Where securities are purchased in a subsidiary company, there must be a reconciliation between the amounts paid for the securities and the value of the net assets of that company. Where securities are purchased other than in subsidiary companies, there must be a statement as to how the value of the securities was determined. (7) Where any promoter or director had any beneficial interest, direct or indirect, in a transaction with a vendor, or where any promoter or director was a member of a partnership, syndicate or other association of persons which had such an interest, the names of any such promoter or director, and the nature and extent of his or her interest must be disclosed. Where the vendors or any of them are a partnership, the members of the partnership must not be treated as separate vendors. (8) There must be disclosure of the amount of any cash or securities paid or benefit given within three preceding years or proposed to be paid or given to any promoter, not being a director, and the consideration for such payment or benefit received or receivable. (9) There must be a statement as to whether the assets acquired have been transferred into the name of the applicant or any of its subsidiary companies and whether or not the assets have been ceded or pledged.
PART IX
Sub-Part a: Financial Information
Report of historical financial information
221. The directors of a new applicant are responsible for the report of historical financial information, and
this fact must be stated in the report.
When report of historical financial information is required
222. A report of historical financial information is required—
(a) from a new applicant for listing and an applicant issuing a prospectus or pre-listing statement, including an issuer making application in terms of a reverse take-over; (b) in respect of any substantial acquisition or disposal that has been made by a new applicant in the current or preceding financial year;

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(c) in respect of any substantial acquisition or disposal that is to be made by a new applicant and is known as at the date of issue of the prospectus or pre-listing statement; (d) in respect of an existing issuer that is issuing a prospectus or pre-listing statement; (e) in respect of a Category 1 or Category 2 transaction referred to in Part X (transactions); and (f) in respect of any substantial acquisition or disposal, that has been made by an applicant which has transacted a Category 1 or Category 2 transaction referred to in Part X in the current or preceding financial year. Financial information to be presented
223. (1) The report of historical financial information must include the following historical financial
information, prepared in accordance with International Financial Reporting Standards and guidelines issued by the Zimbabwe Accounting Practices Board— (a) statements of profit or loss and other comprehensive income; and (b) statements of financial position; and (c) statements of changes in equity; and (d) statements of cash flows; and (e) accounting policies; and (f) notes to the statements referred to in paragraphs (a) to (d); and (g) segmental information; and (h) the information set out in section 224. (2) The historical financial information required undersubsection (1) must be presented in consolidated form in respect of a period of at least three years up to and including the financial year immediately preceding the issue of the prospectus or pre-listing statement or circular–– (a) where the historical financial information is not available for the preceding three years, the ZSE must be consulted for a ruling regarding disclosure and approval of the transaction; (b) if the historical financial information required under subsection (1) was not historically prepared in terms of IFRS, only the latest two years must be converted to IFRS and that for the third year may be prepared in terms of the original accounting framework. In this case users of the information must be warned of the potential lack of comparability of the information and must be advised to consult the IFRS conversion notes in order to obtain a full understanding of any potential differences. The same historical financial information should also be produced for the holding company where that will provide significant additional information to that presented in consolidated form. (3) A report of historical financial information required in terms of this section must be prepared in accordance with the accounting policies of the new applicant. (4) Where the new applicant has made a substantial acquisition or disposal or has entered into any other substantial transaction or agreement to make a substantial acquisition or disposal or other substantial transaction subsequent to the last audited annual financial statements which has not been reported upon in any circular or other document, the applicant must disclose all the material terms and conditions of the transaction or agreement, including any conditions precedent. (5) In addition to the historical financial information required referred to above, if at the date of the prospectus or pre-listing statement or circular more than nine months have elapsed since the end of the last financial year, reviewed interim financial information must be prepared in accordance with IFRS on Interim Financial Reporting and presented for the first six months after the end of that financial year. (6) With respect to subsections (1) to (3), if more than 12 months have passed, or with respect to subsections (4) and (5), if more than 15 months have passed,since the period for which audited annual financial statements were prepared and issued, then
audited annual financial statements must be prepared for the latest financial year end.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (7) Where other historical financial information has been made available to the issuer’s holders of securities subsequent to the issuer’s latest financial year-end it must also be presented. Additional information on historical financial information
224. The following additional information must be provided when presenting the historical financial
information required by section 223(1) for the latest financial year and, where section 223(7) is applicable, for the interim period— (a) any major change in the nature of property, plant and equipment and any change in policy regarding their use; (b) details of any material loan receivable, including— (i) its inception date; (ii) the person or persons to whom it was made; (iii) interest payable and repayment terms; (iv) if interest payments are in arrears, the last date on which interest was paid and the extent of the arrears; (v) its tenure; (vi) the nature and value of any security held in respect of it; (vii) if it is unsecured, the reasons thereof; (viii) the nature and effect of any changes as contemplated by subparagraphs (ii) to (vii) during the period; and (ix) how it arose, particularly whether it arose from the sale of assets by the issuer or any of its subsidiaries; (c) details as required in paragraph (b) of loans made or security furnished by the issuer or by any of its subsidiaries for the benefit of any director or manager, or any associate of any director or manager; (d) details of any material borrowings, including debentures and similar securities or instruments, and— (i) the names of the lenders; (ii) the nature and value of security provided, if any, in respect of them; (iii) interest and repayment terms; (iv) if the borrowings are repayable within 12 months, how the repayments must be financed; and (v) how the borrowings arose, stating whether or not they arose from the purchase of assets; (e) the aggregate amounts and particulars of any shares and convertible securities issued, setting out the circumstances and purposes of the issues; (f) details of any schemes involving the staff of the issuer or its subsidiaries; (g) in respect of each subsidiary, and any entity which was a subsidiary during the period covered by the report of historical financial information but which has ceased to be one, the following details of any joint arrangement, partnership, associate or other long-term investment, if material to the financial position, changes in equity, results or cash flows of the issuer— (i) the amount of all classes of issued share capital, the percentage held by the issuer, its subsidiaries or nominees, the voting percentage held, if different from the ownership percentage, and any changes therein during the current and last financial period; (ii) any rights held by any person enabling such person to vary the voting rights held in any subsidiary; and (iii) the amount of the issuer’s interest, distinguishing between shares and indebtedness, and any changes therein during the period;

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(h) the issuer’s share of net profits or losses which during the period have accrued to or been incurred by joint ventures, partnerships and associates, disclosed separately for each such entity; (i) particulars of directors’ emoluments paid or incurred by the company in compliance with section 184 (directors and management); (j) the net asset value and tangible net asset value per share expressed in cents. Mineral companies as defined in Part XIII (mineral companies) may treat mineral rights and any other mining assets as tangible assets; (k) earnings, diluted earnings, headline earnings and dividends per share in respect of each class of shares, expressed in cents; (l) any material change in the nature of the business of the issuer and its subsidiaries; (m) any material fact or circumstance that has occurred between the end of the latest financial year of the issuer and the date of the prospectus or pre-listing statement or circular, in so far as it has not already been dealt with in the interim financial information included in the report of historical financial information or, where there has been no such material fact or circumstance, a statement to that effect. Commentary on historical financial information
225. The report of historical financial information must—
(a) include a commentary on the historical financial information; (b) incorporate a general review of the business and operations of the issuer during the period and the results thereof; and (c) deal with every fact or circumstance material to an appreciation of the state of affairs, financial position, changes in equity, results of operations and cash flows of the issuer. Periods
226. Where the financial year-end of the issuer changed at any time during the reporting period, the
historical financial information for the full period must be provided. Annualised historical financial information must not be included in the report of historical financial information. Adjustments of financial information
227. (1) A statement of adjustments must be provided, giving details of the amounts and reasons for the
adjustments, in respect of any adjustments made to previously reported historical financial information used in preparing the report of historical financial information. This is to be provided in the form of reconciliation between the previously reported historical financial information and the adjusted historical financial information presented in the report of historical financial information. If no adjustments are made that fact must be stated. (2) Adjustments referred to in subsection (1) may only be made to give effect to retrospective— (a) application of changes in accounting policies; and (b) correction of material errors. SUB-PART B: PRO FORMA FINANCIAL INFORMATION General
228. (1) If, in any document requiring submission to the ZSE, the issuer publishes pro forma financial
information, including financial statements, that information must comply with sections 229 to 238, and a report in terms of section 240(c) must be included in the relevant document, but such report is not required for announcements. (2) The provision of accurate pro forma financial information is the responsibility of the directors of the issuer who must include a statement accepting that responsibility in any publication containing pro forma financial information. Nature of pro forma information
229. (1) The purpose of pro forma financial information is to provide investors with information about
the impact of the corporate action which is the subject of the prospectus or pre-listing statement or circular by

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 illustrating how that corporate action might have affected the reported financial information had the corporate action been undertaken at the commencement of the period being reported on or in the case of a pro forma statement of financial position, at the date reported on. (2) The pro forma financial information presented is not to be misleading, it is there to assist investors in analysing future prospects of the issuer and is to include all appropriate adjustments permitted by section 236 (adjustments to financial statements) of which the issuer is aware, and which are considered necessary to give effect to the corporate action as if the corporate action had been undertaken at the commencement of the period being reported on or, in the case of a pro forma statement of financial position, at the date reported on. Presentation of pro forma financial information
230. (1) Pro forma financial information must state—
(a) the purpose for which it has been prepared; (b) that it is prepared for illustrative purposes only; and (c) that because of its nature it may not necessarily present the issuer’s actual financial position, changes in equity, results of operations or cash flows. (2) Pro forma financial information must be presented in columnar form showing separately the unadjusted financial information and the pro forma adjustments, and must identify the basis upon which it is prepared; and the source of each item of information and adjustment. (3) Pro forma figures must be given no greater prominence in the document than unadjusted financial figures. Accounting policies to be adopted in preparing and presenting pro forma financial information
231. (1) Pro forma financial information must be presented in a manner consistent with both the format
and accounting policies adopted by the issuer in its report of historical financial information. (2) In quantifying pro forma financial information adjustments, the issuer must apply accounting policies on the same basis as the issuer would normally adopt in preparing its annual financial statements. (3)The requirementtoapplythe issuer’s accounting policiesin preparingproformafinancialinformation applies to adjustments made in respect of a material acquisition. (4) Pro forma financial information must be prepared in accordance with the policies adopted in presenting the unadjusted financial information of the issuer at the relevant date or for the relevant period, even where new accounting standards will apply subsequently. Selection of periods
232. Pro forma financial information may be published only in respect of—
(a) the most recently financial reporting period; (b) in the case of a pro forma statement of financial position, as at the date on which such periods end or ended; (c) a profit forecast, provided that the forecast has been published and reported on in terms of Part X (transactions) or Part XII (mineral companies), for the statement of profit or loss and other comprehensive income purposes, and for the periods specified in paragraphs (a) and (b) for the purposes of a statement of financial position. Subsequent events
233. No adjustments may be made to pro forma financial information in respect of events occurring after
the end of the reporting period except—
(a) as provided for in the IFRS on events after the reporting period; (b) in respect of the particular transaction for which the pro forma financial information is being presented; (c) in respect of any previously published financial effects that have been reported on in terms of
section 240 (circumstances when auditors’ report is required); or

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(d) in respect of any corporate action of the issuer or the target which occurred after the preparation of theirstatements of financial position, where it would be misleading not to make an adjustment, and in such instance, in addition to providing full details of the adjustment, details must be provided as to why the issuer believes it would be misleading not to make an adjustment. Accounting periods
234. Where a pro forma statement of profit or loss and other comprehensive income or statement of cash
flows is presented for two or more entities or business undertakings, such as may be the case in a material acquisition, the unadjusted information about the issuer and the adjustments in respect of the other entity or entities must cover periods of the same length. Unadjusted information
235. (1) The unadjusted information must be derived from the most recent—
(a) published audited annual financial statements, published interim reports or provisional reports; (b) previously published report of historical financial information; (c) previously published pro forma financial information reported on in accordance with section 241 (3)(b). (2) Any previously published profit forecast must be updated and a new profit forecast published taking account of the effects of the transaction concerned. Adjustments to financial statements
236. (1) Any adjustments that are made to the information referred to in section 227 in relation to any pro
forma financial statement must be—
(a) clearly shown and explained;
(b) directly attributable to the transaction concerned and not relating to future events or decisions; (c) factually supportable; and (d) in respect of a pro forma financial statement of profit or loss and other comprehensive income or statement of cash flows, clearly identified as between those adjustments that are expected to have a continuing effect on the issuer and those that are not. (2) In order to comply fully with subsection (1), issuers must include notes to the pro forma financial information providing the explanations required in terms of that section as well as— (a) any assumptions on which the adjustments are based; (b) the range of possible outcomes where there is significant uncertainty; (c) the sources of the amounts concerned; and (d) where relevant, howadjustments have been aggregated or allocated to financialstatement captions. Continuing effects
237. (1) In respect of pro forma income or cash flow statements, issuers must identify clearly those
adjustments that are expected to have a continuing effect on the issuer and those that are not. An issuer is not permitted either— (a) to omit adjustments that are directly attributable to a transaction and factually supportable on the grounds that they do not have a continuing effect; or (b) to make adjustments to eliminate items solely on the grounds that they are considered not to have a continuing effect. (2) Issuers must interpret section 227 in line with the requirements of IFRS and guidelines issued by PAAB. Earnings and headline earnings per share
238. Where information on pro forma earnings and headline earnings per share is given for a transaction
it must be provided in compliance with IFRS:

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 Provided that where the transaction includes the issue of securities, the calculation is to be based on the weighted average number of issued shares adjusted as if that issue had taken place at the beginning of the period. Profit forecasts and estimates
239. (1) The requirements of subsections (2) to (10) apply to forecasts or estimates of profits or losses,
cash flows or net asset values collectively defined as profits or losses. A profit estimate is for a financial period that has expired but for which the results have not yet been published. (2) Any statement or information relating to the future prospects of an issuer, or an undertaking that is to become a material part of an issuer’s group, must be clear and unambiguous. The issuer must determine in advance with its sponsoring broker whether such a statement of information will constitute a profit forecast or an estimate. Any profit forecast or estimate must be compiled with using accounting policiesthat are consistent with those applied by the applicant. (3) A specific profit forecast which–– (a) states a figure for the likely level of profits or losses for the current financial period or financial periods subsequent to that period, or contains data from which a calculation of such a figure for profits or losses may be made. (b) is usually made when an applicant includes a number, percentage, range, value or any other term that has a recognised value. This list is not exhaustive and issuers must consult with their sponsoring brokers to ascertain whether a statement constitutes a specific forecast. (4) A general profit forecast–– (a) indicates a minimum or maximum figure for the likely level of profits or losses for the current financial period and financial periods subsequent to that period, or contains data from which such calculation may be made, even if no particular figure is mentioned and the word profit is not used; (b) is usually made when an applicant uses the following words or terms: improvement, “increase”, “growth”, “decline”, “decrease”, “similar” or “in line with”. The use of these words or terms must not result in the statement becoming a specific profit forecast; (c) this list is not exhaustive and applicants must consult with their sponsoring brokers to ascertain whether a statement is a general forecast. (5) A profit estimate bears the same meaning as a general or specific forecast, with the exception that it relates to a financial period ended but for which no financial information has yet been published. (6) When an applicant clearly states in an announcement that it has certain future targets or objectives that it would like to achieve, such shall not be interpreted as a profit forecast or estimate as referred to above, provided that the targets or objectives do not specifically relate to the current or next reporting period. (7) A specific or general profit forecast or estimate of an applicant, or an undertaking that is or will become a material part of the issuer’s group, which is included in any communication with shareholders is the sole responsibility of the directors and must— (a) include the key assumptions that have been used in arriving at the forecast or estimate; (b) make reference to the relevant previously published information, for instance any line item in the statement of profit or loss or other
comprehensive income, statement of financial position or the statement of cash flows , to which it relates; and (c) in the case of a specific profit forecast or estimate, must be reported on by the sponsoring brokers in accordance with section 24 (profit forecast). (8) A dividend forecast must be treated as a profit forecast where the applicant has a known policy of relating dividendsto earnings, or has an insufficient level of retained earnings, or the forecast otherwise implies a forecast of profit. In the event of uncertainty, the ZSE must be consulted. (9) A profit forecast or estimate of an applicant, or an undertaking that is to become a significant part of an issuer’s group, which is included in any communication with shareholders must be reported on by the issuer’s auditors or accountants and by the issuer’s sponsoring broker as referred to in section 23(financial reporting procedures). The applicant must compile its report in terms of International Standard on Assurance Engagements (ISAE) 3400 and IFRS.

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(10) The period of the forecast or estimate should normally be to the end of an issuer’s financial period. If it is not, then the period of the forecast or estimate must be in respect of a period for which the results will be published, or the issuer must make a new forecast for such a period. The forecast or estimate must be disclosed on a per share basis and must include profit after tax, disclosing separately any items expected to be of such size, nature or incidence that their disclosure is relevant to explain the expected performance, as well as tax charges, earnings and headline earnings, and cash flows or net asset values if applicable. (11) A profit forecast included in a prospectus, a pre-listing statement or circular containing proposals to be put to shareholders in a general meeting concerning a refinancing or reconstruction of the issuer or its group, or in any other communication with shareholders, must include a statement of the principal assumptions for each factor that would have a material effect on the achievement of the forecast. These assumptions must— (a) be clearly segregated between assumptions about factors that the directors can influence and assumptions about factors that are entirely outside the influence of the directors; (b) be readily understandable by investors; (c) be specific about the particular aspect of the estimate or forecast to which they refer and about the uncertainty attaching to that aspect; and (d) not relate to the general accuracy of the estimates such as sales estimates, expense estimates, underlying the forecasts. (12) If a profit estimate is included in any of the documents referred to in subsection 9, the estimate may only be subject to assumptions in exceptional circumstances, and such exceptional circumstances must be explained. SUB-PART C: REQUIREMENTS RELATING TO AUDIT Circumstances when the auditors’ report is required
240. The Auditor’s report is required when—
(a) a report of historical financial information is required in terms of section 223 (1)(a) to (g); (b) a report of historical financial information is prepared and presented on a voluntary basis, (except when it relates to previously published information of the applicant; (c) pro forma financial effects or pro forma financial statements are prepared, except when that pro forma information only appears in an announcement; (d) profit forecasts or estimates are prepared except where these are prepared in terms of section 239(2) and the ZSE has not exercised its powers as set out in section 239(6); (e) it is required by subsection (1). The auditor
241. (1) The auditor must be a registered public accountant in terms of the Public Accountants and Auditors
Act [Chapter 27:12] and must have sufficient knowledge and experience in the application mentioned in this Part of these rules. The auditor must be independent of the issuer and, if relevant, the company which is the subject of the transaction. If the auditors have resigned, been removed or have not been re-appointed during the last three financial years and have deposited a statement with the issuer of circumstances which they believe should be brought to the attention of members and creditors of the issuer, details of such matters must be disclosed if material. (2) The auditor must carry out his or her duties in accordance with the relevant standards issued by the International Auditing and Assurance Standards Board (IAASB) and relevant guidance issued by the Public Accountants and Auditors Board (PAAB). (3) The auditor must provide opinions on the following reports— (a) a report of historical financial information by way of— (i) an audit opinion on financial information relating to the financial yearimmediately preceding the issue of the prospectus, pre-listing statement or circular; (ii) either an audit opinion or a review opinion on financial information relating to the financial years priorto the financial yearimmediately preceding the issue ofthe prospectus or circular; (iii) a review opinion on interim financial information, where such information requires a review opinion;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (b) the pro forma financial information, in regard to whether— (i) the pro forma financial information has been properly compiled in terms of these rules; (ii) the basis of its preparation is consistent with the accounting policies of the issuer; and (iii) the adjustments are appropriate for the purposes of the pro forma financial information as disclosed pursuant to section 236(1); (c) a profit forecast, in regard to whether— (i) the assumptions, barring unforeseen circumstances, provide a reasonable basis for the preparation of the forecast; (ii) the forecast has been properly compiled on the basis stated; (iii) the forecast has been properly presented and all material assumptions are adequately disclosed; and (iv) the profit forecast is presented on a basis consistent with the accounting policies of the company or group in question; (d) a profit estimate, in regard to whether— (i) the estimate has been properly compiled on the basis stated; (ii) the estimate has been properly presented and all material matters are adequately disclosed; and (iii) the estimate is presented on a basis consistent with the accounting policies of the company or group in question. (4) Where the historical financial information has not previously been subject to an audit or where the auditor is not the auditor of the company, the auditor must audit, at a minimum, the historical financial information relating to the financial year preceding the issue ofthe prospectus or pre listing statement or circular, and review the historical financial information of prior periods. (5) Where, in accordance with the requirements of subsection (3), an audit of the historical financial information is to be performed and the auditor is also the auditor of the company, he or she must review the audit working papers relating to the relevant historical financial statements. Contents of the auditors’ report
242. A reporting auditor’s report, as set out in section 241, must comply with the applicable international
standards issued by the International Auditing and Assurance Standards Board (IAASB).
Date of the auditor’s reports
243. The auditor’s report must be dated on the same day that the directors authorise the issue of the pre￾listing statement or circular or the date that the pre-listing statement or circular is lodged with the Registrar of
Companies, whichever is the earlier.
Review of prospectus or pre-listing statement or circular
244. The auditor should review the pre-listing statement or circular so as to ensure that its contents do not
contradict the information contained in the auditors’ report. The auditor must inform the ZSE, in writing, of any such contradictions. Consent letters
245. (1) The auditor must submit a letter to the directors giving his or her consent to the inclusion of—
(a) the auditor’s report(s) in the pre-listing statement or circular; and (b) references to, or extracts from, the auditor’s report(s) in the pre-listing statement or circular. (2) The date of the consent letter should be –– (a) the day that the directors authorise the issue of the pre-listing statement or circular; or (b) where applicable, the date that the pre-listing statement or circular is lodged with the Registrar of Companies whichever is the earlier.

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(3) A statement must be included in the prospectus or pre-listing statement or circular that the auditor has given and has not withdrawn his or her written consent to the issue of the prospectus or pre-listing statement or circular, as the case may be, which contains the auditor’s report in the form and context in which it appears. Supplementary information
246. In addition to the requirements of IFRS, guidance issued by the Zimbabwe Accounting Practices Board,
and the Companies Act [Chapter 24:03], the following supplementary information must, where applicable and material, be included— (a) in respect of the period under review and the immediately preceding comparable period, a headline earnings per share and a diluted headline earnings per share figure must be disclosed, in addition to the required IFRS earnings per share figures, together with an itemised reconciliation between headline earnings and the earnings used in the calculation of earnings per share; (b) in the case of mineral companies as defined in Part XII(mineral companies),summary information must be provided in the interim report disclosing any material changes to the information disclosed in compliance with sections 314 and 318 for the prior year or financial period ended, or an appropriate negative statement where there have been no material changes; and (c) disclosure where there is a material change to the initial estimates of a contingent consideration payable or receivable in terms of an acquisition or disposal, as used in the pro forma financial effects calculations. Change of financial year
247. If a change in the financial year is proposed, the ZSE must be notified in writing and consulted as
to the period or periods to be covered by the interim report.
Basis of presentation
248. Interim, preliminary, provisional and abridged reports must be presented on a consolidated basis and
prepared in accordance with sections 223 (financial information to be presented).
Financial Reporting Monitoring Panel
249. (1) In this section—
“Financial Reporting Monitoring Panel (FRMP)” means a panel appointed by the ZSE and the Zimbabwe Accounting Practices Board to investigate and consider complaints and advise the ZSE in relation to compliance by issuers with IFRS, the ZSE’s required accounting practices in terms of these rules, and the accounting practices required by the Companies Act [Chapter 24:03]. (2) If, after receiving advice from the FRMP, the ZSE is satisfied that an issuer has not complied with any of the requirements of this Part, the ZSE may, in its sole discretion— (a) censure the issuer in accordance with Part II (authority of ZSE); (b) instruct the issuer to publish or re-issue any information the ZSE may direct; and (c) report any professionals involved with such non-compliance to PAAB or any other professional or relevant body. Use of financial advisers by issuers
250. (1) In order to ensure that the requirements of the applicable reporting standards are met and appropriately
applied, each applicant or issuer is encouraged to make use of a financial adviser who is accredited as such by the PAAB. (2) The role of the financial adviser includes the following— (a) when required to do so by the applicant or issuer, provide technical financial assistance and advice in support of the accounting applied by the issuer. The financial adviser is required to document the IFRS opinion issued; (b) to act as a technical link between the ZSE, the FRMP and issuer in instances where the ZSE and the FRMP require interaction in relation to the IFRS reporting by the applicant; and

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (c) it is suggested, but not required, that the applicant consult with and require the financial adviser to review the financial statements and other information of the applicant before their issue.
PART X
Transactions Relating to Acquisitions and Disposals Application of Part
251. (1) In this Part, reverse take-over” means a transaction, or series of transactions, in which an issuer
acquires a business entity or an unlisted company or assets which would result in a fundamental change in the listed company’s business; or a change in the listed company’s board or controlling shareholder involving an alteration to its articles of association; and such a transaction is considered to be a new listing. (2) This Part deals with transactions, principally acquisitions and disposals, by an issuer. It describes how they are categorised, what the requirements are for announcements and circulars and whether shareholder approval is required. It then considers additional requirements for take-overs and mergers. (3) Twenty-ninth Schedule (detailed requirements for take over and mergers) sets out, in a table, certain requirements for the contents of Category 1 and Category 2 circulars. References to transactions
252. (1)References in this Part to a transaction by an issuer—
(a) include a transaction by any subsidiary of the listed company; (b) exclude a transaction in the ordinary course of the company’s trading activities; (c) exclude an issue ofsecurities or a transaction to raise finance which, in either case, does not involve the acquisition or disposal of any asset of the listed company or of its subsidiaries; and (d) include the written grant or acquisition of an option to acquire or dispose of assets as if the option had been exercised. (2) An issuer which is in any doubt as to the application of the listings requirements contained in this
Part must consult the ZSE at an early stage.
Categorisation and explanation of terms
253. (1) Any issuer considering a transaction must, at an early stage, consider the categorisation of the
transaction.
(2) A transaction is categorised by assessing its size relative to that of the issuer proposing to make it and the listed holding company of such issuer, if applicable. (3) The comparison of size is made by the use of the percentage ratios set out below. The different categories of transactions are— (a) Category 3—a transaction where any aggregate percentage ratio is 5 per centum or more but each transaction is less than 20 per centum; (b) Category 2—a transaction where any aggregate percentage ratio is 20 per centum or more but each transaction is less than 30 per centum; (c) Category 1—a transaction where any aggregate percentage ratio is 30 per centum or more; (4) Figures used for categorisation purposes must be the aggregate market value of all those securities before the announcement of the transaction or, in the case of consideration in the form of a new class of securities for which an application to listing will be made, the issue price of such securities or, if no price can be determined for that new class of securities, the expected aggregate market value of the securities in that class. (5) In cases of doubt as to whether a transaction is to be categorised under this section, the issuer must consult the ZSE at an early stage and must comply with any instructions the ZSE may give regarding the categorisation of the transaction.

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Percentage ratios
254. (1) The percentage ratios are the figures, expressed as a percentage, resulting from each of the
following calculations––
(a) consideration to market capitalisation—the consideration divided by the aggregate market value of all the equity securities of the listed company; (b) dilution—the number of securities issued by an issuer as consideration for an acquisition compared to those in issue prior to the transaction; (2) Where a transaction is to be settled partly in cash and partly in shares, its category size is to be calculated by first assessing the cash-to-market capitalisation percentage and then adding this percentage to the dilution percentage. (3) The calculation showing all categorisation workings must be supplied to the ZSE when the announcement and circular are submitted for approval. (4) Where either of the above calculations produces an anomalous result, or where the calculations are inappropriate to the sphere of activity of the issuer, the ZSE may disregard the calculation and may substitute other relevant indicators of size. (5) The ZSE may require the issuer to provide a fair and reasonable opinion on transaction values, taking into account other ratios, or may use any other appropriate indicators of size to determine the category size of a transaction, and such indicators may include net asset valuations, discounted cash flow, statement of financial position and turnover. (6) If either of the percentage ratios changes to the extent that the categorisation of the transaction is altered between the time the transaction is first discussed with the ZSE and the announcement, the issuer must inform the ZSE and must comply with any instructions the ZSE may give regarding the categorisation of the transaction. Consideration
255. When calculating the consideration for a transaction—
(a) the consideration is the amount paid to the sellers but the ZSE may require the inclusion of further amounts, for instance where the purchaser agrees to discharge any liabilities, whether actual or contingent, of the sellers as part of the terms of the transaction; (b) where all or part of the consideration is in the form of securities to be listed, the consideration attributable to those securities means the aggregate market value of those securities based on the ruling price of such securities at the time the terms of the transaction are agreed; (c) if deferred consideration is or may be payable in the future, the consideration is the maximum possible total consideration payable under the agreement. If that total consideration is not subject to any maximum the transaction will normally be treated as a Category 1, notwithstanding the category into which it otherwise falls; (d) if the transaction involves a new class of securities for which an application for listing will be made, the consideration is the product of their issue price or, if the issuer does not provide evidence of their listed price, some other appropriate value determined to the satisfaction of the ZSE. Indemnities and similar arrangements
256. (1) Any agreement or arrangement with a party, not being a member of the issuer’s group—
(a) under which an issuer agrees to discharge any liabilities for costs, expenses, commissions or losses incurred by that party, whether or not on a contingent basis; and (b) which would be exceptional; and (c) under which the maximum liability is unlimited; must be treated as a Category 1 transaction. (2) For the purpose of this Part, indemnities such as those customarily given in connection with sale and purchase agreements and indemnities given to advisers against liabilities to third parties arising out of providing advisory services are not exceptional.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 Aggregation of transactions
257. (1) Transactions completed during—
(a) the 12 months prior to the date of the latest transaction; or (b) the period since the date on which the mostrecent published audited statement of financial position was prepared; or (c) the period since the publication of the latest pre-listing statement or circular; whichever is the shorter, must be aggregated with the latest transaction for the purpose of determining the categorisation to apply to the latest transaction. (2) In cases of doubt as to whether transactions must be aggregated under this section, the issuer must consult the ZSE at an early stage and must comply with any instructions the ZSE may give regarding the aggregation of the transactions. (3) Where acquisitions are entered into during a period of 12 months which cumulatively exceed 100 per centum in either of the percentage ratios, the provisions relating to a reverse take-over provided for in the Twenty-ninth Schedule (detailed requirements for take over and mergers) must be applied. (4) Without prejudice to the generality of subsections (1) and (2), transactions will normally only be aggregated in accordance with those sections if they— (a) are entered into by the issuer with the same party or with parties connected with one another; or (b) involve the acquisition or disposal of securities or an interest in one particular company; or (c) together lead to substantial involvement in a business activity which did not previously form a
part of the company’s principal activities.
(5) If under subsection (1) the aggregation results in a Category 1 requirement for shareholder approval, then that approval is required only for the latest transaction. Category 3 requirements
258. (1) In the case of a Category 3 transaction the issuer must, without delay and in any event within
four calendar days after the terms of the transaction are agreed and before it is implemented, publish a press announcement setting out— (a) particulars of the transaction, including the names or details of— (i) any company or business which is the subject of the transaction; and (ii) the ultimate beneficiary of the transaction; and (iii) if the transaction is an acquisition, the sellers; and (iv) if the transaction is a disposal, the purchasers; and (v) the effective date of the transaction; and (vi) any conditions precedent; and (vii) any other significant terms of the transaction; and (b) a description of the business carried on by the listed company; and (c) the consideration for the transaction, and how it has been or is to be paid or given, including the terms of any arrangements for deferred payment; and (d) the value of the net assets that are the subject of the transaction, and any significant pro forma effect the transaction will have on the net assets and net tangible assets per share of the company; and (e) the profits attributable to the net assets that are the subject of the transaction, and any significant pro forma effect the transaction will have on the historical earnings and headline earnings per share of the company; and (f) the reason for the transaction; and

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(g) in the case of a disposal of assets––
(i) the application of the sale proceeds; and
(ii) if securities formed part of the consideration received, a statement whether such securities must be sold or retained. (2) The pro forma financial information required by subsection (1) paragraphs (d) and (e) must comply with the requirements of Part IX (financial information). (3) In subsection (1), “significant” means a change of three per centum or more for the purpose of making an informed assessment of the assets and liabilities, financial position, profits and losses, cash flow and prospects of the listed company and the rights attaching to any securities forming part of the consideration. (4) If, pursuant to a Category 3 transaction, securities have been acquired in a company which, as a result, becomes a subsidiary company, the listed company must give the ZSE a written undertaking that the constitutive documents of such a subsidiary company will be amended to conform to Tenth Schedule (requirements for articles of association). Such confirmation must also be included in the announcement in terms of subsection (1). (5) If at any time after the publication of a press announcement in terms of subsection (1), the issuer becomes aware that— (a) there has been a significant change affecting any matter contained in that announcement; or (b) a significant new matter has arisen which would have been required to be mentioned in that announcement if it had arisen when that announcement was being prepared; the listed company must without delay, and in any event within hours after becoming aware of the change or new matter, advise the ZSE and publish a supplementary press announcement:
(i) giving details of the change or new matter; and (ii) containing a statement that, save as disclosed, there has been no significant change affecting any matter contained in the earlier announcement and no othersignificant new matter has arisen which would have been required to be mentioned in that earlier announcement if it had arisen when that announcement was being prepared. (6) Where an issuer is required to publish a supplementary press announcement in terms of subsection (5), the ZSE may require the issuer to ensure that— (a) any person who assumed responsibility for any statement or assessment contained in the earlier press announcement, or who was responsible for any assessment or forecast on the basis of which any such statement or assessment was made, assumes responsibility for any revision of that statement, assessment or forecast in the supplementary press announcement; (b) any other person on whose statement, assessment or forecast anything in the supplementary press announcement is based assumes responsibility for that statement, assessment or forecast. (7) If as a result of any significant change or new matter referred to in subsection (5) the percentage ratios of the transaction are affected and the transaction requires re-categorisation into a higher category, the issuer must re-categorise the transaction accordingly. Category 2 requirements
259. (1) Within 4 calendar days after the terms of a Category 2 transaction have been agreed, and before
they have been implemented, the listed company must— (a) publish a press announcement complying with the requirements of section 258(1); and (b) in the press announcement state that a circular to shareholders will be issued in compliance with subsection (2); and within 28 calendar days thereafter, despatch the circular to shareholders. (2) The circular referred to in subsection (1) must comply with the general requirements relating to circulars set out in this Part and must include— (a) the information required in the Twenty-ninth Schedule (detailed requirements for Take over and Mergers); and

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (b) details of any service contracts of proposed directors of the issuer; and (c) where the transaction involves a payment or consideration to be given for goodwill, a statement regarding the company’s accounting policy towards goodwill as well as the reasons for such goodwill payment or consideration; and (d) a statement giving the directors’ opinions on the transaction; and (e) the information required by the Twenty-ninth Schedule in relation to Category 2 circulars; and (f) in the case of an acquisition of an interest in an undertaking which will result in— (i) a consolidation of the net assets of that undertaking; or (ii) a disposal of an interest in an undertaking which will result in the net assets of the undertaking no longer being consolidated; an accountants’ report as set out in Part IX (financial information) is required; (g) in the case of a transaction other than one referred to in subparagraph (f), a summary of any relevant financial information, or a statement that none exists, together with confirmation that the directors consider that the value to the company justifies the price paid or received by it is required; and (h) details required of all Category 3 announcements made since the publication of the company’s last— (i) annual financial statements or interim report; or (ii) pre-listing statement; or (iii) Category 2 or Category1 circular; whichever is the most recent. Category 1 requirements
260. (1) In the case of a Category 1 transaction the issuer must comply with the Category 2 requirements
as set out in section 259(1) and (2), and in addition must comply with the requirements set out in subsections (2), (3) and (4). (2) The agreement effecting a Category 1 transaction must be conditional upon the shareholders of the issuer approving the transaction in general meeting. (3)The circularto shareholdersmust include a statement giving the directors’opinions on the transaction, a recommendation as to how shareholders should vote at the general meeting to approve the transaction and, where any directors are voting shareholders, an indication as to how those directors intend to vote at the general meeting. (4) If the transaction results in an issue of securities which, together with any other securities of the same class issued during the previous three months would increase the securities issued by more than 30 per centum, then the issuer must include in the circular the information required to be disclosed for a pre-listing statement. Reverse take-over requirements
261. (1) In the case of a transaction involving a reverse take-over, issuer must comply with the requirements
of subsection (2) to (5).
(2) The issuer, as enlarged by the acquisition, must be suitable for listing as if it was a new applicant and satisfies the conditions for listing as set out in Part V (conditions for listing). (3) The applicant must make an announcement of a reverse take-over, which must contain adequate warning as to the uncertainty of whether the ZSE will allow the listing to continue following the acquisition. Suspension of the listed company will be considered by the ZSE pending more details. (4) The company must prepare a Category 1 circular and listing particulars as though the company were a new applicant, which circular must clearly advise shareholders whether or not the ZSE will continue to grant a listing to the issuer if shareholders approve the acquisition. (5) If the Category 1 circular and listing particulars are not provided to shareholders within 30 calendar days of the announcement, the ZSE will suspend the listing of the company’s securities.

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Exceptions to reverse take-over requirements
262. In the case of a reverse take-over, if all the following conditions are satisfied, the acquisition will be
treated as a Category 1 transaction—
(a) the subject of the acquisition is of a similar size to that of the acquiring company; and (b) the subject of the acquisition is in a similar line of business to that of the acquiring company; and (c) the enlarged group is suitable for listing; and (d) there will be no change in the board or controlling shareholder of the acquiring company. Contents of Category 1 and Category 2 circulars
263. (1) In addition to the requirements of sections 259 to 260, a Category 1 or Category 2 circular must
include the information required by the table set out below, but where the circular is accompanied by or forms
part of a pre-listing statement which itself contains the information required, such information need not be
repeated.
(2) The working capital statement and, where relevant, information on group prospects and any profit forecast must be on the basis of the enlarged group in the case of an acquisition and on the basis that the disposal has taken place in the case of a disposal. (3) Where the listed company is issuing securities for which listing is sought, the information regarding major interests in securities and directors’ interests in securities must be given in relation to the share capital both as existing and as enlarged by the securities for which listing is sought. (4) Where a circular is required by this Part and pre-listing statements are required by Part VII, a single document may be issued which comprises pre-listing statements, provided that— (a) it contains all the information required by this Part and Part VII (prelisting statements); and (b) the document has been submitted to and approved by the ZSE prior to its publication. (5) If securities are being issued as consideration for an acquisition and a Category 2 circular is required, then listing will not be granted for those securities until the circular has been distributed to shareholders. (6) In the case of a Category 1 transaction, listing will not be granted until shareholders’ approval has been obtained and, where necessary, any special resolution has been registered. Takeovers and mergers
264. (1) Where an announcement or a cautionary announcement concerning a possible take-over or merger
transaction is submitted to the ZSE for approval, a copy of the announcement must simultaneously be sent to the applicable regulatory authorities. (2) A copy of all draft documentation that is sent to the applicable regulatory authorities for approval must be submitted to the ZSE together with a letter confirming that the relevant documentation has been submitted to the applicable regulatory authorities. (3) The issuer must submit a written notification to the ZSE immediately upon approval being granted by the applicable regulatory authorities in respect of any documentation that is to be circulated to shareholders. The ZSE will consider granting approvals conditionally where regulatory approvals have not yet been granted but listings requirements have been met. (4) A copy of the actual approved documentation must be sent to the ZSE together with the notification referred to in subsection (3). (5) The detailed requirements relating to takeovers and mergers for are provided for in Twenty-ninth
Schedule.
PART XI
Transactions with Related Parties
Application of Part
265. (1) This Part provides certain safeguards against those security holders, directors or other persons
related to an issuer taking advantage of their position. Transactions with parties related to an issuer are known

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 as related party transactions. Reference should also be made to the listings requirements regarding transactions set out in Part X (transactions). (2) Where any transaction is proposed between an issuer, or any of its subsidiaries, and a related party, a circular to security holders and the approval of the security holders of the listed company in general meeting will normally be required. (3) Any circular sent to security holders in connection with a related party transaction must provide sufficient information to enable any recipient of the circular to evaluate the effects of the transaction on the listed company. Definitions
266. (1) For the purposes of this Part, the following definitions apply—
“director” in relation to the definition of “related party” includes a person who is, or within the 12 months preceding the date of the transaction was, not a director but in accordance with whose directions or instructions the directors or any of the directors are or were accustomed to act; “material security holder” means any person who is, or within the 18 months preceding the date of the transaction was, entitled, directly or indirectly by agreement or otherwise, to exercise or control 10 per centum or more of the votes able to be cast on all or substantially all matters at general meetings of the listed company, or any other company which is its subsidiary or holding company or which is a fellow subsidiary of its holding company; “related party” means— (a) a material security holder; (b) any person who is, or within the 12 months preceding the date of the transaction was, a director of the listed company or any of its subsidiaries or its holding company or any subsidiary of its holding company; (c) any advisor to the listed company which has, or within the 12 months preceding the date of the transaction had, a beneficial interest, whether direct or indirect, in the listed company or any of its associates; (d) any person, who is, or within the 12 months preceding the date of the transaction was, a member of key management of the company, by whatever position he may be or may have been designated, and whether or not he is or was a director; (e) an associate of the persons described in paragraphs (a) to (d); “related party transaction” means a transaction, or any variation or novation of an existing agreement, between an issuer, or any of its subsidiaries, and a related party. Consultation with the ZSE
267. (1) If an issuer or any of its subsidiaries proposes to enter into a related party transaction which will
result in any vested or other interest or right being created for any related party, the listed company must consult the ZSE at an early stage. If the ZSE considers the related party to have a significant interest in, or influence over, the related party transaction, it may, at its sole discretion, impose the requirements set out in section 268. The relevant draft contract must be supplied to the ZSE, if requested. (2) The ZSE may, in its sole discretion, require the listed company to provide it with a declaration that, to the best of the knowledge and belief of the directors, any nominee shareholders do not include any person who may be acting in concert with any other person in relation to the related party transaction. Requirements for a related party transaction
268. (1) If the ZSE so decides, the listed company must in respect of a related party transaction—
(a) make a press announcement containing—
(i) the information specified in Part XII (circulars, prelisting statements, prospectus and press announcements); (ii) the name of the related party concerned; and

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(iii) details of the nature and extent of the interest of the related party in the transaction; (b) furnish the ZSE with a copy of the agreement; (c) send a circular to its security holders containing the information required in section 272 (contents of circular); (d) obtain the approval, by resolution, of its security holders either prior to the transaction being entered into or, if it is expressed to be conditional on such approval, prior to completion of the transaction; (e) include in the special or ordinary resolution to approve or give effect to the transaction a condition that the validity of the resolution will be subject to a requisite majority of the votes of shareholders other than the related party and its associates being cast in favour of the resolution; and (f) submit to the ZSE a statement by an independent expert acceptable to the ZSE confirming that the terms of the proposed transaction with the related party are fair and reasonable to the security holders of the company. (2) Where a meeting of the issuer has been called to approve a transaction and, after the date of the notice of meeting but prior to the meeting itself, the transaction becomes a related party transaction, the ZSE may require that the listed company either— (a) take immediate steps to amend the relevant resolution by including the condition referred to in subsection (1)(e) and give notice of the amendment to shareholders by way of a circular containing also any information required by section 272 which was not contained in the original circular accompanying the notice of the meeting; or (b) withdraw the notice of the meeting and convene a fresh meeting complying with subsection (1). (3) If the ZSE decides not to impose the requirements set out in subsection (1) in respect of a related party transaction, the issuer must prior to completing the transaction— (a) provide the ZSE with written confirmation from an independent professional expert acceptable to the ZSE that the terms of the proposed transaction with the related party are fair and reasonable as far as the shareholders of the issuer are concerned; and (b) undertake in writing to the ZSE to include details of the transaction in the issuer’s next published annual financialstatements, circular or pre-listing statement interim financialstatements, including the identity of the related party, the value of the consideration for the transaction and all other relevant circumstances. Transactions not regarded as related party transactions
269. A transaction will not be regarded as a related party transaction if any of the following situations
apply—
(a) the issuer does not have any equity securities listed; (b) the transaction is an issue of new securities either— (i) for cash by the issuer or any of its subsidiaries pursuant to an opportunity which, so far as is practicable, is made available to all holders of the listed company’ssecurities or to all holders of a relevant class of its securities on the same terms other than those excluded in terms of the Companies Act [Chapter 24:03]; or (ii) made pursuant to the exercise of conversion or subscription rights attaching to a listed class of securities or previously approved by the issuer’s shareholders in general meeting, and has been approved by the issuer’s shareholders in general meeting; (c) the transaction— (i) involves the receipt of securities by a director of the issuer, its holding company or any of its subsidiaries; or (ii) is a grant of an option to a director of the issuer, its holding company or any of its subsidiaries to acquire, whether or not for a consideration, new or existing securities of the issuer; in accordance with the terms of an employees’ share scheme which does not have the effect of conferring benefits only on directors of the issuer, its holding company or any of its subsidiaries;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (d) the transaction is a grant of credit, including the lending of money or the guaranteeing of a loan, to or from the related party— (i) upon normal commercial terms in the ordinary course of business; or (ii) in an amount and on terms no more favourable than those offered to employees of the group generally; and (iii) has no conversion rights; (e) the transaction is the grant of an indemnity to a director of the issuer or any of its subsidiaries to the extent permitted by the Companies Act [Chapter 24:03], or the maintenance of a contract of insurance to the extent contemplated by section 184 of that Act, whether for a director of the listed company or for a director or any of its subsidiaries; (f) the transaction is an underwriting by the related party of all or part of an issue of securities by the listed company or any of its subsidiaries, and the consideration to be paid by the listed company or any of its subsidiaries in respect of such underwriting is no more than the usual commercial underwriting consideration and is the same as that to be paid to the other underwriters, if any; (g) the transaction is one where both of the percentage ratios referred to in section 253 (4) are equal to or less than five per centum; or (h) the transaction is one of a revenue nature in the ordinary course of the listed company’s business. Transactions relating to small related party transactions
270. In relation to small related party transactions, the listed company must—
(a) inform the ZSE in writing of the details of the proposed transaction; (b) provide the ZSE with written confirmation from an independent professional expert acceptable to the ZSE that the terms of the proposed transaction with the related party are fair and reasonable as far as the shareholders of the issuer are concerned; (c) publish details of the proposed transaction in accordance with Part XII (circulars, prelisting statements, prospectus and press announcements), including a statement that paragraph (b) of this
section has been complied with, that the transaction has been declared to be fair and reasonable,
and that the fair and reasonable opinion statement will lie for inspection at the issuer’s registered office for a period of 28 days from the date of announcement; and (d) comply with the usual requirements regarding transactions with related parties as provided in
section 268 (requirement for related party transaction), if the independent professional expert
states that the transaction is not fair and reasonable.
Aggregation
271. (1) The ZSE will require all transactions to be aggregated which—
(a) are entered into by the issuer or any of its subsidiaries with the same related party or any of its associates in any twelve-month period; and (b) have neither been approved by shareholders nor described in a circular complying with the requirements of section 272. (2) If the transactions in aggregate would be classified as a Category 3 or larger transaction in terms of
section 258, the ZSE shall require the company to comply with the requirements of section 272 in respect of the
latest transaction and to disclose in the circular all relevant details of each of the transactions being aggregated. Contents of circular
272. A circular relating to a related party transaction must comply with the general requirements relating
to circulars set out in Part XII and must also include— (a) a responsibility statement in accordance with section 193; (b) in all cases, the information required by sections 210, 215, 249, 253, 255 and 256. (c) in the case of a transaction where the related party is a director of the issuer or of its holding company or any of its subsidiaries or fellow subsidiaries, or an associate of such a director, the

S.I. 134 of 2019 directors’ interests in securities and transactions and the directors service contracts should be specified; (d) full particulars of the transaction, including the name of the related party concerned, a description of the relationship between the issuer and the related party and the nature and extent of the interest of such party in the transactions; (e) in the case of an acquisition, or disposal of fixed property, or, in the case of a mineral company, an acquisition or disposal of minerals, mineral resources or mineral reserves as defined in Part XIII, an independent valuation including the value, the basis of valuation and the method of arriving at such value; (f) a statement complying with Fifth Schedule by an independent professional expert acceptable to the ZSE as to whether the transaction is fair and reasonable insofar as the shareholders of the issuer are concerned, provided that such statement shall not be required if an independent valuation has been conducted and disclosed in accordance with paragraph (e); (g) where applicable, a statement that the related party and its associates will not be taken into account in determining a quorum at the shareholders’meeting and their votes will not be taken into account in determining the results of the voting at such meeting in relation to any resolution in connection with the related party transaction; (h) if the transaction also falls within Category 1 or Category 2, the information required to be included in Category 1 or Category 2 circulars respectively in terms of Part X; (i) in the case of a transaction involving immovable freehold property or leasehold property, the applicable information required by Part XIV(property companies); and (j) details of any other transactions entered into by the issuer, or any of its subsidiaries, with the same related party or any of its associates which have not been approved by the shareholders.
PART XII
Circulars, Pre-Listing Statements or Prospectuses and Press Announcements Application
273. (1) This Part sets out—
(a) the general requirements applicable to all circulars and press announcements published by listed companies; and (b) the specific requirements relating to the method of issue of securities to be listed. (2) Where the circular or press announcement, or the transaction or matter to which it relates, has unusual features, or where it is not possible to comply with the relevant requirements of this Part, the ZSE must be consulted at an early stage. (3) When a new applicant or existing issuer issues a prospectus the presumption is made that, apart from compliance with the Act, the prospectus will also comply with and contain all necessary disclosures as if it were a pre-listing statement subject to compliance with these rules. For the purposes of this Part and its
appendix any reference to a pre-listing statement includes reference to a prospectus, and vice versa.
(4) Parts X and XI detail the information to be included in press announcements and circulars relating to transactions and related party transactions. Contents of all circulars
274. Circulars and pre-listing statements sent by an issuer to holders of its listed securities must—
(a) provide a clear and adequate explanation of their subject matter; (b) if voting or other action is required— (i) contain all information necessary to allow the holders of the securities to make a properly informed decision; and (ii) contain a heading drawing attention to the importance of the document and advising holders of securities who are in any doubt as to what action to take to consult appropriate independent advisers;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (c) state that where all the securities have been sold or transferred by the addressee, the circular and any other relevant documents should be passed to the person through whom the sale of transfer was effected, for transmission to the purchaser or transferee; (d) state in which other official languages they are also available and where the translations may be obtained; (e) include all the information published or to be published simultaneously with the circular or pre￾listing statement concerned in any press announcement issued in connection with the transaction to which the circular or pre-listing statement relates; and (f) where new securities are being issued in substitution for existing securities, explain what will happen to existing documents of title; (g) provide clear guidance in respect of any event requiring action by security holders, as follows— (i) wherever reference is made to security holders or members of the company concerned, the procedures for security holders must be detailed; (ii) the surrender of security certificates will only apply where applicable, and the surrender forms must state this; (iii) in the case of nominee company security holders, the sponsoring broker will automatically action the surrender of ownership title in accordance with the corporate action or after having received an election instruction; (iv) the salientdatesshouldinclude allthedatesinthedeclarationdata andfinalisationinformation; and (v) if new securities must be issued, security holders or members must be given the option to receive such new securities in certificated or dematerialised form. Formal approval
275. (1) All other price sensitive announcements to be made must be submitted for review by the ZSE
before publication and where necessary must be approved by the ZSE.
(2) Circulars and pre-listing statements may not be sent to shareholders until they have been approved by the ZSE. Listing by introduction
276. Applicants seeking a listing by way of an introduction are required to publish an announcement
complying with section 274 and prepare a pre-listing statement complying with section 277. Press announcements for introductions
277. The announcement referred to in this section must either contain the full pre-listing statement as set
out in section 274 or an abridged pre-listing statement containing the following information— (a) the number and description of the securities concerned; (b) the name, date of registration and registration number of the applicant; (c) the general nature of the main business or proposed main business actually carried on or to be carried on by the applicant and its subsidiaries; (d) the names and addresses of the directors of the applicant; (e) the places at and times during which copies of the pre-listing statement may be obtained and, if the press announcement is not a full pre-listing statement, a statement to that effect; and (f) the address at which the pre-listing statement is available.
278. A pre-listing statement must—
(a) in addition to the requirements of section 274(contents of all circulars), state on the front page the following — “This pre-listing statement is not an invitation to the public to subscribe for securities, but is issued in compliance with the Listings Requirements of the ZSE, for the purpose of giving information to the public with regard to the company.”;

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(b) if the pre-listing statement is required as a result of a rights issue, it must in addition state the following on the front page— “This rights issue circular incorporates listing particulars and is issued in compliance with the listing requirements of the ZSE, for the purpose of giving information to the public with regard to the company.”; and (c) contain the information described in Part VII (prelisting statements). Placings
279. Companies seeking a listing by way of placing should publish and distribute, in accordance with
section 275 (formal approval), a pre-listing statement complying with section 278(a) and (c) or a prospectus
complying with section 273(2).
Offers for sale or subscription
280. Applicants seeking a listing by way of an offer for sale or subscription must publish an announcement
complying with section 281 (1) and a prospectus complying with section 281(2).
Press announcements for offers for sale or subscription
281. (1) A press announcement must either incorporate the contents of the prospectus as set out in subsection
(2) or contain at least the following information— (a) the number and description of the securities concerned; (b) the name and date of registration of the applicant; (c) the general nature of the main business or proposed main business actually carried on or to be carried on by the applicant and its subsidiaries; (d) the names and addresses of the directors of the applicant; (e) the places at and times during which copies of the prospectus may be obtained; (f) where all the securities which are the subject of an offer are intended to be offered only to the members of a company or to holders of a specified class of securities, with or without the right to renounce in favour of other persons— (i) the issue price of such securities; (ii) the ratio in which such securities will be offered to the members orspecified class ofsecurity holders entitled to accept the offer; and (iii) the last day on which members or specified class of security holders must register as such in order to be entitled to receive the offer; and (g) the last day for subscribing. (2) The circular for an offer for sale or subscription should take the form of a prospectus and comply with the Companies Act [Chapter24:03] and Part VI as well as any regulations made under the Securities and Exchange Act [Chapter 24:25]. Renounceable offers
282. (1) The applicant in a renounceable offer is required to publish two press announcements and a
pre-listing statement as follows—
(a) the first press announcement must contain at least the information required by section 181 (1); (b) the second press announcement must give— (i) the date from which the pre-listing statement will be available and from whom it can be obtained; and (ii) the date the applicant’s issued securities and the letters of allotment will be listed; (c) the pre-listing statement must contain the information set out in section 173(requirements of prelisting statements regarding acquisition and merger issues);

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (2) The listed company renouncing the securities to its shareholders must publish four press announcements, according to the timetable set out in section 104 (timetable for publication of documents), containing the information referred to in this section. (3) The press announcements issued by the applicant and the issuer must be published together, and— (a) the applicant’s pre-listing statement must contain all the information contained in press announcements issued by the listed company; and (b) the responsibility statementfromthe applicant’s directorsmust cover all the information contained in press announcements issued by the listed company. SUB-PART A: RIGHTS OFFERS AND CLAW-BACK OFFERS Publication requirements
283. Listed companies seeking a listing for securities issued by way of a rights offer or claw-back offer
must publish press announcements as provided in section 284(1) and, if a pre-listing statement is not required, issue a circular as provided in section 171(issues not requiring pre-listing statements). The letters of allocation must comply with section 286. Press announcements for rights offers
284. (1) Four press announcements in accordance with the timetable set out in section 104(timetable for
publication of documents) must be issued though the announcements specified in subsections (2) and (3) and may be combined. (2)The first press announcementmust give the last date forshareholdersto registerin orderto participate in the offer. (3) The second press announcement must give the terms of the offer and a statement that application has been made to the ZSE for a listing of the renounceable letters and subsequent securities. (4) The third press announcement must— (a) advise that the ZSE has granted a listing for the renounceable letters of allocation and subsequent securities; (b) state the salient dates relating to the offer; (c) state that copies ofthe circular or pre-listing statement will be available forinspection at the offices of the company’ssponsoring brokers, as well asthe company’stransfer office and registered office and such other locations as may be appropriate, by the Friday prior to the Monday on which the listing of the letters of allocation commences; and (5) The fourth press announcement must give the number of securities taken up by the shareholders of the applicant and the number of securities taken up by the underwriter (and the sub-underwriter where applicable). Circular
285. (1) If a pre-listing statement is to be published in accordance with Part VII it must contain the information
set out in section 173(requirements for pre-listing statements regarding acquisition and merger issues). (2) If a pre-listing statement is not required by section 169, a circular must be published containing the information required by the following sections of Part VIII—
Section Nature of statement
176 Name and address
177 Share capital of the company
184 Directors and management
184 (1)(f) Directors remuneration
191 Directors’ interests in securities
192 Directors’ interests in transactions
193 Responsibility statement
202 Market value of securities
112 Rights offers
176 Description of business

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Section Nature of statement
171 Prospects
209 Litigation
211 Report of historical financial information 239 Profit forecasts 215 Pro-forma statements 73 Corporate Governance
Part XVII Documents and consents to be available for inspection and any other
relevant information prescribed by the ZSE from time to time.
Notes

1. The pro forma statements should include a pro forma statement of financial position, a pro forma
   statement of profit and loss and other comprehensive income, the effect on net asset value per share, net tangible asset per value per share, earnings per share, headline earnings per share and, if applicable, diluted earnings and headline earnings per share.
2. In certain instances Part VIII (listing particulars) may prohibit the issuer from showing income
   attributable to the rights issue or issue of shares for cash. If it would be misleading to show no income attributable to the rights issue or issue of shares for cash, the ZSE may grant the issuer dispensation from showing the income statement effects. In this instance the issuer must provide a detailed note setting out the proposed application of the funds. (3) In addition, the circular must contain details of all Category 3 transactions not previously notified to shareholders by way of a circular. Letters of allocation
3. (1) The following information must be included on the letters of allocation—
   (a) the salient details of the corporate action, printed on the front page of the letters of allocation; and (b) the instructions in respect of acceptance and payment, sale and renunciation and registration. (2) Where excess securities are made available, the application form must be printed in a different colour from the letters of allocation. SUB-PART B: CAPITALISATION ISSUES AND SCRIP DIVIDENDS Publication requirements
4. (1) Companies seeking a listing for securities issued by way of a capitalisation of reserves or an
   application of share premium or capital redemption reserve fund are required to comply with the relevant timetable in section 123. (2) A circular must be sent to shareholders— (a) containing the information set out in sections 127 and 274; and (b) complying with the requirements of section 125, in the case of scrip dividends and section 120 for capitalisation issues. (3) For a scrip dividend or a cash underpin by a third party for a capitalisation issue, the company seeking a listing is required to publish three press announcements— (a) the first press announcement must give the last date on which shareholders must be registered in order to participate in the scrip dividend or capitalisation issue, where applicable, and the exact cash value of the dividend or the exact ratio of the capitalisation issue; (b) the second press announcement must give the ratio of new securities offered to existing securities or the exact cash value of the underpin; and (c) the third press announcement must give details of the results of the scrip dividend and the fact that the dividend has now been declared or the level of acceptances of the cash underpin.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (4) For other capitalisation issues, the company seeking a listing is required to publish a press announcement giving details of— (a) the proposed capitalisation issue; (b) the last date on which shareholders must be registered in order to participate in the capitalisation issue; (c) the date on which the scrip arising out of the capitalisation issue will be issued; (d) the number of shares that will be issued in relation to the number of shares already in issue; and (e) the date on which the new number of shares generated by the capitalisation issue will be listed. SUB-PART C: ISSUES FOR CASH Publication requirements for issue of cash
288. (1) Companies seeking a listing for securities issued for cash must publish a circular containing
the following—
(a) the notice of general meeting;
(b) full disclosure of the detailed effects of the proposed issue, including the effect on the net asset value per share; (c) the disclosure required by sections 129 under Part VI(methods of bringing particulars to listing); (d) if section 129(2) is applicable, a statement by the directors of the company as well as an independent professional expert complying with Fifth Schedule and acceptable to the ZSE, certifying that in their opinion, after due and careful enquiry, the share issue is fair and reasonable and in the interests of the shareholders; (e) an explanation for any discount to prevailing and recent market prices; (f) a statement that to the knowledge of the directors and controlling shareholders, if any, the company is not the subject of an announced or expected take-over bid; (g) the names and addresses of the subscribers to the issue for cash; and (h) the sections of Part VIII(listing particulars) described in section 285 (2) above, other than section 203, unless a pre-listing statement is required in terms of Part VII (pre-listing statement), in which case the pre-listing statement should contain the information set out in that Part. (2) After an issuer has issued equity securities in terms of an approved specific issue for cash, the issuer must publish an announcement containing full details of the issue, including— (a) the number of securities issued; (b) the average discount to the weighted average traded price of the equity securities over the 30 days prior to the date that the price of the placing was determined or agreed by the directors of the company; (c) if the issue was to a related party, the name of the independent expert who prepared the required fair and reasonable statement, and where copies of such statement can be obtained; and (d) the effects of the issue on net asset value per share, net tangible asset value per share, earnings per share and headline earnings per share. General issue for cash
289. (1) If an issuer is seeking a general authority for issues for cash, a circular must be sent to securities
holders including the following—
(a) the notice of general meeting or annual general meeting; and (b) the disclosure referred to in Part VI (methods and procedures of bringing securities to listing). (2) After an issuer has issued equity securities in terms of an approved general issue for cash representing, on a cumulative basis within a financial year, 5 per centum or more of the number of equity securities in issue prior to that issue, the issuer must publish an announcement containing full details of the issue and—

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(a) the number of securities issued;
(b) the average discount to the weighted average traded price of the equity securities over the 30 days prior to the date that the price of the issue was determined or agreed by the directors of the company; and (c) the effect of the issue on net asset value per share, net tangible asset value per share, earnings per share and headline earnings per share. SUB-PART D: REPURCHASE OF SECURITIES Specific repurchases
290. (1) For a specific repurchase of securities, the circular must, at the minimum, contain the following
information—
(a) contents of all circulars (refer to section 274); (b) general information including— (i) directors and management (section 184); (ii) major shareholders (section 182); (iii) material change (section 143 (1) (b)); (iv) directors’ interests in securities (section 191); (v) share capital of the company (section 177); (vi) responsibility statement (section 193); and (vii) disclosure of litigation proceedings against applicant (section 209); (c) the reason for, and method by which, the company intends to repurchase its securities, including the number of securities to be repurchased and the price to be paid; (d) in the case of a repurchase from a specific shareholder or shareholders, the names of such shareholders and the current shareholding of such shareholders and the names and details of the parties excluded from voting in terms of Part VI; (e) in the case of a pro rata offer, a statement that shareholders may tender more securities than their pro rata entitlement. Shareholders who tender securities in addition to the offer must be treated on an equitable basis in accordance with the principle in Part V (Conditions for listing); (f) the effect of the proposed repurchase on earnings per share, headline earnings per share, net asset value per share and tangible net asset value per share; (g) a statement by the directors that after considering the effect of such repurchase— (i) the company and the group will be able in the ordinary course of business to pay its debts for a period of 12 months after the date of the approval of the circular; (ii) the assets of the company and the group will be in excess of the liabilities of the company and the group for a period of 12 months after the date of the approval of the circular. For this purpose, the assets and liabilities must be recognised and measured in accordance with the accounting policies used in the latest audited consolidated annual financial statements; (iii) the share capital and reserves of the company and the group will be adequate for ordinary business purposes for a period of 12 months after the date of the approval of the circular (refer to section 146(1)(c)); and (iv) the working capital of the company and the group will be adequate for ordinary business purposes for a period of 12 months after the date of the approval of the circular (refer to
section 213(1));
(h) a statement as to the source of funds to be utilised; (i) a statement complying with Fifth Schedule, from an independent professional expert acceptable to the ZSE, indicating whether or not the premium paid is fair and reasonable to shareholders of the company if such premium is greater than five per centum of the weighted average of the market value for the securities for the five business days immediately preceding the date on which the transaction was agreed; and

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (j) in the case of a specific repurchase by an issuer from a related party as defined in section 266(1), a statement complying with Fifth Schedule , from an independent professional expert acceptable to the ZSE, indicating whether or not the repurchase is fair and reasonable to shareholders of the company. (2) In the case of a pro rata offer, announcements must be made as stated in section144(1). (3) In the case of a specific repurchase from specific shareholders, the announcement must contain the following— (a) the terms of the repurchase; (b) the date of the general meeting at which the specific authority will be sought; (c) the person or entity from whom the specific repurchase is to be made; (d) the date on which the repurchase is to be made and the date on which the securities will be cancelled and the listing terminated, if applicable; (e) the effects of the repurchase on earnings per share, headline earnings per share, net asset value per share and tangible net asset value per share; and (f) a statement that a circular containing details of the above will be dispatched to shareholders. General repurchases
291. (1) If a company is seeking a general authority to purchase its own securities, the company must send
to the holders of its securities a notice of general meetings, and a circular containing the following information— (a) contents of all circulars (refer to section 274); (b) general information including— (i) directors and management (see section 184); (ii) major shareholders (see section 182); (iii) material change (see section 143 (1)); (iv) directors’ interests in securities (see section 191); (v) share capital of the company (see section 177); (vi) responsibility statement (see section 193); and (vii) litigation that the issuer may be involved in (see section 209); (c) a statement of the board of directors’ intention regarding the utilisation of the authority sought; (d) a statement by the directors that after considering the effect of such maximum repurchase— (i) the company and the group will be able in the ordinary course of business to pay its debts for a period of 12 months after the date of the notice of the general meetings; (ii) the assets of the company and the group will be in excess of the liabilities of the company and the group for a period of 12 months after the date of the notice of the general meetings. For this purpose, the assets and liabilities must be recognised and measured in accordance with the accounting policies used in the latest audited annual group financial statements; (iii) the share capital and reserves of the company and the group will be adequate for ordinary business purposes for a period of 12 months after the date of the notice of the general meetings (see section 146(1)(c)); and (iv) the working capital of the company and the group will be adequate for ordinary business purposes for a period of 12 months after the date of the notice of the general meetings (refer to section 213(1); and (e) a statement in the resolution that such authority is limited to sections 141 (1) (b), where derivatives are used. (2) When a company has cumulatively repurchased five per centum of the initial number (the number of that class of shares in issue at the time that general authority from shareholders is granted) of the relevant class of securities, and for each three per centum in aggregate of the initial number of that class acquired thereafter, an announcement must be made as soon as possible and on the second business day following the day on which the relevant threshold is reached or exceeded, and must contain the following information—

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(a) the date on which the securities were repurchased; (b) the highest and lowest prices paid for securities so repurchased; (c) the number and value of securities repurchased; (d) the extent of the authority outstanding by number and percentage calculated using the number of shares in issue before any repurchases were effected; (e) a statement as to the source of funds utilised; (f) a statement by the directors that after considering the effect of such repurchase— (i) the company and the group will be able in the ordinary course of business to pay its debts for a period of 12 months after the date of the announcement; (ii) the assets of the company and the group will be in excess of the liabilities of the company and the group for a period of 12 months after the date of the announcement. For this purpose, the assets and liabilities must be recognised and measured in accordance with the accounting policies used in the latest auditedgroupannualfinancial statements; (iii) share capital and reserves of the company and the group will be adequate for ordinary business purposes for a period of 12 months after the date of the announcement (refer to
section 146 (1)(c)); and
(iv) working capital of the company and the group will be adequate for ordinary business purposes for a period of 12 months after the date of the announcement (refer to section 213(1)); (g) a statement confirming that section 141(1)(b) has been complied with; (h) the effects of the repurchase on earnings per share, headline earnings per share, net asset value per share and tangible net asset value per share; and (i) the date on which the securities will be cancelled and the listing terminated, if applicable. SUB-PART E: PAYMENTS TO SECURITIES HOLDERS Specific payments
292. (1) In this section—
“specific payment” means a payment by a company to its securities holders which is not made pro rata to all the securities holders. (2) Where an applicant seeks authority to make a specific payment, the circular to its securities holders must contain the following information— (a) contents of all circulars (refer to section 274); (b) general information including— (i) directors and management (see section 184); (ii) major shareholders (see section 182); (iii) material change (see section 143(1)); (iv) directors’ interests in securities (see section 191); (v) share capital of the company (see section 177); (vi) responsibility statement (see section 193); and (vii) litigation that the issuer may be involved in (see section 209); (c) the reason for the payment and method by which the company intends to make it; (d) the effect on earnings per share, headline earnings per share, net asset value per share and tangible net asset value per share of the proposed payment;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (e) a statement by the directors that after considering the effect of such payment— (i) the company and the group will be able in the ordinary course of business to pay its debts for a period of 12 months after the date of the approval of the circular; (ii) the assets of the company and the group will be in excess of the liabilities of the company and the group for a period of 12 months after the date of the approval of the circular. For this purpose, the assets and liabilities must be recognised and measured in accordance with the accounting policies used in the latest audited annual group financial statements; (iii) the share capital and reserves of the company and the group will be adequate for ordinary business purposes for a period of 12 months after the date of the approval of the circular (refer to section 146(1)(c)); and (iv) the working capital of the company and the group will be adequate for ordinary business purposes for a period of 12 months after the date of the approval of the circular (refer to
section 213 (1));
(f) the detailed terms of the payment; and
(g) a statement giving the directors’ opinions on the payment, a recommendation as to how securities holders should vote and an indication as to how the directors intend to vote their shares. (3) Where an applicant seeks authority to make a specific payment as defined in this section, an announcement must be published containing the following information— (a) the terms of the payment; (b) the date of the general meeting at which the specific authority will be sought; (c) the date on which the payment is to be made; (d) the effect on earnings per share, headline earnings per share, net asset value per share and tangible net asset value per share; and (e) that a circular containing details of the information specified in paragraphs (a) to (d) will be sent to securities holders. General payments
293. (1) In this section—
“general payment” means a payment which a company makes pro rata to all its securities holders. (2) If a company is seeking authority to make a general payment to its securities holders, a circular must be sent to the securities holders, together with a notice of general meeting, including the following— (a) the contents of all circulars (refer to section 274); (b) general information including— (i) directors and management details (see section 184); (ii) major shareholders (see section 182); (iii) material change (see section 143(1)); (iv) directors’ interests in securities (see section 191); (v) share capital of the company (see section 177); (vi) responsibility statement (see section 193); and (vii) litigation that the issuer may be involved in (see section 209); (c) a statement of the directors’ intention regarding the utilisation of the authority sought; (d) a statement by the directors that after considering the effect of the payment— (i) the company and the group will be able in the ordinary course of business to pay its debts for a period of 12 months after the date of the notice of the general meetings; (ii) the assets of the company and the group will be in excess of the liabilities of the company and the group for a period of 12 months after the date of the notice of the general meetings.

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For this purpose, the assets and liabilities must be recognised and measured in accordance with the accounting policies used in the latest audited annual group financial statements; (iii) the share capital and reserves of the company and the group will be adequate for ordinary business purposes for a period of 12 months after the date of the notice of the general meetings (refer to section 146(1)(c)); and (iv) the working capital of the company and the group will be adequate for ordinary business purposes for a period of 12 months after the date of the notice of the general meetings (refer to section 213(1)). (3) Where a company seeks authority to make a general payment as defined in subsection (1), an announcement must be published containing the following information— (a) the terms of the payment; (b) the date of the general meeting at which the specific authority was obtained; (c) the date on which the payment is to be made; and (d) the effect on earnings per share, headline earnings per share, net asset value per share and tangible net asset value per share. SUB-PART F: VOLUNTARY LIQUIDATION Circular on voluntary liquidation
294. (1) Where an issuer proposes to enter into voluntary liquidation, a circular approved by the ZSE must
be despatched to its shareholders with the notice of general meeting, incorporating the following— (a) a summary of the mechanics of the liquidation distribution and the payment procedure to be adopted; (b) any applicable exchange control rulings or procedural guidelines; (c) the taxation implications of the distribution; (d) a pro-forma statement of financial position (refer to Part IX) if the issuer intends making more than one distribution to security holders or if it has entered into any Category 1 to Category 3 transactions; (e) the effect of the voluntary liquidation on net asset value, net tangible asset value, earnings and headline earnings per share to the shareholder; (f) the information required by section 274 (general requirements for all circulars); and (g) the information required by section 219 (documents and consents to be available for inspection). (2) If shareholders approve the voluntary liquidation, a written application by the company must be submitted for the termination of the listing on a stated date. Sub-part G: Redemption of Securities Circular of redemption of security
295. (1) Where an issuer proposes to redeem securities a circular must be despatched to its shareholders,
with the notice of general meeting, giving the following information— (a) a summary of the salient features, dates and rationale of the redemption, and steps to be followed by the shareholders; (b) details as to the company’s compliance with applicable laws and the terms and conditions of any approval granted by a regulatory body such as the Reserve Bank of Zimbabwe, the Ministry responsible for Indigenisation, the Zimbabwe Investment Authority, the Zimbabwe Revenue Authority, together with a statement to the following effect— “Redemption proceeds received by non-residents will be subject to a ruling by the Exchange Control Authorities in Zimbabwe.”; (c) the taxation implications of the redemption;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (d) the effect of the redemption on net asset value, net tangible asset value, earnings and headline earnings per share to the shareholder; and (e) the information required by section 274. (2) The requirements of subsection (1) may be waived by the ZSE where the redemption does not contain any options and must be redeemed on specific terms and at specific times. SUB-PART H: CHANGE OF NAME OF AN ISSUER Circulars of change of name of an issuer
296. (1) An issuer proposing to change its name must send two circulars approved by the ZSE to its
shareholders with the following details—
(a) thefirstcircularshouldconvenethenecessarymeetingandgivedetailsoftheresolutionsshareholders will be asked to pass in order to affect the proposed change of name; and (b) the second circular must give the results of the resolutions and, if the resolutions have been passed, state— (i) whether the change of name has been registered with the registrar of companies (if it has, a certified copy of the proof of change of name should be submitted to the ZSE); (ii) the date from which the ZSE will give effect to the change of name; (iii) the abbreviated name of the company; and (iv) instructions as to the procedure to be adopted regarding existing share certificates or, where the shares have been dematerialised, any applicable proof of ownership. (2) Where share certificates are being recalled, the second circular must be sent to shareholders at least two weeks prior to the date on which the company’s securities are listed under its new name. SUB-PART I: SUB-DIVISION OR CONSOLIDATION OF SECURITIES Circulars on sub-division or consolidation
297. (1) An issuer proposing to subdivide or consolidate its securities must issue two circulars to
shareholders—
(a) the first circular must convene the necessary meeting and include the following information— (i) details of the resolutions shareholders will be asked to pass in order to effect the subdivision or consolidation; (ii) the reasons and rationale for the subdivision or consolidation; (iii) a statement that application has been made to the ZSE for the amendment of the company’s listing; and (iv) the procedure to be adopted regarding existing share certificates if the special resolution is passed by shareholders and the ZSE has agreed to the amendment of the listing; (b) the second circular must be sent to shareholders immediately after the general meeting and include the following— (i) the outcome of the meeting; (ii) whether the application for the listing of the subdivided or consolidated securities has been granted by the ZSE; (iii) the date from which the listing is to be amended; and (iv) the procedure to be adopted in respect of the recall of the existing share certificates. (2) A press announcement embodying the details contained in subsection (1) (b) must be published. (3) The ZSE will only consider applications in respect of share splits from companies whose securities have a high market price or are poorly traded so as to improve the marketability of the securities. (4) No cash company will be permitted to split its securities if, as a result of such split, the net asset value or indicated market price after the split is reduced to below one cent per share.

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SUB-PART J: REDEMPTION OF LISTED REDEEMABLE SECURITIES Requirements
298. The following must be complied with in regard to the redemption of listed securities by an issuer —
(a) the redemption must be effected in compliance with any applicable provisions of these rules and any other regulatory requirements such as a redemption of listed redeemable preference shares in terms of the Companies Act [Chapter 24:03], and must be authorised and effected in accordance with the listed company’s constitutive documents; (b) a circular must be sent to holders of the redeemable securities containing the information set out in section 295(1), unless waived in terms of section 295(2); and (c) written application for removal from the List of the securities to be redeemed, as from a specified time and date, must be submitted to, and approved by, the ZSE. SUB-PART K: CHANGE OF TRANSFER SECRETARIES Requirements
299. The following procedures are required when there is a change in the transfer secretaries of an issuer—
(a) a notice advising members of the issuer’s change of transfersecretaries, together with the relevant details, must be sent to all registered members; (b) a press announcement detailing the changes must be published at least two weeks before the due date of change; and (c) the issuer must advise the ZSE in writing of the change and must include details in respect of the issuer’s new transfer secretaries. SUB-PART L: CAUTIONARY ANNOUNCEMENTS Matters to be disclosed in cautionary announcements
300. Cautionary announcements must—
(a) disclose all available details regarding the information that is the subject of the cautionary announcement; and (b) contain a warning to shareholders that they are advised to exercise caution when dealing in their securities until full details regarding such information has been announced:
Provided that, when a company is unable to provide details on the subject of the cautionary announcement, the announcement should be substantially in the form of paragraph 20.1 of the Twentieth Schedule (“First cautionary announcement”). Progress reports following cautionary announcement
301. In all instances where a cautionary announcement has been published, the company must publish a
progress report at least every 21 days until negotiations have either been finalised and shareholders informed of the outcome in the manner required in these rules or have been terminated and shareholders informed accordingly. Such announcement must contain all available details on the matter. However, where a company is unable to provide such details, the announcement should be substantially in the form of paragraph 20.2 of the Twentieth
Schedule (“Renewal of existing cautionary announcement”).
Withdrawal of cautionary announcement
302. Where a company decides to withdraw a cautionary announcement, it must make an announcement to
this effect, which announcement should be substantially in the form set out in paragraph 20.3 of the Twentieth
Schedule (“Withdrawal of cautionary announcement”).
SUB-PART M: GENERAL MATTERS RELATING TO CIRCULARS, ANNOUNCEMENTS AND DOCUMENTS Embargo placed on company announcements or circulars
303. To obviate leakage of information companies are not permitted to release for publication company
announcements (including press announcements, circulars and pre-listing statements) under a time embargo.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 Release dates should be in agreement with the ZSE. A draft announcement or price sensitive information may not be released to any third party under a time embargo before it is released in terms of section 33, and circulars may not be released to a third party under a time embargo prior to it being approved by the ZSE and sent to shareholders and the ZSE Data Portal. Name or logo of broking firm on advertisements and documents
304. (1) The names of the sponsoring broker or members of the ZSE may appear in any advertisement or
document issued by or on behalf of any company. Where the names of members appear, the following words must be added after their names: “member of the ZSE.” (2) Where the name or logo of a broking firm appears on an advertisement or document, irrespective of whether the advertisement or document is in respect of a listed or unlisted company— (a) the document or advertisement must be cleared with the ZSE; (b) the document or advertisement must conform to these rules; and (c) the document is subject to normal documentation fees, where applicable. Circulars and announcements to be sent to all securities holders
305. If an issuer dispatches a circular, pre-listing statement or listing particulars or press announcement
to the beneficial owners of any particular class of security, the issuer must dispatch a copy or summary of the document to the beneficial owners of all other classes of securities in such issuer, unless the sponsoring broker, with the concurrence of the ZSE, considers the contents of the document as irrelevant to them. Communication with holders of bearer securities
306. If there is a need to communicate with beneficial owners of listed bearer securities, the issuer must
release an announcement referring to the communication and give an address or addresses from which copies of such communication can be obtained by beneficial owners of bearer securities. Responsibility of issuer for disseminating information 307.Where copies of annualfinancialstatements, abridged annualfinancialstatements, provisionalreports, interim reports, pre-listing statements or listing particulars, circulars, proxy forms and dividend or interest notices are required to be distributed to shareholders, it is the responsibility of the issuer to ensure that such distribution is made to all beneficial holders of its securities at the cost of the issuer. Availability of pre-listing statements or circulars
308. Members of the ZSE may obtain copies of pre-listing statements or circulars by submitting a request
to the sponsoring broker for the number of copies required. It is then the duty of the sponsoring broker to pass on such applications to the company, which is responsible for posting these copies promptly to the applicants. SUB-PART N: ISSUE OF SHARES UNDER CONTROL OF DIRECTORS Issue of authorised but unissued shares under control of directors
309. (1) Where a company is contemplating an increase of capital and the authorised but unissued shares
are being placed under the direct control of the directors with no indication as to whom they will be issued, the notice to shareholders must contain the following statement— “No issue of these shares is contemplated at the present time and no issue will be made which couldeffectively transfer the control of the company without prior approval of shareholders in general meeting.” (2) The ZSE must be consulted prior to whatever transaction is contemplated before an issue of shares under the control of directors is made, and any instructions given by the ZSE must be complied with. SUB-PART O: ODD-LOT OFFERS Requirements for odd-lot offer
310. An issuer making an odd-lot offer to its securities holders must distribute a circular to securities
holders, together with a notice of general meeting, containing the following—

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(a) details of the resolutions shareholders will be asked to approve in order to effect the odd-lot offer; (b) the reasons for the odd-lot offer; (c) the election alternatives referred to in section 161(odd-lot offers); and (d) the procedure to be adopted by certificated shareholders with respect to their documents of title.
PART XIII
Mineral Companies
Definitions
311. In this Part
“competent person”—
(a) means apersonwithaminimumoffiveyears’experience relevanttothe styleofmineralisation and type of deposit under consideration and to the activity that the person is undertaking; and (b) in relation to the preparation of a competent person’s report, includes an individual, firm, company or other legal entity which has a director, partner or employee who— (i) isprofessionallyqualifiedandisamemberingoodstandingofanappropriateprofessional association, institution or body acceptable to the ZSE; and (ii) has, in the opinion of the ZSE, the necessary professional experience insofar as it relates to the contents of the report; “exploration” means all activities and operations (including, without limitation, aerial, geological, geophysical and photo geological surveys, the application of remote sensing technology, drilling, pitting and trenching, bulk sampling and trial mining) directed towards the reconnaissance, or discovery, location and delineation of, commercial mineral ore bodies, the evaluation of such ore bodies including feasibility studies, viability and amenability studies, the acquisition, maintenance and administration of the relevant mineral titles and the administration of field offices for the performance of such activities; “exploration company” means a company whose principal activity is that of exploration; “exploration results” means the disclosure of exploration results compiled by a competent person; “mineral” has the meaning given to it in the Mines and Minerals Act [Chapter 21:05] ; “mineral reserves” means that part of a mineral resource which has been analytically demonstrated to justify mining, taking account, at the time of the determination, all known mining, metallurgical, marketing, legal, environmental, social, economic and other applicable conditions; “mineral resources” means a mineral deposit in such form and quantity that mining of a mineral may be feasible and the location, grade, quality and quantity of which are estimated from specific geological evidence; “mining” means any excavation of the earth, including any portion under water or in any tailings, as well as any borehole, made for the purpose of winning a mineral or the exploration of any mineral deposit in any other manner; “mining company” means a company whose principal activity is that of mining. General
312. (1) Subject to this Part, these rules apply to mineral companies. Sections 313 to 317 apply exclusively
to exploration companies. Sections 317 to 320 apply exclusively to mining companies. To the extent that a mineral company is both an exploration company and a mining company, all these provisions apply to it. (2) If information required to be disclosed under this Part is confidential for legal or other reasons and the directors of a mineral company can show to the satisfaction of the ZSE that the mineral company’slegitimate interests might be prejudiced if the information were to be disclosed, then the ZSE may grant a dispensation from the requirement to make the information public.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (3) A compliance checklist must be submitted to the ZSE with every competent person’s report and must contain cross-references of the Requirements in this Part to the relevant parts of the report. SUB-PART A: EXPLORATION COMPANIES Criteria for listing
313. (1) The ZSE may admit to listing the securities of an applicant notwithstanding that the requirements
of section 87(c) are not satisfied, if—
(a) the provisions of section 87(a), (b), (e) and (f) are satisfied; (b) the applicant undertakes or proposes to undertake exploration; (c) the applicant demonstrates to the satisfaction of the ZSE that the applicant’s managers have satisfactory experience in exploration; and (d) the applicant demonstrates to the satisfaction of the ZSE that the applicant is entitled to explore for the relevant minerals. (2) The ZSE shall require all applicants to have issues underwritten. Contents of pre-listing statements, listings particulars, prospectuses and circulars prepared by exploration companies
314. In addition to the requirements of Parts VII and IX, pre-listing statements, listing particulars,
prospectuses and circulars prepared by exploration companies must contain the following information or documents— (a) a competent person’s report, complying with section 315(2) and (3) and, if in the opinion of the ZSE the competent person is not independent of the issuer, the pre-listing statement must clearly disclose the nature of the relationship or interest; (b) details of all management and service agreements; (c) the names of the issuers’ directors and technical advisers; (d) detailsof any direct orindirectinterest, beneficial or non-beneficial,which each director, competent person and related party has or, within two years preceding the date of the pre-listing statement, had— (i) in any asset (including a right to explore for minerals) which has been acquired or disposed of by, or leased to or by the issuer, including any interest in the consideration passing to or from the issuer; (ii) in the share capital of the issuer; and (iii) in the promotion of the issuer; (e) a statement of any legal proceedings that may have an influence on the issuer’s rights to explore for minerals, or a statement that there are no such proceedings, if that is the case; (f) a glossary of the terms used in the pre-listing statement; and (g) a detailed statement of— (i) the exploration funding requirements for at least two years following publication of the pre￾listing statement; (ii) the exploration expenditure incurred to date or budgeted for; and (iii) the projected adequacy of capital raised for exploration purposes. Competent persons’ reports
315. (1) An issuer may appoint more than one competent person and each competent person’s report must
comply with subsections (2) and (3)
(2) A competent person’s report must—
(a) state the full name, address, professional qualifications and relevant experience of the competent person and the name and address of the professional association, institute or body of which he or she is a member;

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(b) in the case of a firm, company or other legal entity, state the entity’s full name and address and the full name, professional qualifications and relevant experience of the key director, partner or employee who has prepared the report, and the name and address of the professional association, institution or body of which he or she is a member; (c) be dated less than nine months prior to the date of publication of the pre-listing statement or circular and signed by the competent person or the person or persons authorised to sign the report on behalf of the firm, company or other legal entity, and by the key director, partner or employee who has prepared the report; (d) be updated prior to publication of the pre-listing statement or circular if further data becomes available, unless the pre-listing statement or circular sets out and explains the effect of such further data; (e) if the competent person is not independent of the issuer, clearly disclose the nature of the relationship or interest; and (f) contain a paragraph stating that all requirements of this Part have been complied with, or that certain paragraphs were not applicable and provide a list of such paragraphs. (3) The competent person’s report must include a description of— (a) the nature of the issuer’s rights of exploration and the right to use the surface of the properties to which these rights relate; and (b) the agreements, concessions, consents, permissions, permits or authorisations, required and where those have been obtained, and details of their principal terms and conditions; (c) a statement detailing exploration results to date including the names of every organisation that carried out the interpretations and investigation, providing, inter alia, details concerning the following, where applicable, or an appropriate negative statement— (i) with respect to drilling techniques: the drill type used ( such as reverse circulation, rotary air blast, diamond drilling) and details (such as core diameter) and the measures taken to maximise sample recovery and ensure the representative nature of the samples; (ii) with respect to logging: a statement as to whether samples have been logged to a level of detail to support appropriate mineral resources estimation, mining and metallurgical studies and the nature of the logging , whether qualitative or quantitative in nature; (iii) with respect to drill sample recovery: whether sample recoveries have been properly recorded and results assessed, in particular whether a relationship exists between sample recovery and grade and sample bias (such as preferential loss or gain of fine or course material); (iv) with respect to other sampling techniques: the nature and type of sampling (such as cut channels, random chips) including measures taken to ensure the samples are representative and the precise location and unique numbering of each sample; (v) with respect to sub-sampling techniques and sample preparation: whether the core was cut or
sawn and whether quarter, half or all the core was taken for assay purposes; if non-core samples were taken, whether they were riffled, tube sampled, rotary split etc. and whether they were sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique must be indicated, including quality control procedures adopted for all sub-sampling stages to ensure that the samples are as representative as possible. Measures taken to ensure that the sampling is representative of the in situ material collected must be explained and a view expressed whether the sample sizes are appropriate to the grain size of the material being sampled; (vi) with respect to verification of results: the verification of selected intersections by either independent or alternative personnel and details of the use of twinned holes, deflections or duplicate samples; (vii) with respect to data location: the accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in mineral resource estimation, a discussion of the quality and adequacy of topographic control and, where appropriate, locality plans;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (viii) with respect to data density and distribution: a description of the data density for reporting of exploration results including whether the data density and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the mineral resource or mineral reserve estimation procedure and classification applied and when applied,sample compositing; (ix) with respect to audits or reviews: the results of any audits or reviews of sampling techniques and data used; (x) with respect to exploration work done by other parties: acknowledgement and detailed appraisal of exploration by such parties; (xi) with respect to geology: a description of the nature, detail, and reliability of geological information (rock types, structure, alteration, mineralisation, and relation to known mineralised zones), including all geophysical and geochemical data. Reliable geological maps and cross sections should be provided to support interpretations; (xii) with respect to data compositing (aggregation) methods: in reporting exploration results, weighted averaging techniques, maximum or minimum grade truncations (such as cutting off high grades) and cut-off grades are usually material and should be clearly explained. Where composite intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such compositing should be stated and some typical examples of such composites should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated; (xiii) with respect to the relationship between mineralisation widths and intercept lengths: if the geometry of the mineralisation with respect to the drill hole angle is known, a full report of its nature: if not known and only the down-hole lengths are reported, a clear statement to this effect such as “down-hole length, true width not known”; (xiv) with respect to balanced reporting: where comprehensive reporting of all exploration results is not practicable, representative reporting of both low and high grades and widths to avoid a misleading reporting of exploration results; (xv) with respect to other substantive exploration data: details of other exploration data, if meaningful and material, including geological observations, geophysical survey results, geochemical survey results, bulk samples – size and method of treatment, metallurgical test results, bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances; and (xvi) with respect to further work: an outline of the nature and scale of planned further work (such as additional exploration); (d) with respect to the issuer’s mineral resources and reserves, a statement of— (i) the geological features of the occurrence, the type of deposit and its dimensions; (ii) an estimate of the volumes,
tonnages and grades, as appropriate; (iii) a general description of the methods by which the details under subsection (3) were estimated; (iv) the anticipated mining tonnages, grades or volumes; (v) the planned processing tonnages, grades or volumes, and the other principal assumptions relating to any forecast revenues and operating costs; and (vi) the estimation and reporting of mineral resources detailing, where applicable, the following— A. with respect to the database integrity—the measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors between its initial collection and its use for mineral resource estimation purposes, and the data validation procedures used; B. with respect to geological interpretation—a description of the geological model used and inferences made from this model and a discussion of sufficiency of data density to assure continuity of mineralisation and provide an adequate database for the estimation procedure used;
C. with respect to estimation and modelling techniques—

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I the nature and appropriateness of the estimation techniques applied, and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters, maximum distance of extrapolation from data points; II the availability of check estimates, previous estimates or mine production records and whether the mineral resource estimate takes appropriate account of such data; III the assumptions made regarding recovery of by-products; IV in the case of block model interpolation, the block size in relation to the average sample spacing and the search employed; V assumptions behind modelling of selective mining units; VI the process of validation, the checking process used, the comparison of model data to drill-hole data, and use of reconciliation data if available; VII detailed description of the method used and the assumptions made to estimate tonnages and grades (section, polygon, inverse distance, geostatistical, or other method); VIII description of how the geological interpretation was used to control the mineral resource estimates; IX a discussion of the basis for using or not using grade cutting or capping; X if a computer method was chosen, a description of programs and parameters used; XI a detailed description of geostatistical methods used and a justification of the method chosen; XII a discussion of the geostatistical parameters, including the variogram and their compatibility with the geological interpretation. Experience gained in applying geostatistics to similar deposits should be taken into account; D. with respect to cut-off grades or parameters— the basis of the cut-off grades or quality parameters applied, including the basis, if appropriate, of equivalent metal formulae; E. with respect to mining factors or assumptions—the assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It may not always be possible to make assumptions regarding mining methods and parameters when estimating mineral resources. Where no assumptions have been made, this should be stated; F. with respect to metallurgical factors or assumptions—the basis for assumptions or predictions regarding metallurgical amenability. It may not always be possible to make assumptions regarding metallurgical treatment processes and parameters when reporting mineral resources. Where no assumptions have been made, this should be stated; G. with respect to tonnage factors (in situ bulk densities)—whether assumed or determined; if assumed, the basis for the assumptions and if determined, the method used, the frequency of the measurements, the nature, size and representativeness of the samples; H. with respect to classification—the basis for the classification of the mineral resources into varying confidence categories; whether appropriate account has been taken of all relevant factors, i.e. relative confidence in tonnage or grade computations, confidence in continuity of geology
and metal values, quality, quantity and distribution of the data and whether the result appropriately reflects the competent person’s view of the deposit; and
I. with respect to reviews or audits: the results of any audits or reviews of mineral resource
estimates;
(e) where applicable, a statement to the effect that— (i) an environmental management programme as required by law has been approved by the responsible ministry concerned and the cost of such programme; (ii) pending the approval of an environmental management programme, temporary authorisation to commence operations has been obtained; or (iii) an extension of time within which to obtain approval of an environmental management programme has been granted;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (f) in respect of the issuer’s exploration activities to date, a statement— (i) of the nature of any relevant geophysical and geological evidence; (ii) where applicable, of the results of drilling and sampling, stating the number of holes drilled, sample pits or trenches and their location, with a description of their current status, and a statement whether or not those results support the existence of the relevant minerals; and (iii) where applicable, of the names or the organisations that carried out the investigation and analysis; (g) in respect of the issuer’s future exploration activities, a description of the general methods to be employed for exploration; and (h) in respect of each major property, maps and plans demonstrating its location, the nature and extent of workings thereon and all principal geological features. Press announcements and circulars
316. (1) In addition to any other requirements under these rules, press announcements by exploration
companies must—
(a) insofar as they relate to any mineral deposit, include any information available to the issuer concerning the characteristics of the deposit; (b) insofar as they relate to mineral resources or reserves, include a description of the nature of mineralisation; and (c) insofar as they relate or refer to a competent person’s report— (i) be approved in writing in advance of publication by the relevant competent person; and (ii) if in the opinion of the ZSE, the competent person is not independent of the issuer, clearly disclose the nature of the relationship or interest between them. (2) In addition to any other requirements under these rules, circulars in respect of Category 1 and Category 2 transactions by exploration companies must— (a) include a competent person’s report complying with sections 315 (2) and (3), if the information in such a report is relevant to the subject matter of the circular; (b) if a competent person’s report is included and the competent person is not, in the opinion of the ZSE, independent of the issuer, clearly disclose the nature of the relationship or interest between them; and (c) include a glossary of the terms used in the circular. SUB-PART B: MINING COMPANIES Criteria for listing
317. The ZSE may admit to listing on the Board the securities of an applicant notwithstanding that the
requirements of section 87 (c) are not satisfied, if— (a) the provisions of section 87 (a), (b), (d), (e) and (f) are satisfied; (b) the applicant undertakes or proposes to undertake mining; (c) the applicant demonstrates to the satisfaction of the ZSE that the applicant’s managers have satisfactory experience in mining; and (d) the applicant demonstrates to the satisfaction of the ZSE that the applicant is entitled to mine the relevant minerals. Contents of pre-listing statements, listings particulars, prospectuses and circulars prepared by mining companies
318. (1) The provisions of section 314 (1) apply, with any necessary changes, to mining companies, save
that the competent person’s report must also comply with subsection (3).
(2) In addition to the requirements of Part VII and the requirements of section 314 (a) to (f), an estimate of the mining and other related funding requirements for at least two years after publication of the pre-listing

S.I. 134 of 2019 statement must be included in the pre-listing statement, listing particulars, prospectuses and circulars prepared by mining companies. (3) Particulars of the estimated cash flow for either the two years after publication of the pre-listing statement or the period until the end of the first full financial year in which mining is expected to be conducted on an economic scale and relevant revenue, cost, capital expenditure, tax and other material financial details required to enable the calculation ofsuch cash flow must be included in the documentsreferred to in thissection. Competent persons’ reports
319. (1) The provisions of sections 315 (1) and (2) apply, with any necessary changes, to the contents of
a competent person’s report for mining companies. In addition, the competent person’s report must include— (a) in respect of the issuer’s mineral resources and reserves, a statement providing— (i) the geological features of the occurrence, the type of deposit and its dimensions; (ii) an estimate of the volumes, tonnages and grades, as appropriate; (iii) a general description of the methods by which the details under subparagraph (ii) were estimated; (iv) the anticipated mining tonnages or volumes; and (v) the processing volumes or tonnages, together with the other principal assumptions relating to forecast revenues and operating costs; (b) a statement in relation to the issuer, providing— (i) the production policy, including production rates of sites, mines and wells where production has already been commenced; (ii) the estimated production rates relating to new mines, or re-workings, or new drilling, or work-overs; (iii) an estimate of the working lives of each major property; (iv) an indication of the bases on which these estimates have been arrived at; and (v) the qualifications and experience of the key technical staff employed or to be employed; (c) the date on whichmining commenced oris expected to commence on the issuer’smajor properties; (d) an indication of the progress of actual working, including an analysis in narrative and numerical formof previous exploration, development andmining carried out on the issuer’smajor properties; (e) a commentary on the reasonableness of the directors’ forecasts, if any, of the rates of mining of the issuer’s major properties; (f) a commentary on the ownership, type, extent and condition of plant and equipment which is significant to the issuer’s operations and which is currently in use on the issuer’s major properties; (g) information on significant additional plant and equipment which will be required to achieve the forecast rates of mining; (h) an assessment of the value of the plant and equipment owned by the issuer currently in use for mining,save thatsuch an assessment will not be required if a statement is made confirming that the directors do not consider the plant and equipment to be ofsignificance to an investor’s assessment of the issuer’s operations; (i) basic information or valuation bases relating to all key criteria which may be used in arriving at a valuation based on a discounted cash flow mining model, also known as a net present value mining model. (2) A statement setting out any additional information required for an appraisal of any special factors affecting themining businesses ofthe issuer,including difficulties of accessto, orin recovery of,mineralresources and reserves and special circumstances, such as difficulties in transporting or marketing the ore which may affect the economic viability of the project, or an appropriate negative statement must be included in the competent person’s report. Press announcements and circulars
320. The provisions of section 316 apply, with any necessary changes, to mining companies.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019
PART XIV
Property Companies
Definitions
321. In this Part—
“gross assets” meansthe net book value of a company’s assets before deducting outstanding mortgages; “property” means immovable property, whether owned or leased; “property company” means a company primarily engaged in activities relating to property, including— (a) the holding of properties and development of properties for letting and retention of investments; and (b) the purchase or development of properties or both; “net annual rent” means the income generated by any property attributable to the company as estimated by an external valuer— (a) ignoring any special receipts or deductions arising from the property; and (b) before taxation, including tax on profits and any allowances for interest on capital or loans; “net book value” means the value of properties after adjusting their cost to reflect any depreciation or other adjustment so as to reflect the figure at which those properties are shown in the books of account; “published valuation” means the valuation referred to in the issuer’s annual financial statements or pre-listing statement or circular, whether produced independently or by the directors and stated as such; “external valuer” means a practising independent property valuer who is a member of the Institute of Valuers of Zimbabwe or a similar body accepted by the ZSE. Additional information for listing
322. A property company’s pre-listing statement must, to the extent relevant, include the information
required by Part VII (pre-listing statements), and in addition includes— (a) a summary of the property portfolio including location, tenancies, vacancies, material lessees, rent, lease expiry, review date, option to review, escalation, average property yields and current replacement costs. (Pie charts and bar charts may be used to illustrate the respective sectorial and geographical spread of properties in the property portfolio and leases falling due for renewal or review); (b) financial details, including— (i) a three-year profit history, which may be on an aggregated pro forma basis for the most recent financial period and on an individual basis for material properties for the last three financial years; (ii) statements of financial position for the last two years, which may be on an aggregated pro forma basis for the most recent financial period and on an individual basis for material properties for the last two financial years; and (iii) a valuation report in accordance with sections 324 to 330; (c) details, in respect of each of the promoters, managers, trustees and directors of the applicant or any subsidiary or holding company, of— (i) any direct orindirect beneficial interest in any property held by the applicant orto be acquired out of the proceeds of the issue, where any of them is or has contracted to become a tenant of any part of the property; and (ii) any relationship between any of them and another person where a duty in relation to that other person conflicts, or may conflict, with a duty to the applicant; and

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(d) in the case of a property managed by agents, details of their name, business address, terms of contract, remuneration, experience and qualifications. SUB-PART A: VALUATION REPORTS Requirement for a valuation
323. (1) A valuation report prepared by an external valuer must be obtained by—
(a) a property company which is a new applicant; (b) a company, if it makes an acquisition or disposal of property which is a Category 1 or Category 2 transaction or is a related-party transaction within the meaning of Part X and Part XI, respectively; (c) a listed property company which owns property constituting security for debt securities that must be listed; or (d) a listed property company which refers to the valuation of property in pre-listing statements or circulars. (2)Where a valuation report is included in a pre-listing statement or circular, there must also be a statement reconciling that valuation with the equivalent figure included in the listed company’s latest published statement of financial position. Valuation report
324. (1) A property company’s valuation report must be prepared by an external valuer.
(2) The valuation report to be included in a property company’s pre-listing statement or circular must— (a) state in respect of each property— (i) the valuation; (ii) its address; (iii) the nature and date of the valuer’s inspection; (iv) a brief description (such as land or buildings, approximate site and floor areas); (v) existing use (such as shops, offices, factories, residential); (vi) relevant planning permissions; (vii) any material contravention of statutory requirements; (viii) tenure (owned or leased, giving the term of any lease); (ix) vacancies in any leased property; (x) the main terms of tenants’ leases or sub-leases, including repairing obligations; (xi) the approximate age of any buildings; (xii) the present capital value of the property in its existing state; (xiii) the termsof anyinter-groupleaseonanypropertyoccupiedbythegroup,withanidentification of the property; (xiv) any other matters which materially affect the value of the property, including any assumptions and any information on contamination; and (xv) the source of information on the property and verification of the information; (b) state the name, address and professional qualifications of the valuer; (c) be dated and state the effective date on which each property was valued; (d) state any assumptions underlying the valuation; (e) where thedirectors have required avaluation ofthebenefitordetriment of contractual arrangements in respect of property or where there is thought to be a benefit in any options held, separate valuations including a reconciliation of the costs and values; and

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (f) in cases where directors have been beneficially interested, whether directly or indirectly, in any acquisition or disposal of any of the properties during the two years preceding the valuation, details of the nature and extent of such interests and the date of the transactions and the prices paid or received or other terms on which the transactions were effected. Alternatively, the information on beneficial interests of directors, whether direct or indirect, may be given elsewhere in the pre￾listing statement or circular. Valuations of property in course of development
325. Where the valuation is in respect of land currently being developed or in respect of which definite
development plans have been formulated for execution in the near future, the following additional information must be given in the property company’s valuation report— (a) whether planning consent has been obtained and, if so, the date of such consent and whether there are any material or onerous conditions attached to such consent; (b) the date when the development is expected to be completed and an estimate of letting or occupation dates; (c) the estimated total cost of carrying out the development, including the cost of financial carrying charges, letting commissions or, where part of the development has already been carried out, the estimated cost of completing the development; (d) the open market value of the land and buildings in their existing state as at the date of valuation; and (e) the estimated capital values of the land and buildings at current prices and on the basis of current market conditions— (i) after development has been completed; and (ii) after completion and letting of the property. Valuation of property occupied for purposes of business: investment property
326. (1) Property which is occupied for the purposes of a business should normally be valued at open
market value for its existing use. Where open market value for an alternative use materially exceeds this basis, the alternative use valuation should be stated but the costs of cessation and removal should be estimated by the directors and shown in the valuation report. (2) Property that is occupied for the purposes of a business must be valued in accordance with the relevant IFR standard or any other accounting framework acceptable to the ZSE. External property
327. If a property company owns property outside Zimbabwe, that property must be stated separately, its
basis of valuation clearly identified and a valuer’s report given.
Rentals used in valuations
328. In respect of each property which is rented out by the company, the current net annual rent and the
estimated future net annual rent at a named date where it differs materially from the current net annual rent must be included in the valuation report, based on its current open market rental value. Other general matters
329. (1) Where the issuer can satisfy the ZSE that it is a property trading company, certain requirements
of these rules do not apply to it. In such a case the ZSE should be consulted.
(2) Where a valuation is referred to in the pre-listing statement or a Category 1 or Category 2 transactions circular or a circular relating to a transaction with a related party, a copy of the valuation report must be made available for inspection by shareholders. Summary of valuations
330. The valuation report must include a summary of the number of properties and the aggregate of their
valuations must be split to show the separate totals for the properties that are owned and those that are held by the company under a lease. Negative values must be shown separately and not aggregated with the other valuations. Separate totals must be given for properties valued on an open market basis and on a depreciated replacement cost basis, and for any external properties.

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SUB-PART B: PROPERTY UNIT TRUSTS
Nature of property unit trusts
331. (1) Unit trust schemes in property shares are regulated by the Collective Investment Schemes Act
[Chapter 24:19] and must also comply with these rules.
(2) A property unit trust is restricted to investment in the shares of property-owning companies (fixed property companies) and in approved securities, pending investment of cash resources into property. After the initial issue of units, a property trust may only issue further units by way of rights issues to existing unit holders or in consideration for the acquisition of a property investment, subject to the requirements of the ZSE. (3)Where an issuer can satisfy the ZSE that it is a property unit trust, certain of these rules relating to property companies do not apply to it. In such a case the ZSE should be consulted. Management company
332. (1) A management company must—
(a) be formed solely for the purpose of establishing, carrying on or managing unit trust schemes in property shares and issuing unit certificates under those schemes, and must confine its activities solely to those purposes; (b) be registered as a public company under the Companies Act [Chapter 24:03]; (c) have a paid up share capital and non-distributable reserves which together amount to not less than RTGS$1 000 000,00 actually employed or immediately available for employment in its unit trust business: and (d) registered by the Securities and Exchange Commission. (2) A management company and its directors must not directly or indirectly derive any pecuniary advantage or personal interest from the acquisition or sale by the management company or by a fixed property company of any securities or underlying fixed properties of the property unit trust except as provided in the Collective Investment Schemes Act [Chapter 24:19] and the trust deed governing the property unit trust. The trust deed
333. A unit trust scheme in property shares is governed by a trust deed entered into between the management
company and the trustee. The trust deed sets out, among other things, the responsibilities, investment policy and restrictions of the management company, and the trustee’s responsibilities which include custody of underlying securities and ensuring that the management company complies with the provisions of the trust deed. A trustee must be qualified under the Collective Investment Schemes Act [Chapter 24:19] to act as a trustee. Additional information for listing unit trusts
334. The requirements for the listing of a unit trust scheme in property shares must include the information
required by Part VII (pre-listing statements), in so far as it is relevant, and must include— (a) registration approval of the scheme under the Securities and Exchange Act [Chapter 24:25]; (b) a valuation report for the scheme property portfolio; (c) the total number of units to be issued, the issue price per unit, the number to be subscribed for to finance the initial property portfolio and other relevant details regarding the amount— (i) to be acquired by the management company; (ii) to be issued to the vendors of any property acquired, or to be acquired; and (iii) to be offered for subscription, placing or public offer; (d) details of the management company including its shareholders, capital resources, professional and other appointments; (e) details relating to the acquisition of the initial property portfolio, including details of all immovable property held by every property company of which there are shares included in any of its portfolios, showing separately, in the case of each such property, the net price or valuation at which it was acquired by the fixed property concerned, and any other expenditure incurred by the company in connection with the acquisition thereof, such as agent’s commission and transfer costs;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (f) the details required by sections 324 to 330(valuation report); (g) details of the issue including, inter alia, the terms, conditions, offer period and listing dates; (h) the salient provisions of the trust deed; and (i) details of underwriting.
PART XV
Special Types of Issuers
SUB-PART A: PYRAMID COMPANIES
Classification as pyramid company
335. (1) Any new applicant must make full disclosure to the ZSE of any factors which could render
it a pyramid company, and any existing issuer must consult the ZSE before entering into any commitment, arrangement or agreement which could render it a pyramid company in relation to another issuer. (2) The ZSE will classify a company as a pyramid company where— (a) the company— (i) may exercise or cause the exercise of 50 per centum or more of the total voting rights of the equity securities of another listed company (“listed controlled company”); and (ii) derives 50 per centum or more of its total attributable income before tax from such listed controlled company; or (b) the company’s shareholding in the listed controlled company represents 50 per centum or more of its total assets. (3) The ZSE may, in exceptional circumstances, classify a company as a pyramid company where, in the ZSE’s opinion, the company holds or proposes to acquire a shareholding in a listed controlled company which represents or will represent 50 per centum or more of the pyramid company’s total assets, or produces, or is expected to produce, 50 per centum or more of its total attributable income before tax. (4) The ZSE may declassify a company as a pyramid company when it no longer meets the thresholds upon which its classification as a pyramid company was based. (5) In the event of a company being classified as a pyramid company in terms of subsection (2), the ZSE will take into account the provisions of this section when considering whether or not to grant a listing to, or to maintain a listing of a company which is to become, a pyramid company. Listing of pyramid companies
336. (1)Applications may be made to the ZSE for the listing of a pyramid company if the pyramid company
is a result of an unbundling or partial unbundling transaction. Where the listing of a pyramid company is the result of a partial unbundling, the ZSE will give the pyramid company six months from the date of the unbundling to introduce alternative assets that satisfy the criteria for listing in Part VII. Failure to meet this requirement may result in the company’s suspension and the ultimate termination of its listing. (2) The ZSE will not grant a listing to a pyramid company formed as the result of an unbundling transaction, or maintain the listing of a company which is to become a pyramid company as a result of an unbundling transaction— (a) where the company is or will become a second-stage pyramid company (the pyramid company of another listed pyramid company), unless the ZSE, after being provided with full details of the circumstances, issatisfied that the second-stage pyramid will emerge (or has emerged)fortuitously as a result of a merger or take-over, the prime purpose of which was not the creation of a second stage pyramid company;

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(b) unless—
(i) the minority holders of equity securities in the listed controlled company are offered equity securities on the same terms as are applicable to the controlling shareholders of the listed controlled company in proportion to their holdings in the listed controlled company; or (ii) the controlling shareholders of the pyramid company give an irrevocable written undertaking to the ZSE that they will not enter into any affected transaction in relation to the pyramid company unless the other party to such affected transaction undertakes to the ZSE to make a comparable offer to the holders (excluding the pyramid company) of the equity securities in the listed controlled company; (c) unless the listed controlled company has been listed for more than two years or it satisfies each of the following criteria— (i) 50 per centum or more of the listed controlled company’s total assets or 50 per centum or more of its total attributable income before tax is derived from operations which have been listed for at least 12 months; (ii) the listed controlled company is not classified by the ZSE to be a pyramid company; (iii) the management who control the listed controlled company held such control for a continuous period of at least 12 months prior to the listing of the pyramid company; (iv) the management of both the listed controlled company and the proposed pyramid company have been predominantly the same for the period referred to in subparagraph (iii); (v) the listed controlled company has issued audited financial statements covering the period referredtoin subparagraph(iii)thathavenotbeenqualifiedbythe listedcontrolledcompany’s auditors; and (d) unless the cover of the circular relating to the creation of the pyramid company contains a warning that it will reduce the effective voting influence of shareholders in the listed controlled company. (3) The ZSE may re-classify a listed pyramid company which ceases to meet the percentages referred to in section 335(2) (classification of pyramid companies). (4) The ZSE will not permit a listed controlled company to acquire securities in its listed pyramid company. SUB-PART B: REDEVELOPMENT ENTITIES General
337. In evaluating the listing of a redevelopment entity, the ZSE will have regard to the fundamental
principle that the principal objective of the re-development entity is the provision of assistance, through investment, loans or other means acceptable to the ZSE to persons, communities or undertakings which, in the opinion of the ZSE, would make a positive contribution to the socio-economic development of the country or a defined community. Criteria for listing of redevelopment entities
338. (1) The ZSE may admit a redevelopment company to listing, subject to conditions which may include
requirements that are additional to those contained in other Parts of these rules, notwithstanding that the normal requirements regarding details of assets and liabilities and profit history are not given. (2) The ZSE may admit a redevelopment company to listing notwithstanding that its assets may consist wholly or substantially of cash or short-dated securities. SUB-PART C: INDUSTRIAL—DEVELOPMENT STAGE SECTOR General
339. The ZSE may, in its discretion, list as development listed companies substantial industrial companies
that are in the development stage if they comply with the criteria for a listing set out in section 87(1), even if they do not have a satisfactory profit history in terms of section 87(1)(c). In exercising its discretion the ZSE will have regard to the guidelines and requirements set out in this section and section 341.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 Procedure for listing industrial development sector
340. Prior to the submission of an application for a listing as a development listed company, the following
procedure must be followed—
(a) a memorandum giving a summary of the nature of the applicant’s business, modus operandi, business plan and prospects (based on market segment growth, competitive analysis and market share) and details of the experience of its management, must be submitted to the ZSE through a sponsoring broker; and (b) after consideration of the memorandum, the ZSE will decide in principle whether it will consider, without commitment, a full application for a listing. Criteria for listing
341. Applicants seeking a listing of a company as a development listed company must satisfy the following
criteria—
(a) the applicant must have a subscribed permanent capital prior to offering any securities to the public of at least US$1,5 million including reserves but excluding minority interests, revaluations of assets that are not supported by a valuation by an independent professional expert acceptable to the ZSE and prepared within the last six months, and intangible assets; (b) although a profit history is not necessary, the applicant must provide a forecast of future profits or losses in respect of at least one year after completion of the development stage, together with such supporting reports or opinions as may be required by the ZSE; (c) the criteria set out in section 87 (b), (d), (e), and (f); and (d) at the beginning of the prospectus or pre-listing statement there must be a warning, in bold letters, that the applicant is still in the development stage and that it does not have a profit history which meets the criteria for a listing. Miscellaneous
342. The following miscellaneous requirements apply in respect of the listing of a company as a
development listed company—
(a) except as modified by sections 339 to 341 and by the ZSE, the listings requirements apply in respect of such companies; (b) in the event of an issuer seeking to raise capital after its initial listing, the relevant circular or pre-listing statement must carry a warning complying with section 341(d). SUB-PART D Bonds disclosure requirements
343. (1) Listing particulars and supplementary listing particulars must not be published before they have
been formally approved by the ZSE.
(2) Where a prospectus relating to the securities is required, the prospectus must comply with the requirements of the Companies Act [Chapter 24:03] and generally include— (a) details ofthe financial instrument including name, issue price, coupon rate, date interest is payable, date of issue, and total amount; (b) resolutions of the issuing authority; (c) details of approval from government in issues involving local authorities, parastatals and government￾controlled entities such as Zimbabwe Electricity Regulatory Authority (ZERA) established by the Electricity Act [ Chapter 13:19] and the Grain Marketing Board (GMB) established by the Grain Marketing Act [Chapter 18:14]; (d) details of the underwriter (including sub-underwriter where applicable) and guarantors; (e) full details of the intended use to which proceeds from the issue will be put; (f) full disclosure of the directors and principal officers of the issuer and the positions they hold, and of the issuer’s legal advisors, auditors and bankers;

S.I. 134 of 2019
(g) details of reduction and reducing amounts; (h) details of revenue and capital against which the security is charged and the revenue cover for interest with suitable audited certification and financial accounts; (i) the transfer secretaries, their address, telephone number and any other contact details; (j) the period for which the offer is open; (k) the address where copies of the prospectus are available; (l) the name of sponsoring broker; (m) a directors’ responsibility statement; (n) details of any convertibility of loans; (o) non-resident participation and any exchange control requirements; (p) the risks associated with the bond issue; and (q) relevant warning statements to potential investors, for example forward-looking statements. (3) Advertisements may be in the abridged form. The listing particulars must be published in at least two national newspapers of wide circulation prior to the listing and on the ZSE Data Portal.
PART XVI
Investment Entities
Application of Part
344. Investment entities include investment companies, private equity companies, active private equity
funds, investment trusts, unit trusts and private companies whose principal activity is the investment in securities or any other scheme that is deemed by the ZSE to be an investment scheme for the purpose of this Part. General
345. (1) Subject to this sections and section 346, these rules apply to investment entities.
(2)In evaluating a listing of an investment entity, the ZSE must have regard to the following principles— (a) the persons responsible for managing the investments must have acceptable qualifications and adequate experience; (b) applicant must have an acceptable risk management policy; (c) the applicant must not, to a significant extent, speculate in securities; and (d) an applicant must have an investment management policy with guidance on what is considered material, and changes to the policy must require shareholder approval. Criteria for listing
346. (1)The ZSE may admit to listing the securities of an applicant as an investment entity notwithstanding
that the entity does not comply with the main board listings criteria in Part V but meets the requirements in this
Part.
(2) For subsection (1) to apply, the applicant must satisfy the following criteria— (a) the applicant must comply with the criteria set out in section 87 except that, if it is not able to satisfy fully the criteria set out in section 87(c) (three years’ audited profit history) it must satisfy the ZSE that its managers have sufficient and satisfactory experience in the management of the types of investment in which the investment entity proposes to invest; (b) the applicant must express an intention that its income will be derived wholly or mainly from securities, and that the investment entity or any of its subsidiaries, will not conduct any trading activity that is material to the group as a whole. Materiality in this case means a threshold of 3 per centum; (c) if the investment entity invests in other companies or funds which in turn invest in a portfolio of investments, it must ensure that the policies and objectives of those companies and funds conform to the principal objectives of the investment entity;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (d) the board of directors or any equivalent body of the investment entity must be able to demonstrate that it will act independently of any investment managers of the investment entity, and that a majority of the directors are not employees of or professional advisors to the investment managers or any other company in the same group as the investment entity; (e) the management company must at all times have an investment in the capital of the applicant equal to at least 10per centum, unless the ZSE, in its discretion exercised after taking account of the relevant experience of the management company, otherwise decides; and (f) the applicant must disclose its portfolio to security holders on a quarterly basis. Contents of pre-listing statements and prospectuses
347. The requirements of Part VII apply to investments entities, but the following information must be
provided, where applicable—
(a) a description of the investment policy to be followed; (b) if it is intended to invest in less than 10 investments, a statement of that fact; (c) an analysis of the investment portfolio or proposed investment portfolio by— (i) broad industrial or commercial sector; and (ii) listed and unlisted investments; (d) an analysis of funds not invested in shares or securities; (e) an analysis of income between dividends, interest and other forms of income; (f) a list of all investments with a value greater than 5 per centum of the fund, and of at least the ten largest investments— (i) giving a brief description of the business; and (ii) stating— A. whether the securities held by the investment entity are listed and, if so, the name of the securities exchange; B. the proportion of share capital owned;
C. the cost of the investment;
D. the market value of the investment or, if the investment is not listed, a valuation by the directors of the investment entity and the date of such valuation; E. the income received during the year, highlighting any abnormal income; F. any extraordinary items; and G. the proportionate underlying net assets attributable to the investment; (g) an analysis of any provision for diminution in value of investments, giving the investments against which provision has been made and stating for each such investment— (i) its cost; (ii) its book value; (iii) the provision made; and (iv) the reason for the provision; (h) ananalysisof anyunrealisedprofits,statingseparatelythosebetweenlistedandunlistedinvestments; (i) details of the name of the group or company which manages the investments and an indication of the terms and duration of their appointment, the basis for their remuneration and details of their investment experience; (j) the net asset value per share and tangible net asset value per share; (k) a description of the risk associated with the investment; and (l) any other requirements prescribed by the specific industry or the ZSE from time to time.

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Annual financial statements
348. In addition to the information specified in Part IX (Financial information), an investment entity
must report the information required by section 347 (contents of pre-listing statements) in its annual financial statements. Investment policy statement (“IPS”)
349. The investment policy of an investment entity must be stated in its pre-listing statement or prospectus
and thereafter all material changes to such policy must be approved by security holders in a general meeting. The IPS should be available for inspection at the investment entity’s registered office.
PART XVII
Documents to be submitted to the ZSE
Application of Part
350. This Part outlines the documents to be submitted to the ZSE when corporate actions are undertaken
and contains the Schedules that are referred to in this Part.
General information
351. For the guidance and information of companies it should be noted that—
(a) documents submitted by companies must be copies, which become the property of the ZSE and are not returnable; (b) any proposed amendments must be submitted for approval by the ZSE before they are published; (c) if an application for listing is not made within 9 months of the examination of the applicant’s articles of association, then the articles of association must be re-submitted for examination for which a further fee may be payable; and (d) drafts of documents to be sent to shareholders which have been approved by the ZSE will not be regarded as final documents until the documents dispatched to shareholders are in conformity, other than in minor respects, with the draft approved by the ZSE. Documents to be submitted through sponsoring broker
352. Any document which requires the prior approval of the ZSE or action to be taken by the ZSE, must
be submitted through a sponsoring broker if it deals with any of the following matters— (a) acquisitions; (b) all announcements otherthan abridged annual financialstatements, interimreports and provisional reports; (c) applications for the listing of additional securities or amendments to listings or termination of listings; (d) reverse listings; (e) capitalisation issues; (f) changes of name; (g) conversion of securities; (h) debenture issues; (i) disposals; (j) explanatory statements; (k) constitutive documents or amendments thereof; (l) new classes of securities; (m) new listings; (n) notices of extraordinary general meetings;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (o) pyramid companies or changes of control; (p) “rescue” operations; (q) rights and claw-back offers; (r) schemes of arrangement, reorganisation, restructuring or unbundling; (s) share incentive or option schemes or amendments thereto; (t) “cash company” operations and reverse take-overs; (u) standby offers; (v) sub-divisions or consolidations of securities; (w) take-overs and mergers; (x) termination of listings at the issuer’s request; (y) transfer of listings; (z) trustee deeds or their amendments; or (aa) any other document bearing the logo of a sponsoring broker. Time at which documents are deemed to have been lodged
353. If a document is received by the ZSE on or before 1000 hours on any business day it will be deemed
to have been lodged at 1000 hours on that business day and, if it is received by the ZSE after 1000 hours on any business day, it will be deemed to have been lodged at 1000 hours on the following business day (“the lodgement time”). SUB-PART A: PROCEDURE FOR APPROVAL OF DOCUMENTS Initial submission for informal comments
354. (1) A copy of a document required to be approved by the ZSE in terms of these rules should be
submitted to the ZSE as early as possible for informal comments, together with payment of the appropriate inspection fee, where applicable. (2) Within two business days of the lodgement time, the ZSE must provide the relevant sponsoring broker with its informal comments on the document. Informal approval
355. (1) Once the informal comments of the ZSE have been incorporated into the draft document, it may
be submitted to the ZSE for informal approval.
(2) Within 48 hours of the deemed lodgement time for informal approval, the ZSE may— (a) grant informal approval, if the documents are found to be in accordance with these rules; or (b) refuse informal approval and return the documents to the sponsoring broker with comments, if they are in conformity with these rules, or without comments if an incomplete set of documents was submitted or the inspection fee was not paid. (3) In the event of a refusal in terms of subsection (2), the sponsoring broker may re-submit the documents after incorporating the ZSE comments or rectifying the omission, whereupon that subsection will again apply. (4) The procedures under subsections (2) and (3) will apply until the ZSE grants informal approval, but if the documents are returned to the sponsoring broker after the third submission, the ZSE may charge an additional inspection fee amounting to 50 per centum of the original inspection fee for every subsequent submission. Formal approval
356. (1) Once the informal approval of the ZSE has been obtained, four copies of the final documents
must be submitted to the ZSE for formal approval unless otherwise stated.
(2) Upon submission of documents for formal approval, the ZSE may—

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(a) within 24 hours of the lodgement time for formal approval, grant formal approval subject to such conditions as it considers necessary to impose; or (b) within 24 hours of the lodgement time for formal approval, refuse formal approval with comments, if the documents are capable of rectification. (3) It is the responsibility of practitioners and companies to ensure that the above procedure regarding the approval of documents can be accommodated within the timetables set out in the listings requirements. Practitioners are also advised to structure their timetables relating to extremely complex submissions so as to allow the ZSE, upon request, to have an additional 48 hours to consider the relevant documents. Annotation of drafts
357. All submissions, including submissions for informal approval, must be annotated in the margin to
indicate which specific paragraph numbers of these rules have been complied with. Allsubmissionssubsequent to the first submission must be marked up to reflect changes from the previous submission. A draft submitted by facsimile transmission or other electronic means is acceptable. Documents requiring approval
358. (1) The following documents must be approved by the ZSE prior to being announced—
(a) all press announcements including dividend announcements, quarterly, interim and preliminary reports and annual financial statements; (b) Part I, Part II and Part III documents for new applicants; (c) pre-listing statements and prospectuses; (d) circulars relating to— (i) rights issues; (ii) capitalisation issues; (iii) category 1 or category 2 transactions; (iv) reverse take-overs; (v) related-party transactions; (vi) changes of name; (vii) subdivisions and consolidations of securities; (viii) issues for cash; (ix) voluntary liquidations; (x) redemptions of securities; (xi) increase of authorised share capital; (xii) amendments to memoranda and articles of association; (xiii) any other corporate action requiring shareholder approval; and (xiv) documents sent to shareholders in terms of an applicable code of corporate governance. (2) The documents referred to in subsection (1) will be scrutinised by the ZSE in order to ensure, as far as may be possible in the circumstances, that all relevant facts are adequately disclosed in the clearest manner possible, and informal approval of the documents will be granted on this basis. (3) Unless otherwise specified, four copies of the documents referred to in subsection (1), together with a copy of the applicable exchange control approval (refer to section 371), must be submitted for formal approval by the ZSE. (4) Approval of documents by the ZSE will not in any way reflect the ZSE’s views as to whether the underlying transactions which are the subject of such documents are fair or reasonable. Neither does such approval constitute a guarantee by the ZSE of the accuracy of the contents of such documents.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 SUB-PART B: DOCUMENTS TO BE SUBMITTED BY NEW APPLICANTS Documents to be submitted
359. New applicants are required to submit the documents described in this section and section 358.
Part 1 documents
360. (1) The following documents are classified as Part I documents—
(a) the formal application for listing complying with First Schedule ; (b) an explanation of how the required spread of shareholders refer to section 87(e) and (f)) is to be achieved; (c) the proposed pre-listing statement dated and signed by the directors of the company or their alternates, or under power of attorney, and a statement of the proposed date and details relating to its publication in the press; (d) if the pre-listing statement is a prospectus, a certificate from the company’s legal practitioners stating that the requirements of the Companies Act [Chapter24:03] have been complied with; (e) ifthe pre-listing statement contains an accountants’report, a statementfromthe accountant that the contents ofthe pre-listing statement do not contradict the information contained in the accountants’ report; (f) where an offer is not being made in conjunction with the application for listing— (i) a list of shareholders; and (ii) an analysis of shareholders, distinguishing between public shareholders and those detailed in section 86 (public shareholders); (g) where applicable, the underwriting agreement (including sub-underwriting agreement where applicable) and— (i) a statement that the underwriting agreement will become irrevocable no later than 1630 hours on the day prior to the pre-listing statement being made available, or the last day to register where a rights offer circular is being made available; (ii) a statement of evidence that the underwriter is in a position, as at the date of signing the underwriting agreement, to meet the commitments in terms of the underwriting agreement and any other underwriting or similar agreements running concurrently with the present commitment; (iii) a statement of the number of securities offered to the public and the number of securities offered other than to the public; (iv) a statement of the number of securities offered as a preferential right to any other persons and a brief summary of such offer ; (v) a statement of the minimum subscription (if any) in terms of the pre-listing statement; and (vi) written confirmation that the underwriting agreement provides that the underwriting consideration will not be paid until the underwriting commitments have been met; (h) anotariallycertifiedcopyofthe constitutivedocumentsofthe applicant embodyinganyamendments required by the ZSE and complying with Tenth Schedule; (i) the debenture trust deed, if debentures must be listed; (j) a specimen, which must be cancelled by mutilation, of the share certificate, allotment letter, or other document in which it is desired to deal prior to the issue of shares or other security. The share certificate must comply with Eleventh Schedule (requirements for certificates of title); (k) a statement whether the company’s securities are listed on any exchange outside Zimbabwe and, if so, particulars of that listing; and, if an application for listing on any securities exchange has been refused or deferred details of the refusal or
deferral; (l) a list of other companies of which the directors are also directors or have been directors during the past five years, and the nature of business conducted by such companies;

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(m) the draft placing document and, where an issue of securities is being made by means of a placing, an audited list of share or debenture holders as at the date of listing; (n) all details concerning any planned price stabilisation exercise; (o) a notarially certified copy of the applicant’s certificate of registration, and certificate to commence business, if the company was registered within the last two years. Where the applicant is registered outside Zimbabwe it must furnish a notarial copy of the certificate of registration as a foreign company; (p) the general undertaking by the company in the form of a resolution of the board of directors, certified by the chairman and complying with Seventh Schedule (general undertaking) ; (q) original copies of any experts’ consents appearing in the pre-listing statement or prospectus; (r) three original copies of a statement by the issuer’s company secretary stating— (i) the applicant’s registered address and post office box number, if applicable; (ii) the address and post office box number, if applicable, of the transfer office; (iii) the name of the official authorised to deal with all matters relating to the company’s listing; (iv) the date on which the applicant’s financial year ends; (v) the approximate date on which the applicant’s annual financial statements will be issued; (vi) the approximate date on which the applicant’s annual general meeting will be held; (vii) the approximate date on which notices of the applicant’s annual general meeting will be issued; and (viii) the approximate date of declarations and date of payment of dividends; (s) payment of the documentation and listing fee as set out in Part XVIII (fees); (t) details of any dividend recommended or declared, but not yet paid as at the date of application; (u) a signed copy of Ninth Schedule (mechanical signature and certificates of title) dealing with mechanical signatures on certificates of title; and (v) a signed copy of Thirteenth Schedule (requirementsfor certified deeds) dealing with requirements for certified deeds and other temporary documents of title. (2) Should amendments be required by the ZSE to a Part I document, the amended document must be submitted and approved by the ZSE prior to publication.
Part II documents
361. The following documents are classified as Part II documents, and must be received by the ZSE
no later than 48 hours before the date of listing unless the listing timetable approved by the ZSE precludes such submission, in which case the relevant Part II documents must be submitted to the ZSE with the Part III documents— (a) a certificate by the company’slegal practitioners, auditors,merchant bankers orsponsoring brokers certifying that the pre-listing statement published was in accordance with the signed pre-listing statement approved by the ZSE or, if not, then in what respects it did not so conform; (b) a notarially certified copy of any prospectus to be published in connection with the issue, dated and signed by the directors of the company, or in their absence, by their alternates, or by persons making the offer; (c) details of and confirmation from the sponsoring broker and issuer that the required spread of shareholders (refer to section 87(e) and (f)) has been achieved; (d) one copy of the newspapers in which the pre-listing statement or announcement was published; (e) three copies of the published pre-listing statement or circular; (f) a notarially certified copy of the applicant’s constitutive documents embodying any amendments required by the ZSE. (These documents may be submitted within such extended period as may be agreed to by the ZSE, on the company’s written application setting out the circumstances);

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (g) a notarially certified copy of the applicant’s certificate of registration, and certificate to commence business, if the company was registered within the last two years. A company registered outside Zimbabwe must furnish a notarial copy of its certificate of registration as a foreign company; (h) a specimen (cancelled by mutilation) of the share or debenture certificates or other securities in which it is proposed to deal; (i) the general undertaking by the company in the form of a resolution of the board of directors, certified by the chairman complying with Seventh Schedule ; (j) the statutory declaration complying with Eighth Schedule ; (k) a copy of every prospectus or statement in lieu of a prospectus issued during the past three years; (l) where the issue of securities was achieved by way of a placing, a letter by the sponsoring broker stating that the provisions of Part V (conditions for listing) have been complied with; (m) copies of any experts’ consents appearing in the pre-listing statement; (n) three copies of a statement by the company’s secretary stating— (i) the company’s registered address and post office box number, if any; (ii) the address and post office box number, if any, of the transfer office; (iii) the name of the official authorised to deal with all matters relating to the company’s listing; (iv) the date on which the company’s financial year ends; (v) the approximate date on which the company’s annual financial statements will be issued; (vi) the approximate date on which the company’s annual general meeting will be held; (vii) the approximate date on which notices of the company’s annual general meeting will be issued; and (viii) regarding dividends, the approximate date of declarations, date of closing of transfer registers and date of payment; (o) payment of the listing fee as set out in Part XVIII (fees); (p) details of any dividend recommended or declared, but not yet paid, as at the date of the application; (q) mechanical signatures on certificates of title as prescribed in Ninth Schedule; and (r) requirements for certified deeds and other temporary documents of title (refer to Thirteenth
Schedule).
NOTE: Where any of these Part II documents are available at the date of submission of Part I of the application, they should be submitted together with Part I documents.
Part III Documents
362. The following documents are classified as Part III documents and must be submitted to the ZSE
within 14 days after the date of listing—
(a) a certificate signed by the auditors, certifying that the capital and any premium thereon, issued— (i) since the date of the last annual financial statements presented to shareholders; or (ii) if no annual general meeting has yet been held, since the date of incorporation of the company; have been subscribed and deposited with the company’s bankersfor the company’s account; (b) an audited list of all securities holders, by each class of security if applicable, showing the securities held by each security holder as at the date of listing; (c) a statement detailing–– (i) the number of securities applied for by the public; (ii) the number of securities allotted and the basis of allotment; and (iii) the number of securities taken up by any underwriter, sub-underwriter or placee; (d) an analysis of securities held by shareholders including—

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(i) the number of shareholders in Zimbabwe and the total number of securities held, exclusive of those referred to in subparagraphs (iii) and (iv); (ii) the number of shareholders outside Zimbabwe and the total number of securities held, exclusive of those referred to in subparagraph (iii) and (iv); (iii) the number of shareholders who are employees and beneficiaries of any trust or scheme for their benefit, and the total number of securities held by them; (iv) details of securities held by the directors, controlling shareholders, associates of such directors or controlling shareholders, associates of the company, vendors, promoters and underwriters (including sub-underwriters where applicable); and (v) the combined total of securities held by all shareholders. SUB-PART C: DOCUMENTS TO BE SUBMITTED BY ISSUERS Offers for sale and subscription
363. In the case of offers for sale and subscription, the following documents or information must be
submitted to and approved by the ZSE before listing can be granted— (a) the circular or pre-listing statement; (b) an original copy of the signed accountant’s report and relevant consent letters; (c) the information with respect to underwriting described in section 360(1)(g); (d) the application for listing complying with First Schedule; (e) copies of any exchange control approvals required; (f) copies of any experts’ consents appearing in the circular or pre-listing statement; (g) the appropriate documents and listing fees required by Part XVIII; (h) the director’s declaration for each director of the applicant as set out in Twenty-first Schedule; and (i) all details concerning any planned price stabilisation exercise. Rights and claw-back offers
364. In the case of rights and claw-back offers, the following documents or information must be submitted
to and approved by the ZSE before listing can be granted— (a) the circular or pre-listing statement; (b) the information with respect to underwriting described in section 360(1)(g); (c) the application for listing complying with Second Schedule; (d) the provisional allotment letter; (e) copies of any exchange control approvals required; (f) copies of any experts’ consents (refer to section 218) appearing in the circular or pre-listing statement; and (g) the appropriate documents and listing fees required by Part XVIII. Capitalisation issues and scrip dividends
365. In the case of capitalisation and scrip dividends, the following documents or information must be
submitted to and approved by the ZSE before listing can be granted— (a) the circular; (b) the application for listing complying with Third Schedule; (c) the form of election, which must contain at least— (i) a statement that the election may be made in respect of all or part of the shares held or deemed to be held at the close of business in the record date (fractions will be paid out in cash);

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (ii) the ratio of application; and (iii) if no late postal elections will be accepted, as statement to that effect; (d) copies of any exchange control approvals required; (e) copies of any experts’ consents (refer to section 218) appearing in the circular; and (f) the appropriate documents and listing fees required by Part XVIII. Issues for cash
366. The following documents or information must be submitted to and approved by the ZSE before listing
can be granted for an issue for cash—
(a) the circular;
(b) the application for listing complying with Sixth Schedule; (c) a statement detailing all issues of securities in the previous three years; (d) copies of any exchange control approvals required; (e) copies of any experts’ consents (refer to section 218) appearing in the circular; and (f) the appropriate documents and listing fees required by Part XVIII. Acquisitions and disposals
367. In the case of acquisitions and disposals, the following documents or information must be submitted
to and approved by the ZSE before listing can be granted— (a) the circular or pre-listing statement; (b) the acquisition or disposal agreement; (c) any vendor placing document; (d) articles of association of the listed company and the company being acquired; (e) the application for listing, if applicable, complying with Fourth Schedule; (f) copies of any exchange control approvals required; (g) an audited analysis of shareholders subsequent to the transaction; (h) copies of any experts’consents(see section 218) appearing in the circular or pre-listing statement; (i) the appropriate documents and listing fees required by Part XVIII; and (j) independent valuation reports. Periodical returns
368. (1) Company secretaries must diarise all periodical information and documents required by the ZSE
as set out in subsections (2) and (3). In the interests of registered, unregistered and future shareholders it is essential that the information and documents be sent to the ZSE in order that accurate information concerning the company may be promptly disseminated. (2) Every issuer must advise the ZSE, in writing, of— (a) any increase in or reduction of authorised share or loan capital. Such notification must be accompanied by a notarially certified copy of the certificate from the Registrar of Companies showing registration of the change of capital; (b) any increase of issued share capital and any issue of new securities. Where the new securities are of the same class as securities already listed, the procedure described in this Part is to be followed; (c) any declaration of dividends or rights and dates of closing of transfer registers, and the rate of non￾resident shareholders tax, if applicable, or non-declaration of preference or ordinary dividends; (d) changes in its board of directors; (e) change of company secretary;

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(f) change of address of its registered or transfer offices; (g) “stops” placed against transfer of its securities; (h) liquidation or reconstruction of the company and the dates of the closing of the transfer registers; (i) any change in its sponsoring broker; and (j) all corporate actions. (3) An issuer must furnish the ZSE promptly with the following— (a) one physical copy and one electronic pdf copy of— (i) notices of annual general meetings, including the dates of the closing of the transfer registers, if relevant; (ii) the annual financial statements; (iii) notices of general meetings; (iv) all notices, pre-listing statements and circulars issued to shareholders or debenture holders; (v) interim and preliminary reports; and (vi) quarterly statements of profits; when published in the press:
Provided that in order to obviate any delay that might be caused in making immediate disclosure of information by the printing of three copies, it is suggested that three copies of an announcement are sent immediately to the ZSE; (b) a physical and electronic pdf copy of the minutes of annual general meetings or general meetings, which should be furnished within 30 days of the holding of the meeting. Where copies of these documents are sent to shareholders, a further three copies should be furnished to the ZSE; (c) evidence that special resolutions have been registered by the registrar of companies, where special resolutions have been passed by shareholders; (d) notifications of any preliminary or other announcementsrequired by any othersecurities exchange on which the listed company, or any of its subsidiaries, are listed; and (e) one physical copy and one electronic copy, in a format prescribed by the ZSE from time to time, of all notices issued to the press which may be regarded as being of importance to investors. (4) Listed companies must submit for the ZSE’s prior approval— (a) draft circulars, timetables and other documents, as enumerated in the various Parts of these rules; and (b) proposed alterations to their articles of association; and (c) proposedalterationstoshare certificatesorproposednewshare certificates.Allspecimencertificates submitted must be cancelled by mutilation. SUB-PART D: DOCUMENTS IN RESPECT OF VARIOUS TRANSACTIONS Extensions of listed options
369. In regard to an extension of an option in respect of listed securities, the company must submit to the
ZSE for approval—
(a) a draft of the press announcements on the extension and the results of the shareholders’ meeting, which announcements should be published at least six weeks prior to the expiry date; (b) a draft of a circular to registered option holders and to shareholders in the form of a notice to shareholders to obtain their sanction or, if the power of extension has been delegated to the directors, notification of the extension of the options and the authority under which the extension was made. The circular must also state the procedure for recording the extension on the option certificates; (c) a copy of the proposed alteration or endorsement to be used on the option certificate as required by the Twelfth Schedule;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (d) a written application for the extension of the listing, stating— (i) number of options to which the extension applies; (ii) the period of the extension; (iii) the amounts of the nominal and issued capital and the number of the securities issued; and (iv) that all options issued have been granted a listing; and (e) the application, accompanied by— (i) a certified copy of the resolution extending the options; (ii) a certified copy of the relevant resolution of shareholders or, if extended by the directors, a copy of the resolution empowering the directors to extend the option; and (iii) a copy of the circular, approved by the ZSE and issued to registered option holders and shareholders. Expiry of listed options on securities or on other conversion rights
370. (1) An issuer must give the ZSE notice at least 30 days before the expiry date of any option or
conversion rights in respect of securities, stating— (a) the date on which the options or conversion rights expire, and requesting the removal of the options from the list from the close of business on the date of expiry; and (b) that all registered option holders or registered holders of the securities with conversion rights have been notified of the date on which the option or conversion rights expire and that after that date, the option or conversion rights will have no value. This notification must be published at least 6 weeks prior to the expiry date. (2) An issuer must apply to the ZSE without delay for the listing of securities which have been issued on the exercise of options. Exchange control approval
371. Where necessary the exchange control clearance must be obtained by the issuer and filed with the
ZSE as early as possible.
Change of name of listed company
372. (1) Before changing its name, an issuer must obtain preliminary approval from the ZSE for the
proposed new name and the proposed new abbreviated name to be used on the board.
(2) For the purposes of subsection (1), an application must be submitted to the ZSE together with the drafts of both circulars (refer to Part XII) for approval of— (a) acceptance of the new name; and (b) consequent amendment of the listing. (3) An application referred to in subsection (2) must embody an undertaking that, for a period of not less than one year, the former name of the company will be shown on the document of title in brackets under the new name of the company. (4) An application referred to in subsection (2) must be accompanied by— (a) a copy of the certificate from the registrar of companies giving approval of the new name. If this is not available at the time the application is made, the application should state that the name has been reserved or approved by the registrar of companies; and (b) a specimen of the proposed new share certificates. Share incentive schemes
373. The following documents pertaining to executive and staff share schemes should be submitted to the
ZSE for prior approval—
(a) a draft copy of the incentive or option scheme, which must comply with Fourteenth Schedule;

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(b) the trust deed, if applicable; and
(c) a draft of the circular or notice relating to the adoption or amendment of the scheme. Repurchase of securities
374. The following documents must be submitted to and approved by the ZSE before approval will be
granted for a repurchase of securities under Part VI— (a) the circular; (b) the application for cancellation of shares complying with Twenty-second Schedule; (c) original copies of any exchange control approvals required; (d) original copies of any experts’ consents (refer to section 218) appearing in the circular; and (e) the appropriate documents and fees required by Part XVIII. Payments to securities holders
375. The following documents or information must be submitted to and approved by the ZSE before
approval will be granted for a payment to securities holders in terms of Part VI— (a) the circular; (b) any application for listing, if applicable; (c) original copies of any exchange control approvals required; (d) original copies of any experts’ consents (refer to section 218) appearing in the circular; and (e) the appropriate documents and fees required by Part XVIII. Subdivision or consolidation of securities
376. The following information must be submitted to and approved by the ZSE before approval will be
granted for a subdivision or consolidation of securities— (a) the circular; (b) the application for listing, detailing the amendments to the listing including— (i) the new number of securities; and (ii) a new specimen share certificate; (c) original copies of any exchange control approvals required; and (d) the appropriate documents and listing fees required by Part XVIII. Odd-lot offers
377. The following documents or information must be submitted to and approved by the ZSE before
approval will be granted for an odd-lot offer to securities holders in terms of Part VI— (a) the circular; (b) the application for listing; (c) original copies of any exchange control approvals required; and (d) the appropriate documents and listing fees required by Part XVIII. Letters of application and letters of allotment
378. Where listing is desired in respect of letters of application, letters of allotment or other similar
documents, the proposed timetable (schedule of dates) should be submitted to the ZSE for approval prior to the closing of the transfer registers of the issuer. The procedure to be adopted should be discussed with the ZSE by the sponsoring broker.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019
PART XVIII
Fees
Original listing fees
379. (1) Where the ZSE has, subject to the provisions of the Securities and Exchange Act [Chapter 24:25],
granted an application made by an issuer for securities issued by him or her to be included in the official list, the issuer shall pay to the Exchange. In the case of equity securities–– (a) the fees for the listing shall be calculated and paid as stated in Twenty-third Schedule; (b) the monetary value of securities shall be determined as follows— (i) number of securities listed multiplied by the higher of the issue price or the middle market price on the date of signature of the agreement; and (ii) introductions which no price is attributable to the securities will be deemed to have a value calculated by multiplying the number of securities listed by the closing price on the first day of trading; (c) in the case of an issuer who is the government or a municipality, town or statutory body, an original listing fee stated in Twenty-third Schedule shall be charged in respect of each class of security concerned; (2) The above-mentioned fees shall be payable at the time of application, except, in the case of an introduction when they are due on the day following the listing. Additional listing fee
380. Where the ZSE has, subject to the provisions of the Securities and Exchange Act [Chapter 24:25],
granted an application made by an issuer for securities issued by him or her to be included in the official list, which securities belong to a class of security issued by him or her in respect of which such an application has previously been granted, the issuer shall, within a period fixed by the ZSE, pay to the Exchange an additional listing fee stated in Twenty-third Schedule in respect of those securities:
Provided that, if the issue of those securities does not entail an increase in the registered share capital of the issuer, no additional listing fee shall be payable. Annual sustaining and inspection fees
381. (1) An issuer of listed securities shall pay the annual sustaining and inspection fees to the Exchange
by the date set by the ZSE.
(2) An annual sustaining fee, except the calendar year in which the listing was granted, is calculated as prescribed in Twenty-third Schedule. (3) A current list of inspection fees is contained in Twenty-third Schedule.
PART XIX
Dual Listings and Listings by Foreign companies General
382. (1) A prospective issuer seeking a dual listing on the ZSE may decide where it intends to have its
primary or secondary listing or listings:
Provided that the ZSE may, in accordance with these rules, classify the issuer’s listing on the ZSE as a primary or secondary listing. (2) Where appropriate, an applicant which seeks a dual listing must be registered as a foreign company in terms of the Companies Act [Chapter 24:03] before making application for a listing on the ZSE. SUB-PART A: PRIMARY LISTINGS Conditions for primary listing
383. An issuer seeking a primary listing on the ZSE must fully comply with these rules.

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SUB-PART B: SECONDARY LISTINGS
Conditions for secondary listing
384. (1) An issuer seeking a secondary listing on the ZSE must—
(a) comply with the conditions for listing as set out in Part V and, unless otherwise stated in these rules, must disclose full details of the issuer in the pre-listing statement. The conditions for listing in Part V must be read taking into account the jurisdiction in which the issuer is incorporated; (b) confirm that it has a primary listing on another exchange and that it has the subscribed capital, as defined in section 87(a) of these rules; and (c) confirm that the primary listing referred to in paragraph (b) is at least on an equivalent board or exchange to that for which application is being made on the ZSE. The ZSE will therefore not grant a secondary listing to an issuer that has a primary listing on a junior or secondary market of an exchange. (2) Where an issuer has a secondary listing status, it will be required to comply with the listings requirements of the exchange where it hasits primary listing,save as otherwise specifically stated in these rules. (3) On application, the issuer must confirm to the ZSE that it isin full compliance with the requirements of the exchange or competent authority on which it has its primary listing. The ZSE will require a letter of support from the relevant exchange or competent authority. (4) The ZSE will not grant a listing or list securities which are not listed in the country of incorporation or in the country of primary listing, unless the issuer can demonstrate that the absence of such a listing is not due to any negative or problematic circumstances, events or regulatory issues. (5) Issuers must appoint and maintain, in accordance with Part III, a sponsoring broker based in Zimbabwe. (6) An issuer must have the required spread in accordance with section 87(e) and (f). Pre-listing statements
385. (1) An issuer must produce a pre-listing statement in compliance with the relevant provisions of these
rules, except as otherwise specifically stated in these rules. Where the disclosure requirements of Part VII relate to continuing obligations, the ZSE may allow the issuer to address this in the context of the requirements of the exchange where it has its primary listing. The procedure for approval as contained in Part XVII (documents to be submitted to ZSE) is applicable in such cases. (2) The issuer must disclose in the pre-listing statement headline earnings per share and diluted headline earnings per share, together with an itemised reconciliation between headline earnings and the earnings used in the calculation. (3) The ZSE will, for purposes of the pre-listing statement, accept financial information prepared in accordance with the accounting frameworks in Twenty-seventh Schedule. (4) For purposes of the pre-listing statement, the ZSE may accept extracts of financial information which have been prepared in accordance with subsection (5), provided that— (a) the information was published subsequent to the issuer being granted a listing on the exchange where it has its primary listing and in accordance with that exchange’s listings requirements; (b) the extracts are in compliance with IAS 34 or the equivalent standard of frameworks listed in Twenty-seventh Schedule; and (c) the pre-listing statement contains full details of the issuer’s accounting policies. (5) Notwithstanding sections (3) and (4), the issuer must, through its sponsoring broker, obtain a formal ruling from the ZSE on the exact presentation of the financial information in the pre-listing statement. (6) For purposes of the pre-listing statement, the ZSE will accept a competent person’s report required by Part XIII which has been prepared within the 9months prior to listing on the ZSE, but such a report must be approved by the ZSE. (7) The ZSE may allow issuers to modify the relevant Part I and II documents required by Part XVII where full compliance would be in conflict with the requirements of this Part or the exchange where it has its primary listing.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 Continuing obligations
386. (1) The ZSE will allow the requirements of the primary exchange to take precedence in relation to
issuers with a secondary listing on the ZSE, except that— (a) the annual financial statements and any other communication with shareholders must state where the primary and secondary listings of the issuer’s securities are; (b) when an issuer wishes to release any information on another exchange, it must ensure that such information is also released on ZSE data portal and that such release takes place no later than the equivalent release on the other exchange:
Provided that, if the ZSE is not open for business, it must ensure that such information is released through the ZSE data portal at the commencement of business on the next business day. The announcement must be submitted in accordance with Nineteenth Schedule (corporate actions and other regulatory information submission); (c) issuers must publish, in their quarterly, interim and year-end results, headline earnings per share and diluted headline earnings per share together with an itemised reconciliation between headline earnings and the earnings used in the calculation; and (d) issuers must advise, and obtain approval from, the ZSE with regard to the timetables for corporate actions. (2) The issuer must, by no later than 31 January of each year, submit details of the volume and value of securities traded over the preceding 12 months on all exchanges where it has a listing, in order for the ZSE to consider the issuer’s continued secondary listing status. (3) If both the volume and value of securities traded on the ZSE over the preceding 12 months exceeded 50 per centum of the total volume and total value of securities traded on all exchanges where the issuer has a listing, then the issuer’s listing status on the ZSE in respect of those securities may be converted to a primary listing. The converse applies when both the volume and value of securities traded on the ZSE was 50 per centum or below. (4) The issuer must advise its shareholders, by releasing an announcement on the ZSE data portal, each time that its listing status is changed. Dual listings
387. (1) A company with a dual listing must immediately notify the ZSE in writing of any suspension
or termination of listing on any other exchange on which it has securities listed.
(2) If an issuer decides to move its primary listing from the ZSE to another exchange but keeps a secondary listing on the ZSE, it must comply fully with the relevant provisions of this Part and obtain the approval of its shareholders. A majority of the votes of all shareholders present or represented by proxy at the general meeting, excluding any controlling shareholder, its associates and any party acting in concert, must be cast in favour of such a resolution. A secondary listing on another exchange only requires the approval of the issuer’s directors. (3) An issuer that has applied and has been granted permission for its ZSE-listed securities to be listed on another exchange must ensure that the securities will be accepted for transfer, without delay, if presented in any of the centres in which the securities are listed. Foreign companies
388. A foreign company with a listing on the ZSE must, whilst it remains listed on the ZSE, appoint
and maintain the appointment of, a person authorised to accept service of process and notices on its behalf in Zimbabwe and must notify the ZSE of such appointment and of its termination. In the event of termination, another person must immediately be appointed and the ZSE notified. In any notification under this section n, the following details must be provided to the ZSE— (a) the name of the person appointed and the person’s address for service of process and notices; (b) the person’s business and, if different, his or her residential address; (c) the person’s business and residential telephone number; and (d) the person’s facsimile number and e-mail address; and the company must notify the ZSE without delay of any change in the above particulars.

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Dual listed companies’ structure
389. (1) A dual listed companies’ structure applies to an aggregated group, with combined businesses,
accounted for under two separately listed companies, one housing the Zimbabwean-based businesses, with its primary listing on the ZSE, and the other housing the external business entities the overseas listed company with its primary listing on another exchange acceptable to the ZSE. If the primary listing of the overseas listed company is not on the ZSE, then it must have a secondary listing on the ZSE. The Zimbabwean issuer and the overseas issuer together comprise the dual listed company structure. (2)All conditions for listing in Part V of these rules must be complied with in respect of each company comprising the dual listed company structure in order to be listed on the ZSE. (3) The proportion of the combined business that each company comprising the dual listed company structure represents should be discussed with the ZSE well in advance of implementing the dual listed company structure in order to obtain the necessary consents or rulings in principle. (4) The companies in the dual listed company structure must be able to demonstrate that they participate in the control of the combined business. This must be proved by a formal agreement or veto rights or any other mechanisms acceptable to the ZSE. (5) Every company comprising the dual listed company structure is required to comply with all continuing obligations. (6) The provisions on related-party transactions set out in Part XI apply to the companies comprising the dual listed company structure, but not in respect of transactions necessary to constitute the DLC structure or transactions between the companies comprising the dual listed company structure or their respective groups. (7) Variations to any agreement governing the relationship between the companies comprising the dual listed company structure are considered to fall within Part XI. (8) Transactions undertaken by the companies comprising the dual listed company structure are subject to the transaction requirements set out in Part XI. The categorisation tests must be calculated by comparing the whole of the target with the whole of the dual listed company structure. (9) The provisions of these rules relating to controlling shareholders apply to a controlling shareholder of any company comprising the dual listed company structure. (10) Common accounting policies must be used for the companies comprising the dual listed company structure. (11) Aggregated annual financial statements must be published in accordance with financial standards for the aggregated dual listed company structure. In the event that the annual financial statements published for the aggregated dual listed company structure are not in accordance with financial standards, a comprehensive reconciliationtofinancialstandardsmustbepublishedandpresentedinthe currencyofficiallyinuse inZimbabwe. Annual financial statements for the companies comprising the dual listed company structure may be published as supplementary information to the aggregated accounts of the
dual listed company structure. (12) Quarterly and interim financial information, on an equivalent basis to subsection (11), on the aggregated dual listed company structure and for the separate companies, respectively, must be published. (13) Where an announcement isrequired, it must be released in accordance with the relevant exchange’s requirements and simultaneously on both the ZSE and the overseas listed company’s exchange. (14) With respect to any calculations, categorisations, or measurements in terms of the listings requirements applicable to any company comprising the dual listed company structure, the dual listed company will be regarded as one combined entity.
PART XX
Depository Receipts
Definitions
390. In this Part—
“depository” means a bank or other institution acceptable to the ZSE which issues depository receipts representing the securities of an issuerthat are held in trust by the depository in the issuer’slocal market.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 The depository may also act as a registrar, transfer agent and corporate actions agent and may cancel or issue the depository receipts for withdrawal or for deposit of the securities in accordance with a deposit agreement with the issuer for a sponsoring brokered programme; “depository receipt” or “DR” means an instrument representing an issuer’s securities, where the instrument confers rights in respect of such securities; “fully covered”, in relation to DRs, means DRs that at all times represent the issuer’s underlying securities held by the depository or its custodian, or any collateral held in terms of any pre-release arrangement; “sponsoring brokered DR” means a DR that is established at the direction of an issuer and in accordance with a deposit agreement between the issuer and the depository. General
391. The ZSE must be consulted at an early stage before formal application is made for the listing of DRs.
Depending on the nature and structure of any particular issue, the ZSE may modify the requirements set out in the following sections or may apply additional requirements. Sponsoring broker
392. The issuer of DRs must comply with the provisions of Part III relating to the appointment of a
sponsoring broker.
Criteria for the listing of DRs
393. (1) For DRs to be listed—
(a) the DRs must be sponsoring brokered;
(b) the DRs must be issued by a depository that is independent of the issuer; (c) the securities of the issuer must be held by a trust administered by independent trustees representing the interests of the holders of the DRs. The securities may, however, also be held by the depository or through a vehicle other than a trust, provided the ZSE issatisfied thatsuch vehicle or depository provides similar protection to safeguard the securities and, in particular, that the powers and duties of the directors or, in the event that the vehicle is not a company, the persons with corresponding duties and powers in relation to that vehicle, are limited as if the directors were trustees. Thus, the provisions of this paragraph and paragraph (d) that apply to trustees and trusts must apply with any necessary changes to the directors and to the vehicle used to hold the securities; (d) the entity referred to in paragraph (c) must hold in trust, for the sole benefit of the holders of DRs, the securities to which the DRs relate, all rights relating to the securities and all the money and benefits that it may receive in respect of them, subject only to payment of remuneration and proper expenses of the entity; (e) the DRs must be fully covered at all times; (f) the DRs must be fully paid up and freely transferable; (g) the securities which the DRs represent must be free from all liens and any restrictions on the right of transfer to the depository; (h) there must be a duly signed deposit agreement in place between the issuer, the depository and the custodian, if applicable; (i) 20 per centum of the DRs for which application for listing has been made must be held by the public and the number of public DR holders must be at least 50; and (j) the entity referred to in paragraph (c) must be independent from the issuer, unless otherwise agreed to by the ZSE, and it must be protected against dissolution or loss of assets should the issuer become insolvent. (2) An issuer must— (a) demonstrate to the ZSE that it meets the listings requirements set out in subsections (1); (b) be in full compliance with all the requirements of the exchange on which it has its listings; and

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(c) make arrangements to the satisfaction of the ZSE to ensure that sufficient DRs are available on the Zimbabwean DR register. (3) The depository must satisfy the ZSE that it has the relevant expertise to arrange an issue of DRs or has access to such expertise. The deposit agreement
394. The deposit agreement must provide for—
(a) the appointment of the depository by the issuer with authorisation to act on behalf of the issuer in accordance with the deposit agreement; (b) the status of DRs as instruments, representing ownership interests in securities of an issuer, that have been deposited with the depository; (c) the status of beneficial holders of DRs as the legal owners of those DRs; (d) the role of the depository to issue DRs as agent of the issuer and to arrange for the deposit of the securities which the DRs represent; (e) the duties of the depository, which must include the duty to keep in Zimbabwe and make available for inspection a register of holders of DRs and the transfers of the DRs, as well as the duty to keep a record of the deposits of securities which the DRs represent, the issue of DRs, the cancellation of DRs and the withdrawal of securities; (f) the role and duties of the custodian, if applicable, appointed by the depository to hold the deposited securities for the account of the depository on behalf of the holders of the DRs, segregated from all other property of the custodian; (g) the mechanism for the issue and registration of DRs by the depository upon receipt of securities in the issuer and the form of the DR; (h) the right of DR holders to surrender DRs to be cancelled in exchange for the delivery of the shares which the DRs represent, subject to payment of any applicable charges and taxes and any other legal or regulatory restrictions; (i) the right of DR holders to corporate action entitlements. The deposit agreement should address the rights, if any, of the parties to, and the procedures to be followed in, cash distributions, distributions of shares, rights issues or any other distribution accruing to the securities which the DRs represent, in accordance with Part VI and Part XII or in any other manner acceptable to the ZSE; (j) to the extent applicable, the right of DR holders to exercise the voting rights attached to the securities represented by the DRs and the procedures by which DR holders will be notified of shareholder meetings or solicitations of proxy votes and their entitlement to issue instructions to the depository as to how to exercise their voting rights; (k) the manner in which any corporate action or other re-classification of the issuer’s securities will be represented by and accrue to the DRs in accordance with the principle that holders of DRs must be treated as having generally equivalent rights to holders of the securities which the DRs represent; (l) the procedures by which the depository or the custodian, at the direction of the depository will, in consultation with the issuer, fix corporate action dates in accordance with Part VI; (m) the procedures by which the depository will, at the direction of the issuer, despatch to holders of DRs copies of all notices, reports, voting forms or other communications sent by the issuer to its shareholders and make available for inspection at its principal office, and at the
office of the custodian and sponsoring broker, copies of any such notices, reports or communication received from the issuer which information is also made available on the issuer , depository’s websites and the ZSE data portal; (n) the conditions and processes for the issue of new DRs if any DR instrument is lost, destroyed, stolen or mutilated;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (o) the obligations of holders of DRs, including any liabilities for taxes and other charges and the obligation to disclose the beneficial ownership of the DRs on request of the issuer, the depository or the ZSE; (p) a clear statement of the fees and charges payable by holders of DRs, including fees and charges payable to the depository and the custodian, if applicable; (q) procedures for the replacement or removal of the depository or the custodian by, or with the consent of, the issuer, including the obligation to inform DR holders by advance announcement of any prospective resignation, removal and replacement of the depository or custodian; (r) the obligation to inform DR holders in advance of, and to seek their prior consent to, any material changes to their existing rights and obligations under the deposit agreement by achieving a 75 per centum majority of the votes cast in favour of such material change by all DR holders entitled to vote, present or represented by proxy at the general meeting convened to approve such material change; (s) procedures for the amendment of the deposit agreement; and (t) the governing law of the deposit agreement. If that law is not Zimbabwean law, it must be one that is generally used in accordance with international practice and is acceptable to the ZSE. Pre-listing statements
395. An issuer must produce a pre-listing statement or prospectus and, in addition to the requirements of
Part VII, include the following—
(a) in respect of the issuer and the depository— (i) their full names; (ii) the place and date of their incorporation; (iii) the full names and addresses of their directors or, if the issuer is not a company, the persons with corresponding duties and powers in relation to the issuer of the DRs; (b) a statement that— (i) the ZSE’s approval of the listing of the DR is not to be taken in any way as an indication of the merits of the issuer or of the DR; (ii) the directors verified and are responsible for the accuracy and truth of the contents of the documentation; and (c) the names and addresses of the advisers and transfer secretaries of the issuer, if any; (d) an explanation of the tax implications to the DR holder; and (e) a risk statement on the front of the pre-listing statement substantially to the effect that— “Prospective purchasers of any DRs must ensure that they understand fully the nature of the product and the extent of their exposure to risks and that they consider the suitability of DRs as an investment in light of their own circumstances and financial position”; (f) full details of the deposit agreement as required by section 394; and (g) any other details that the ZSE may consider appropriate. Continuing obligations
396. (1) The issuer must ensure—
(a) the continued suitability of the DR for listing; (b) that prior notification, in accordance with the procedures outlined in the deposit agreement, is given to holders of DRs of any material change to the deposit agreement; (c) that application is made for the additional listing or withdrawal of listings of DRs in compliance with these rules; (d) that the pre-listing statement or prospectus and the deposit agreement is made available on the issuer’s and depository’s websites;

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(e) that a quarterly report is made to the ZSE giving a reconciliation of the amount of DRs outstanding at that time, the amount of underlying securities that such DRs represent and confirmation that the amount of DRs in issue did not exceed the authorised amount at any point in time during the quarter, in terms of the DR listing documentation; (f) compliance with the provisions set out in section 384; and (g) where the DRs must be held in dematerialised form, that the issuer or the depository are approved by and comply with the central securities depository rules and directives. (2) Where an issuer whose securities or DRs are listed on a foreign exchange wishes to release any information on that exchange, it must ensure that the information is also released through ZSE data portal and that such release take place no later than the equivalent release on that other exchange:
Provided that if the ZSE is not open for business, it must ensure that such information is released through ZSE data portal at the commencement of business on the next business day. Documents to be submitted to the ZSE on application for listing
397. In an application for listing of DRs, the following documentation must be submitted to the ZSE for
approval through a sponsoring broker—
(a) the pre-listing statement or prospectus;
(b) the approval from relevant regulatory authorities; (c) the deposit agreement, depository agent agreement, and custody agreement; (d) the formal application for listing complying with First Schedule; (e) confirmation in writing from the depository that the applicant has been approved in terms of the depository’s rules and directives; and (f) such other information as may be requested by the ZSE. Announcements
398. After the ZSE has approved an application for listing of the DRs, the issuer of the DRs must publish
an announcement within five business days prior to listing, containing— (a) the information referred to in Part XII in respect of the issuer of the DRs; (b) the period of marketing, if applicable, and the expected date of listing; (c) a statement that the ZSE has approved the listing; (d) the ISIN under which the DR will trade; and (e) places where copies of the DR pre-listing statement and deposit agreement can be obtained.
PART XXI
Sustainability Information and Disclosure
Board responsibility
399. The issuer shall be required to disclose in the chairman’s statement the relevance of sustainability to
the organisation and the organisation’s strategy for addressing sustainability issues.
Sustainability reporting
400. (1) The issuer must disclose its sustainability policy, including mitigation of risks, sustainability
performance data and other material information which deepens stakeholders’ understanding of corporate performance. (2) The issuer should provide a balanced and objective view of their performance by including both positive and negative impacts on environment and society, how it relates to its stakeholders and contribute to sustainable development.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (3) The issuer is encouraged to apply internationally accepted reporting frameworks (refer to section 401). (4) Where other frameworks are adopted, consideration should be taken that the framework provides— (a) benchmarks and performance measurement systems that allow comparison over time; (b) guidance on key performance indicators and data which should be measured. Reporting Standards and Guidelines
401. (1) The ZSE encourages the adoption of internationally accepted reporting frameworks, such as
the Global Reporting Initiatives (GRI) Sustainability Reporting Guidelines or Standards, in disclosing the company’s sustainability performance. The GRI Sustainability Reporting Guidelines or Standards are globally applicable and sets out general principles and indicators that listed companies can use to measure and report their economic, environment and social performance. (2) The Company shall apply the latest versions of GRI Guidelines or Standards to the level applicable to its context and nature of operation. (3) Where other standards or guidelines acceptable to the Exchange have been used, section 400 shall be used to evaluate the framework before adoption. Industry or sector specific reporting requirements
402. Some issuers operate in industries that are extremely sensitive to environmental and social issues such
as oil and gas, mining and metals sector which high environmental and social exposure and impacts warrant specialized reporting frameworks for meaningful assessments of organisational risk and performance. Such companies are required to— (a) adopt industry-specific reporting framework; or (b) the GRI Sector Supplements for selected industries; or (c) such internationally and nationally recognized reporting frameworks. Disclosure of Sustainability Information
403. (1) The Company shall provide sustainability information either:
(a) in an annual report, showing a holistic presentation combining or integrating financial and non-financial disclosures (environmental and social issues) reflective of the company’s corporate practices; (b) where an integration framework has been used, both frameworks and standards for integration and sustainability reporting should be acknowledged. In the event that a company adopt the Integrated Reporting Framework, all sustainability information should be referenced to a standalone comprehensive sustainability report prepared separately and available to stakeholders; or (c) a standalone sustainability report giving a comprehensive disclosure of environmental and social issues and the report should be referenced in any reporting of annual financial statements by providing a summary of sustainability information linked to the standalone report. Independent assurance
404. Independent assurance is not a mandatory step in the process of sustainability reporting. Where an
independent assurance report is provided, the following should be provided–– (a) an independent assurance statement published along the sustainability report, with the following information provided–– (i) sustainability assurance standards used; (ii) qualification and expertise of the practitioner, reporting standards used, signature and name of assurance practitioner, employing organisation and reporting date.

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First Schedule (Sections 360, 363 and 397)
APPLICATION FOR LISTING BY NEW APPLICANTS
1.1 The application should contain the following:—
(a) a statement that:
“It is understood that the granting of a listing pursuant to this application shall constitute a contract between this company or description of entity applying for listing if not a company and the Zimbabwe Stock Exchange (“ZSE”) and also between the directors * or description of office equivalent to directors , on a continuing basis, of the company * o r description of entity applying for listing if not a company and the ZSE and that in giving the General Undertaking referred to in section 361 of the listings requirements of the ZSE (“ the listings requirements ”), the company or description of entity applying for listing if not a company and its directors* or description of office equivalent to directors* undertakes to comply with the listings requirements as they may exist from time to time ” ; *delete whichever is not applicable. (b) full name of the applicant; (c) the addresses of the registered and transfer offices in the Republic of Zimbabwe; (d) regarding the applicant’s share capital:
(i) the amount of the authorised share capital of each class of share, and the nominal value and number of securities in each class; (ii) the amount of the share capital issued and to be issued in conjunction with the application of each class of share, and the number of those securities in each class, also indicating clearly in respect of which securities listing is applied for; and (iii) the nominal amount and number of securities in each class of the authorised but unissued capital of the applicant; (e) the nominal amount and number of securities of each class:
(i) offered to the public for subscription (either by the applicant or otherwise), and the date the offer was made; (ii) applied for, and the date the offer closed (where this information is available at the date of application); and (iii) issued or allotted, and the date of issue or allotment (where this information is available at the date of application). If an issue is being made in conjunction with this application, the opening and closing dates of the offer, the date of allotment and the date of issue of the certificates of title to be stated; (f) that monies in respect of excess applications will be refunded within 7 days of the closing of the offer; (g) a statement whether or not it is desired to deal in any other documents prior to the issue of the securities; (h) a statement as to the section of the List in which listing is applied for, and the abbreviated name of the applicant. Such abbreviated name must not exceed 4 characters, inclusive of spaces; (i) an undertaking by the applicant in the form of a directors’, or equivalent, resolution, that the documents referred to in sections361 and 362 will be submitted within the period specified therein; and (j) where the applicant is a bank or bank controlling company, a statement that the primary Act under which the company will be regulated is the Banking Act [Chapter 24.20].
1.2 The application must be signed by the secretary and a director, or equivalent, of the applicant and the sponsoring broker.
1.3 The application must be accompanied by a resolution of the directors, or equivalent, of the applicant authorising the
application for listing together with the relevant listing fees.
Second Schedule (Section 364)
APPLICATION FOR LISTING OF SECURITIES RESULTING FROM RIGHTS OFFERS, CLAW-BACK OFFERS AND RENOUNCEABLE OFFERS
2.1 The application for the listing of securities resulting from a rights offers, claw-back offers, and renounceable offers should
include:
(a) description and the number of renounceable letters for which a listing is applied for, and the relevant dates, in accordance with the relevant timetable in Part VI; (b) description and number of securities for which a listing is applied, and the relevant dates in accordance with relevant dates in PART VI; (c) brief description of the offer; (d) date on which renounceable letters and the circular or pre-listing statement will be posted; (e) date on which certificates will be issued; (f) last day for splitting and that the renounceable letters will be split as often as required; (g) date on which the offer closes; (h) the authorised and issued share capital of the applicant prior to the issue of the rights of claw-back securities;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (i) the issued capital after the issue of the rights, renounceable or claw-back securities; (j) in addition to the above information the following undertakings must be given— (i) all renounceable letters dispatched by the applicant to registered shareholders will be sent by mail; and (ii) all acceptances of the offer sent by post by the beneficial holders will be accepted by the applicant provided the envelope bears the postmark of a day on or before the closing of the offer and provided such acceptances are received within 3 business days of the closing of the offer. (k) the number of securities held in treasury; (l) the date on which the securities must be allotted and issued; and (m) the date on which the renounceable letters must be allotted and issued.
2.2 The application must be signed by the secretary and a director, or equivalent, of the applicant and the sponsoring broker.
2.3 The application must be accompanied by a resolution of the directors, of the applicant authorising the application for listing
together with the relevant listing fee.
Third Schedule (Section 365)
APPLICATION FOR LISTING OF SECURITIES RESULTING FROM CAPITALISATION ISSUES OR SCRIP DIVIDENDS
3.1 The application must state—
(a) the number of securities resulting from a capitalisation or scrip dividend issue for which a listing is applied; (b) the date from which the listing is to commence; (c) that the capitalisation or scrip dividend securities rank pari passu with the other issued securities of the applicant; (d) the date on which the capitalization or scrip dividend securities must be allotted; (e) the date on which the certificates of title must be issued; (f) the authorised and issued share capital of the applicant prior to the issue of the capitalisation or scrip dividend securities; (g) the issued capital after the issue of the capitalisation or scrip dividend securities; and (h) the number of securities held in treasury.
3.2 The application must be signed by the secretary and a director of the applicant and the sponsoring broker.
3.3 The application must be accompanied by a resolution of the directors of the applicant authorising the application for listing
together with the relevant listing fee.
Fourth Schedule (Section 367)
APPLICATION FOR LISTING OF SECURITIES RESULTING FROM ACQUISITIONS, TAKE-OVERS, MERGERS, SHARE INCENTIVE SCHEMES AND CONVERTIBLE SECURITIES
4.1 The following basic information should be given in the application for the listing of securities—
(a) description and number of securities for which a listing is applied and the date of listing; (b) reason for allotment and issue; (c) date of allotment; (d) date of issue of certificates; (e) a statement that the securities subject to the application rank pari passu in all respects with existing issued and listed securities of the same class; (f) the applicant’s present authorised and issued capital; (g) the issued capital after the issue of the securities which are subject to the application. (h) confirmation that, in respect of an acquisition of assets, the assets have been transferred into the name of the applicant or will be upon issue of the securities or other means of consideration settlement; (i) with regards to shares that are being issued in respect of the achievement of a profit warranty, reference to the date and medium (such as. publication or in the annual financial statements) in which the details of the transaction were announced; (j) where the application relates to a vendor consideration placing confirmation that the issuer has complied with section 138; (k) the issue price of the securities; and (l) the number of securities held in treasury.
4.2 The application must be signed by the secretary and a director, of the applicant and by the sponsoring broker.
4.3 The application must be accompanied by a resolution of the board of directors, of the applicant authorising the application
for a listing together with the relevant listing fee.

S.I. 134 of 2019
4.4 An application for share incentive scheme shares must include a statement confirming whether the scheme has been
approved by the ZSE and shareholders and, if it is utilising a previously approved block listing, the balance of shares in issue and the balance of the block listing (dollar value) before and after the block listing. The application for block listing should also include the previous application letter submitted by the issuer to the ZSE.
4.5 Where application is made to the ZSE to list securities which are the subject of a profit warranty, a letter submitted by
the issuer’s auditor confirming that the conditions required for the shares to be allotted and issued have been met, is to be submitted to the ZSE together with a reconciliation between the number of securities for which application is being made and the terms of the profit warranty.
4.6 The application must be accompanied by the relevant agreements.
Fifth Schedule (Sections 129, 143, 272, 288 and 290)
PART A
Independent fairness opinions
Scope of this Schedule
The objectives of this Schedule are as follows:— (a) to provide sponsoring brokers and issuers with certainty, at an early stage of the process, as to the acceptability or otherwise to the ZSE of a nominated independent professional expert who will issue a fairness opinion; (b) to provide guidelines regarding the required quality of independent fairness opinions generally; and (b) to ensure consistent and detailed reporting practices with regard to fairness opinions. As the issues of independence and competence will be unique to every transaction, this schedule provides guidance rather than specific rules. The overriding objective is to ensure that the board of directors receives competent and adequate advice from an acceptable independent and competent third party regarding a transaction. The board of directors must ensure that any director who is party to the transaction (being the subject matter of the fairness opinion) is excluded from the process of mandating the expert and providing the necessary recommendations to shareholders. The issuer must confirm this in terms of the Schedule 5C declaration.
5.1 A fairness opinion must:—
(a) be prepared by an independent professional expert, acceptable to the ZSE, who has no material interest either in the transaction or in the success or failure of the transaction; (b make appropriate disclosure where the independent professional expert has any existing or continuing relationship with the issuer or any other parties involved in the transaction; and (c) set out all of the material factors and assumptions taken into account in the preparation of the statement (as set out in paragraph 5.8 below).
5.2 At an early stage in a contemplated transaction and preferably before engaging a party to prepare a fairness opinion, the
sponsoring broker on behalf of the issuer, must submit to the ZSE— (a) a declaration of independence completed by the nominated independent professional expert, in the form set out in
Schedule 5A;
(b) a declaration of competence completed by the nominated independent professional expert, in the form set out in
Schedule 5B; and
(c) a declaration by the issuer, in the form set out in Schedule 5C.
The above declarations must be submitted for every transaction.
5.3 The ZSE may, unless the issuer is able to provide additional information to satisfy the ZSE, require the issuer to appoint
a different independent professional expert to prepare the fairness opinion if (based on the information received in terms of paragraph 5.2 above and the ZSE’s investigation thereof) the ZSE is not satisfied as to— (a) the independence of the nominated independent professional expert; or (b) the competence of the nominated independent professional expert with regard to the particular transaction; or (c) any reasons given by the issuer for the appointment of the nominated professional expert.
5.4 The ZSE undertakes to give the sponsoring broker its approval or disapproval for the appointment of the independent
professional expert within 120 hours of receipt of the duly completed declarations required in paragraph 5.2 above. No documentation will be accepted for review by the ZSE until approval for the appointment has been given.
5.5 Before issuing a fairness opinion, the independent professional expert must perform a valuation of the issuer or the subject
of the transaction. Where a valuation has been prepared by a competent third party (in respect of assets such as property or mineral reserves and rights, for example), the independent professional expert should set out the manner in which he has satisfied himself or herself that he can rely upon the valuation.
5.6 The ZSE’s request for the opinion of an independent professional expert may result in a statement that the transaction is
fair. Where this is not the case and the fairness is impaired, the independent professional expert should give full reasons for his opinion in this regard. Even if the opinion is that the transaction is fair, the independent professional expert must, where appropriate, emphasize critical matters upon which it has relied in arriving at the opinion.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019
5.7 The ZSE only requires that the expert opine on the fairness of a transaction though it would allow the expert to opine
on the reasonableness, provided detailed disclosure is made in this regard. Fairness is based on quantitative issues and reasonableness on qualitative issues. For illustrative purposes, in the case of a disposal to a related party, the transaction may be said to be fair if the consideration payable by the related party is equal to or greater than the value of the business that is the subject of the transaction. In other instances, even though the consideration may be lower than the value of the business, the transactionmay be said to be reasonable in certain circumstances, after considering othersignificant qualitative factors.
5.8 The content of the fairness opinion is at the discretion of the independent professional expert, but must include at least
the following basic elements—
(a) title;
(b) addressee;
(c) date of statement;
(d) opening or introductory paragraph with the purpose for which the report has been prepared; (e) reference to the relevant ZSE listings requirement in terms of which the opinion is being issued; (f) headings identifying the major sections including, but not limited to, introduction, procedures and the opinion; (g) an explanation as to how the terms “fair” and, if so mandated by the board of directors “reasonable”, as indicated in paragraph 5.6 above, apply in the context of the specific transaction; (h) details of the information and sources of information; (i) identification and discussion of both the external and internal key value drivers,sensitivities performed and assumptions used; (j) if applicable, a summary of the manner in which the independent professional expert has satisfied itself as to the appropriateness and reasonableness of the underlying information and assumptions; (k) a full explanation of the significant factors that led to the opinion given; (l) any limiting conditions; (m) the relationships between the issuer ,and any other parties involved in the transaction, and the independent professional expert, as required by paragraph 5.1(b) above and as identified in the declaration completed in terms of paragraph 5.2(a) above and disclosure of the number and value of shares acquired, if the expert’s fees were paid for in shares; (n) confirmation that a valuation has been performed and identification of the valuation methodologies applied and, where there has been reliance upon a third party valuation, confirmation that the independent expert is satisfied with this valuation; (o) a summary of other factors taken into account or procedures carried out in reaching the opinion; (p) a statement that an individualshareholder’s decisionmay be influenced by such shareholder’s particular circumstances and, accordingly, that a shareholder should consult an independent adviser if in any doubt as to the merits or otherwise of the transaction; (q) the opinion; (r) the independent professional expert’s name (including registration number if the expert is registered anywhere with any professional body), address and authorised signature; and (s) any other information that the independent professional expert feels is appropriate.
5.9 The date on which the opinion is issued must be the same as the date that the directors authorise the submission of the
relevant circular to the ZSE for formal approval.
5.10 The independent professional expert has a duty to evaluate all the information provided in a critical manner, as required
in paragraph 5.8(j) above. This in no way implies that the information must be audited or that the accuracy of all information must be checked. There must be a statement as to how the information has been evaluated and whether or not the expert believes that such information is reasonable, particularly where the information contains forecasts prepared by the management or directors of the issuer. Any statement indicating that there has been no independent verification or any other similar statement would only be permissible subject to the following— (a) the experts stating clearly what is meant by “no independent verification”; and (b) such statement not invalidating any work that has been done in terms of this paragraph.
5.11 The ZSE has the right, but not the obligation, to request the independent professional expert to—
(a) clarify any aspect of the statement; or
(b) expand the statement so as to address any issues of concern to the ZSE.
PART B
Expert’s Confirmation of Independence
[Please delete any paragraphs which are not applicable and which are the subject of a matter choice between paragraphs]

S.I. 134 of 2019
To: The Issuer, Regulation Division,
ZSE Limited,
44, Ridgeway North,
Highlands,
Harare.
…………..……….…….20……..
This declaration is completed with reference to:

• ................................... [insert name of listed company] (“the issuer”), the holding company, subsidiary companies, associate
  companies and joint ventures of the issuer (“the issuer’s related parties”);
• ............................................................... [insert brief description of the transaction] (“the transaction”).
  We acknowledge that this declaration has been requested by the ZSE for the purpose of confirming to the ZSE that we have no direct or indirect material interest in the transaction, or in the success or failure of the transaction that may mitigate against our appointment as the independent professional experts for the transaction. We further acknowledge that the independent professional expert may be— (a) a company or other entity that does not form part of a larger organisation; (b) a company or other entity within a larger organisation that can potentially offer a wide range of services to the issuer; or (c) a division within a company or other entity that falls into either of the two categories above. This declaration is therefore made in the context that it relates to the individuals, the division or the company directly responsible for undertaking the work and issuing the opinion, as well as any other parties within the larger organisation (if applicable) that are involved in issuing the opinion or will directly benefit or profit from the transaction. Full name of the independent professional expert: ....................................................... (“the expert”), a division or associate
  or subsidiary of .........................................................................................................................................................................
  I, ......................................................................................... [insert full names] being a .................................................. [insert relationship to expert such as director or partner] and duly authorised on behalf of the expert to give this declaration, declare as follows:

1. Internal confidentiality procedures
   (a) The expert and, if applicable, the group of companies to which the expert belongs or any other organisation to which the expert belongs, have internal compliance procedures in place dealing with communication amongst their employees and contractors and amongst the different companies and divisionsso asto ensure that information is kept confidential when appropriate; (b) Through these procedures, information of a non-public nature regarding the transaction is unknown to anyone outside of the expert and its larger organisation. In addition, the expert cannot be influenced with regard to the procedures that it follows and the opinion that it will express regarding the transaction. These procedures are as follows ……………… [please provide full details]. In addition, the expert has no objection to holding discussions with our legal compliance department.
2. Shareholding by directors, partners, employees and any of the expert in the issuer
   (a) The persons who are directors, partners, officers, employees, consultants or contractors (“staff”) of the expert and who are involved in the activities of the expert in relation to the transaction and who, further, have an interest in any class of share, debt or loan capital of the issuer, the related parties to the issuer or any other party involved in the transaction or who may benefit from the transaction, are as follows:
   Name of company
   Nature of holding Holding (number of shares and per centum) US dollar value of holding as at date of this letter Name of registered holder and beneficial owner and relationship of beneficial owner to the expert The expert does not believe that the above holdings will compromise the independence of the expert because ……………….. [please provide full explanation per individual disclosure] Or

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 (b) No persons who form part of the staff of the expert or who are otherwise directly or indirectly involved in the activities of the expert in relation to the transaction have any interest in any class of share, debt or loan capital of the issuer, the related parties to the issuer or any other party involved in the transaction or who may benefit from the transaction; and (c) The information given in (a) and (b) above has not changed in the last six months; Or (d) The information given in (a) and (b) has changed to the extent of ……………… [please provide full details of all changes].
3. Shareholding of the expert in the issuer
(a) The expert and the following companies and funds under the management of the expert have an interest (being all such interests of which the expert or the compliance department is aware) in the following shares, debt (short term or long term) and loan capital of the issuer or any other company which is one of the issuer’s related parties or any other party involved in the transaction or who may benefit from the transaction; Issuer or group company Nature of holding Holding (number of shares and per centum) US dollar value of holding as at date of this letter Name of registered holder and beneficial owner and relationship of beneficial owner to the expert The expert does not believe that these holdings will compromise the independence of the expert because ………………………… [please provide full explanation per individual disclosure] Or (b) Neither the expert nor any companies or funds under the management of the expert, has any interest (of which the expert or the compliance department is aware) in any class of share, debt (short term or long term) or loan capital of the issuer or any other company which is one of the issuer’s related parties or any other party involved in the transaction or who may benefit from the transaction; and (c) The information given in (a) and (b) above has not changed in the last six months; Or (d) The information given in (a) and (b) has changed to the extent of ……………………. [please provide full details of all changes]
4. Directorships of the staff of the expert
(a) The individuals named below, who form part of the staff of the expert, or any subsidiary or associate company of the expert, or the expert’s holding company, or any company in the expert’s holding company’s group are directors of the issuer, or of a company which is one of the issuer’s related parties or any other party involved in the transaction or who may benefit from the transaction; Name Employer Company of which individual is a director Nature of directorship (executive or non-executive and portfolio) The expert confirms that the above individuals will take no part in the expert’s activities in relation to this transaction; Or (b) No staff of the expert, or any subsidiary or associate company of the expert, or the expert’s holding company, or any company in the experts holding company’s group is a director of the issuer, or of a company which is one of the issuer’s related parties or any other party involved in the transaction or who may benefit from the transaction; and (c) The information given in (a) and (b) above has not changed in the last six months;

S.I. 134 of 2019
Or
(d) The information given in (a) and (b) has changed to the extent of …………………. [please provide full details of all changes].
5. History of services provided to the issuer
(a) The expert (and all subsidiary, associate companies and related parties of the expert) has provided the issuer, or the issuer’s related parties, with the following services for the following fees, or other economic benefit during the last 24 months commencing from the date of the last financial year end of the issuer or six months after the last financial year end, whichever is the later:
Expert or company in the expert’s group
Nature of service provided
Date service provided
Fees (or economic benefit) as per centum of total fees for the expert for that financial period (see Note 1) (Note 1: disclosure has been made where this percentage is equal to or greater than 10 per centum in the case of the expert itself or any subsidiary, associate company or related party of the expert.) Or (b) The expert (and all subsidiary, associate companies and related parties of the expert) has not provided the issuer, or the issuer’s related parties, with services during the last 24 months; and (c) The information given in (a) and (b) above has not changed in the last six months; Or (d) The information given in (a) and (b) has changed to the extent of ……………….. [please provide full details of all changes]. (e) The issuer is not a material client of the expert’s holding company, or any company in the expert’s holding company’s group.
6. Shareholding by the staff of the issuer
(a) The issuer (and all subsidiary, associate companies and related parties of the issuer), the issuer’s holding company (and any company in the issuer’s holding company’s group) and the staff of the issuer, who beneficially, directly or indirectly hold five per centum or more in the share capital of the expert or the experts holding company are as follows:
Name of Nature of Holding
(number of shares)
Name of registered holder and beneficial owner and relationship of beneficial owner person holding and per centum) to the issuer The expert does not believe that the above holdings will compromise the independence of the expert because ………………. [please provide full explanation per individual disclosure]; Or (b) Neither the issuer (and all subsidiaries, associate companies and related parties of the issuer) nor the issuer’s holding company (and any company in the issuer’s holding company’s group) nor the staff of the issuer hold 5 per centum or more in the share capital of the expert or the experts holding company either beneficially, directly or indirectly.
7. Directorships of the staff of the issuer
(a) The individuals named below, who form part of the staff of the issuer, or any subsidiary or associate company of the issuer, or the issuer’s holding company, or any company in the issuer’s holding company’s group are directors of the expert or any related parties of the expert or any other party involved in the transaction or who may benefit from the transaction;

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 Name Employer Company of which individual is a director Nature of directorship (executive or non-executive and portfolio) The expert confirms that the above individuals will not be involved in the expert’s activities in relation to this transaction; Or (b) No staff of the issuer, or any subsidiary or associate company of the issuer, or the issuer’s holding company, or any company in the issuer’s holding company’s group is a director of the expert or any related parties of the expert or any other party involved in the transaction or who may benefit from the transaction.
8. Other
[please delete any paragraphs that are not applicable] (a) The following matters are onesthat the expert or our compliance department is aware of which may affect the expert’s independence from the issuer or the transaction; Or (b) There are no other matters of which the expert or our compliance department is aware which may affect the expert’s independence from the issuer or the transaction.
9. Fees to be paid for providing the fairness opinion
(a) Neither the fees (or other benefit) to be paid for providing the fairness opinion nor any other fees (or other benefit) receivable from the issuer or the issuer’s related parties or any other party, are contingent upon the outcome of the transaction; (b) The fee to be paid for providing the fairness opinion, expressed as a percentage of the fees:
(i) is less than 10 per centum of the gross fees received by the expert for the last financial year of the expert; and (ii) the total of all fees receivable from the issuer is not more than 5 per centum of the budgeted fees of the expert for the current financial year. If the expert is unable to provide a positive confirmation to (i) or (ii), they should provide the details of the fees, expressed as a percentage of the gross fees received by the expert for the last financial year and as expressed as a percentage of the budgeted fees for the expert for the current financial year; (c) The fees payable for the fairness opinion must be paid in shares of the issuer or are linked to the ability to be issued as shares and the percentage holding which will be held by the expert in the issuer after the transaction will be …… (percentage) of the total shares in issue. This shareholding neither makes the expert a material shareholder of the issuer nor is the shareholding material to the expert in the context of the expert’s investments as reflected in the expert’s balance sheet; or (d) The fees for providing the fairness opinion must be received in cash and are in no way linked to the ability to convert those fees into shares.
10. General
(a) The expert will inform the ZSE immediately of any changes to the information given in this declaration that comes to the attention of the expert between the date of this declaration and the date of issue of the fairness opinion; and (b) The contents of this declaration have been discussed with the compliance officer of the expert and all other relevant directors and employees of the expert who maintain the information provided in terms of this declaration; and (c) Based on the fact that the expert has made all reasonable enquiries in order to complete this declaration, the information disclosed in this declaration is accurate and complete. Signed by ................................................................. [insert full names] For and on behalf of ..........................................................................................[insert name of expert]

S.I. 134 of 2019
Schedule 5B
Expert’s declaration of competency
To: The Issuer Regulation Division,
ZSE Limited,
44, Ridgeway North,
Highlands,
Harare.
…………..……….…….20……..
Full name of the independent professional expert: ........................................................... (“the expert”) I, .................................................. [insert full names] being a .................................................. [insert relationship to expert such as director or partner] and duly authorised on behalf of the expert to give this declaration, declare as follows:

1. I understand that an independent fairness opinion is required in terms of section….…….. of the Listings Requirements of
   the ZSE Limited with regard to ……………………. [insert brief description of the transaction] (“the transaction”).
2. The expert has been briefed by…………………………, who is a…………………… [insert position such as. director] of
   the issuer, and…………….…… [insert name of company] who is the issuer’s adviser on the transaction, as to the nature of this assignment.
3. The directors, partners, officers and employees (“staff”) of the expert allocated to this assignment have the necessary
   qualifications and expertise, as detailed below:
   Name
   (Note 1)
   Responsibility on assignment
   Professional
   Qualifications
   Abridged experience in similar assignments
   (including number of years of experience)
   (Note 1: The details of at least 2 people included in the team preparing the independent opinion must be provided. In addition, the details of one individual responsible for the independent review process discussed in paragraph 5 below must also be provided). 4.— (a) The expert has all the necessary competencies to carry out this assignment (as detailed in paragraph 3 above); or (b) The expert does not have all the necessary competencies to complete this assignment, and has engaged or will engage ..…………….. (“the third party”) to assist with the assignment. The third party has completed Schedule 5A and has the necessary qualifications and expertise, as detailed below. [delete whichever of (a) or (b) is not applicable]
4. An internal review and quality control process exists at the expert that will ensure that someone other than the senior
   person responsible for the assignment reviews the final opinion. That quality control process involves the following …………………… (full details to be included) or is identical to the detailed procedures set out in the Schedule 5B declaration submitted to the ZSE on ………………………, a copy of which is attached.
5. The issuer has undertaken that it will provide the expert with all the information that we have requested or may need to
   request in order to prepare the fairness opinion.
6. The expert will undertake a proper evaluation of all information provided to us by the management and directors of the
   issuer.
7. The expert will inform the ZSE Issuer Regulation Division of any changes to the information given in this declaration
   between the date of this declaration and the date of issue of the fairness opinion.
   Signed by ........................................................................................... [insert full names] For and on behalf of
   .......................................................................
   [insert name of expert]

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019
Schedule 5C
Declaration by the issuer
To: The Issuer Regulation Division,
ZSE Limited,
44, Ridgeway North,
Highlands,
Harare.
…………..……….…….20……..
Fullname of the issuer: .................................................................................................................................................................
I, ……………………., [insert full names], being a ………………… [insert relationship to issuer such as. director] and duly authorised on behalf of the issuer to give this declaration, declare as follows:

1. I understand that an independent fairness opinion is required in terms of section……….. of the Listings Requirements of the
   ZSE Limited with regard to …………………………………. [insert brief description of the transaction] (“the transaction”).
2. I have briefed …………… [insert name of expert] (“the expert”), on the transaction and as to the nature of this assignment.
3. Due to their involvement in the transaction, …………………………………..(please insert the names of any directors of
   the issuer who could have a conflict of interest), are not in any way involved in the process of obtaining the independent fairness opinion.
4. The issuer has provided the expert with all the information requested that is relevant for the purpose of issuing the fairness
   opinion on the transaction and will continue to provide all such further information as the expert may request.
5. The issuer did not approach the independent professional expert in order to agree a price at which the independent professional
   expert would find the transaction fair.
   6.—
   (a) The issuer approached the following parties formally, or informally, with a view to their possibly issuing the fairness opinion, but this was not done in orderto find the mostfavourable view from a number of potential independent professional experts. Rather, we did or did not retain their services for the reasons given below:
   Name of firm approached and contact details
   Reason for appointing or not appointing them
   Or
   (b) The expert was the only party approached with a view to obtaining a fairness opinion in relation to the transaction; and (c) All parties approached were required to sign confidentiality agreements which bind them until such time as the transaction is announced and also in the event that the transaction does not proceed and is thus not announced.
6. The issuer believesthat the expert issufficiently independent and hasthe necessary competence to execute this assignment.
7. The issuer will inform the Issuer Regulation Division of any changes to the information given in this declaration between
   the date of this declaration and the date that the fairness opinion is issued.
8. The issuer consents to the ZSE contacting the parties set out in paragraph 5 above and waives, in favour of the ZSE, its right
   to confidentiality in respect of its dealings with such parties, in order for the ZSE to verify the reasons for the appointment or non-appointment of such parties.
9. In the instance where the expert is the auditor of the issuer, we confirm that the appointment has been approved by the
   audit committee (and attach a copy of this approval).
   Signed by ........................................................................................... [insert full names] For and on behalf of
   .......................................................................
   [insert name of issuer]

S.I. 134 of 2019
Full name of the issuer’s sponsoring broker: ………………………………………………….………………………………….… I, …………………….[insert full names], being a …………………[insert relationship to sponsoring broker such as. director] and duly authorised on behalf of the sponsoring broker to give this declaration, declare that the sponsoring broker:
(a) has ensured that the issuer understands the declaration that it has signed; (b) has made sufficient enquiries to ensure that this declaration has been completed accurately by the issuer and after due consideration; (c) has ensured that the issuer and the expert have received a full explanation of what is expected from them with regard to the issue of a fairness opinion; and (d) has undertaken to inform the ZSE immediately if it becomes aware that any information given by the issuer or the expert in the Schedules 5A, 5B and 5C has changed between the date of this declaration and the date of issue of the fairness opinion. Signed by ........................................................................................... [insert full names] For and on behalf of
.......................................................................
[insert name of sponsoring broker]
Sixth Schedule (Section 366)
APPLICATION FOR LISTING OF SECURITIES RESULTING FROM AN ISSUE FOR CASH
6.1 The application must state:
(a) the number of securities for which a listing is applied; (b) the date from which the listing is to commence; (c) the securities rank pari passu with the other issued securities of the applicant; (d) the date on which the securities must be allotted; (e) the date on which the certificates of title must be issued; (f) the authorised and issued share capital of the applicant prior to the issue of the securities; (g) the authorised and issued capital after the issue of the securities; (h) the number of public shareholders in the applicant and the number and percentage of each class of security held by them; (i) the level of voting required at the general meeting required by the listings requirements to approve the issue of securities for cash; (j) when the securities holders approved or will approve the issue; (k) details of all issues of securities during the current financial year; (l) that the issue will be to public shareholders; and (m) what discount or premium, if any, the securities must be issued at. (n) the issue price of the securities; and (o) the number of securities held in treasury.
6.2 Where applicable, the application must be accompanied by a fairness opinion on the issue from an independent professional
expert acceptable to the ZSE.
6.3 The application must be signed by the company secretary and a director, of the applicant and by the sponsoring broker.
6.4 The application must be accompanied by a resolution of the directors, of the applicant authorising the application for listing
together with the relevant listing fee.
6.5 The application must be accompanied by the relevant agreements.
Seventh Schedule (Sections 77, 360 and 361)
GENERAL UNDERTAKING
The following provisions should be contained in the general undertaking by the issuer which should be in the form of a resolution of directors certified by the Chairperson:
7.1 That the issuer will not apply for the loan, or return, of any document submitted in support of the application for listing,
and that all such documents will become the property of the ZSE.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019
7.2 That the issuer agrees that in the event of the application for listing being granted such listing shall be subject to the listings
requirements which now are or hereafter may be in force.
7.3 That no restrictions are placed on the transfer of fully paid securities other than when the relative statutory requirements
prevail.
7.4 A statement if companies do or do not propose to introduce the “Temporary Documents of Title ” procedure and that no
charge will be made in Zimbabwe for transfer of securities or the splitting of certificates of title.
7.5 That no charge will be made in Zimbabwe for the registration of any powers of attorney or letters of administration.
7.6 That the articles of association of the issuer and its subsidiary companies comply with the listings requirements.
7.7 That securities in each class for which listing is applied rank pari passu in respect of dividends, rights and in all other
respects. It should be noted that a statement that securities in each class rank pari passu is understood to mean that:
(a) they are in all respects identical;
(b) they are of the same nominal value, and that the same amount per share has been paid up; (c) they carry the same rights as to unrestricted transfer, attendance and voting at meetings, and in all other respects; and (d) they are entitled to a dividend at the same rate and for the same period, so that at the next ensuing distribution the dividend payable on each share will amount to exactly the same.
7.8 That in the event of a further issue being underwritten, the issuer will disclose with the issue the information which is
required under section 188.
7.9 That in the event of any further offer of securities to shareholders, powers of renunciation will be granted in respect of any
rights accruing to shareholders and an application for listing of the provisional documents will be made within sufficient time before the closing of the share registers. Should it be desired to depart from this procedure, the consent of the ZSE must be obtained.
7.10 That the minutes of all shareholders’ meetings, either general or special, will be read at the next succeeding meeting of
shareholders at the request of any shareholders at the meeting, if the proceedings of such meeting have not been made available.
7.11 That should the directors of the issuer declare a final dividend prior to the publication of the annual accounts, the dividend
notice given to shareholders will contain a statement of the ascertained or estimated combined net trading profits of the issuer and its subsidiaries for the year, and also particulars of any amounts appropriated from reserves, capital profits, accumulated profits of past years, or other special source, to provide wholly or partly for the dividend.
7.12 That where the issuer is already listed or is subsequently granted a listing on another securities exchange and notification
of any preliminary or other announcement is made by the issuer from time to time to that securities exchange copies of all such notifications will be made available simultaneously to the ZSE.
7.13 That the issuer will, in future, furnish the ZSE with three copies of the issuer’s annual financial statements when they are
issued for distribution to broking members.
7.14 That all communications from the issuer to the ZSE will be by letter, and will emanate from the secretary of the issuer or
any other duly authorised persons to whom all correspondence from the ZSE should be addressed.
7.15 That in the event of the company being placed in corporate rescue or liquidation, whether voluntary or compulsory,
provisional or final, the issuer will immediately notify the ZSE of this fact.
7.16 Should the issued share capital of the issuer for which listing is applied, consist of securities without distinctive numbers,
the following additional undertakings are required:
(a) that all the said securities (or in the case of these being more than one class of share, all the securities of each respective class) are, and will remain identical in all respects, that is— (i) they are of the same nominal value and are all fully paid; (ii) they carry the same rights as to unrestricted transfer, attendance and voting at meetings and in all other respects; and (iii) they are entitled to dividend at the same rate and for the same period, so that on the next ensuing distribution and the dividend payable on each share will amount to exactly the same; (b) that before taking any action which, for statutory or other reasons would require the reinstatement of distinguishing numbers of the said securities or would or might cause difficulty or doubts in distinguishing between securities for which listing is granted and other securities in the capital of the issuer, formal notice will be given to the ZSE of the intentions with full particulars of all relevant facts; (c) that where the directors have resolved to convene a shareholders’ meeting to consider a special resolution for the consolidation or subdivision of securities or for the increase of the authorised share capital of the issuer notice thereof will, within 48 hours of the passing of the directors’resolution be given in writing to the ZSE. Notice in writing must also be given to the ZSE within 48 hours of the issue by the issuer of additional securities of any class. In either case, full particulars of all relevant facts and copies of all relevant documents, resolutions and circulars must be incorporated in or, in the case of copies, accompany, the notice.

S.I. 134 of 2019
(d) regarding such issued share capital, compliance will be made with any requirements of the ZSE necessary for the maintenance or grant of listing, as the case may be for such capital, especially that an application for listing for new securities ranking pari passu will be made within 30 days from date of issue; (e) that the issuerwill acceptforregistration transfer deeds containing no distinctive numberswhere the relative certificates of title, issued prior to the cessation of distinctive numbers, bears distinctive numbers, and vice versa; and (f) where the securities, which are the subject of this application are also listed on any other securities exchange evidence must be submitted that such listing is in respect of securities without distinctive numbers. Eighth Schedule (Section 361) STATUTORY DECLARATION The sworn declaration by the Chairman and company secretary must state, to the best of their knowledge, judgment and belief, arrived at after due and careful enquiry, where applicable, the following particulars:
8.1 That all documents required by the Companies Act [Chapter 24:03], have been duly filed with the Registrar of Companies,
and that all legal requirements have been fulfilled.
8.2 That the minimum subscription has been received, if the issue was not fully underwritten.
8.3 The number of securities, or amount of stock or debentures applied for by the public.
8.4 The number of securities, or amount of stock or debentures issued for cash to the public, with price of issue and the actual
amount per share paid thereon in cash.
8.5 The number of securities, or amount of stock or debentures allotted for a consideration other than cash.
8.6 That the certificates, or debentures or other documents in which it is desired to deal have been or are ready to be delivered,
and that they are identical to the specimen approved.
8.7. That, where applicable, the purchase of any assets have been completed, their transfer registered in the name of the issuer
and the purchase money was paid subsequent to registration of transfer. Where any such purchase has not been completed or registered an undertaking that completion will be conditional upon registration.
8.8 That, where applicable, a debenture trust deed has been executed and completed, the effect of such trust deed, and the
nature of the security created thereby in favour of the debenture holders or debenture stockholders.
8.9 That all monies refundable in respect of any application or where no allotment has been made, have been refunded to the
applicants.
8.10 That foreign companies will open and maintain a transfer office in Zimbabwe during such time as the securities are listed
on the ZSE.
8.11 That all documents specified in section 219 have been or are lying open for inspection in the manner prescribed.
8.12 That there are no other circumstances arising from the application which should be disclosed to the ZSE.
Ninth Schedule (Sections 360 and 361)
MECHANICAL SIGNATURES ON CERTIFICATES OF TITLE
9. An application for mechanical signatures on certificates of title must be made in the following form:
Zimbabwe Stock Exchange
Harare
Dear Sir or Madam
MECHANICAL SIGNATURES
TheBoardundertakesthatnomechanicalsignatureswillbe affixedtocertificatesissuedinrespectofthe securitiesorstock of the issuer unless the following conditions are complied with:
The means of affixing such signatures shall be by (here insert the method to be employed). Suitable blocks or dies bearing the facsimile signatures of the several directors and, of the secretary or transfer secretary, shall be procured at the cost of the issuer and kept respectively in the custody or under the control of the persons whose signatures they bear, or their duly authorised representatives, and in whose presence and by whose authority alone they shall be used. Each of such persons shall on each occasion on which such authority is given by him record in a register to be maintained for this purpose by the secretary the granting of such authority, its purpose and extent. A certified copy of the resolution of the Board, adopting this procedure for mechanical signatures, is enclosed. Yours faithfully CHAIRMAN.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 Tenth Schedule (Sections 258 and 360) REQUIREMENTS FOR ARTICLES OF ASSOCIATION No application for listing shall be considered until the articles of association (or other instrument constituting or defining the constitution of the applicant) (“The articles”) has been approved by the ZSE. These documents must be in English and must comply with the requirements in respect of an applicant or in respect of any of the applicant’s subsidiary companies whose securities are not sought to be separately listed. The requirements laid down are not exhaustive. The ZSE shall not allow any provisions contained in the articles which may in any way restrict free dealings in the securities, which may in the ZSE’s opinion be unreasonable or which are unlawful. There must be no provision in the applicant (issuer’s) or its subsidiary companies’ Articles that is in conflict with any provision in these rules or that prevents the enforcement of any provision in these listings rules. In the event that the Articles contain such a provision, the applicant must amend the Articles of the applicant or its subsidiaries. This does not prevent the ZSE from taking action against the relevant parties in terms of Part I of these rules. Contents of articles of association—applicants Preference securities
10.1 If there are cumulative or non-cumulative preference shares in the capital of the company, the following rights must attach
to such shares:
No further securities ranking in priority to or pari passu with the existing preference shares of any class shall be created or issued without the consent in writing of the holders of 75 per centum of the existing preference shares of such class or the sanction of a resolution of the holders of such class of preference shares passed at a separate general meeting of such holders and at which members holding in the aggregate not less than 1 or4 of the total votes of all the members holdings securities in that class entitled to vote that meeting are present in person or by proxy and the resolution has been passed by not less than 3 or4 of the total votes to which the members of that class present in person or by proxy are entitled. Unissued securities
10.2 Provision should be made in the articles that unissued equity securities shall be offered to existing shareholders pro rata
to their shareholding unless issued for the acquisition of assets. The articles may however in addition to the above provide that the shareholders in general meeting may authorise the directors to issue unissued securities or give options to subscribe for unissued securities as the directors in their discretion may think fit, provided this has been approved by the ZSE. Signing of certificates of titles
10.3 The provision of section 104 of the Companies Act [Chapter 24:03] shall constitute the ZSE requirements for the signatures
of certificates of title.
Calls on securities - foreign company
10.4 Neither the directors nor the company must be given power on the issue of securities to make any difference between the
holders of the same class of share in the amount of calls to be paid and the time of payment of such calls or in any other respect whatsoever.
10.5 Any amount paid up in advance of calls on any share shall carry interest only and shall not entitle the holder of the share
to participate in respect thereof in a dividend subsequently declared.
10.6 Provision should be made in the articles of a foreign company for the payment of calls at the branch office in Zimbabwe.
Lien upon securities
10.7 The articles must not give a company power to claim a lien on fully paid securities and the lien upon partly paid securities
must be limited to the amounts owing upon partly paid securities.
Transfer of securities
10.8 Provision must be contained in the articles for the use of the common form of transfer.
10.9 There must be no restriction on the transfer of securities.
10.10 The following provision must be made in the articles:
“Every instrument of transfer shall be left at the transfer office of the company at which it is presented for registration accompanied by the certificate of the securities to be transferred and or such other evidence as the company may require to prove the title of the transferor or his rights to transfer the securities.

S.I. 134 of 2019
All authorities to sign Transfer Deeds granted by members for the purpose of transferring securities which may be lodged, produced or exhibited with or to the company and the grantor of such authorities be taken and deemed to continue and remain in full force and effect and the company may allow the same to be acted upon until such time as express notice in writing of the revocation of the same shall have been given and lodged at the company’s transfer offices at which the authority was lodged, produced or exhibited. Even after the giving and lodging of such notices the company shall be entitled to give effect to any instruments signed under the authority to sign and certified by any officer of the company as being in order before the giving and lodging of such notice.”. Transmission clause
10.11 A provision to the effect that securities registered in the name of a deceased or insolvent shareholder shall be forfeited if
the executor fails to register them in his own name or in the name of the heir etc., when called upon by the directors to do so will not be permitted. Share warrants to bearer
10.12 Provision should not be made for the issue of a new share warrant in place of one lost unless suitable documentation is
provided to the satisfaction of the directors of the company concerned.
10.13 Where the memorandum prohibits the issue of share warrants and the articles make provision for the issue etc., thereof the
following clause should be inserted in the articles.
“Notwithstanding the provisions contained in these articles with reference to the issue of share warrants the company is prohibited from issuing share warrants unless and until the objects of the company are altered to permit the issue of share warrants.”. Commission
10.14 The articles should provide that, subject to the Act, the company may not pay commission exceeding 5per centum to any
person in consideration of his subscribing or agreeing to subscribe, whether absolutely or conditionally, for any securities of the company. Capital
10.15 Power should be contained in the articles for:
(a) increase of capital;
(b) consolidation of securities;
(c) conversion of securities into stock;
(d) sub-division of securities;
(e) cancellation of securities;
(f) reduction of capital;
(g) conversion of securities into no par value and vice versa; (h) conversion of ordinary shares into redeemable preference shares; and (i) conversion of securities of any class into securities of any other class, whether issued or not.
10.16 Provision should be made that new securities created shall be offered to the existing shareholders pro rata to their shareholding
or that new securities are only to be disposed of or dealt with as directed by a general meeting of shareholders. Subject to the listings requirements of the ZSE, the articles may however in addition to the above provide that the shareholders in general meeting may authorise the directors to issue the new securities as the directors in their discretion may think fit.
10.17 The clause in the articles dealing with the reduction of capital should not provide that capital shall be re-paid upon the
basis that it may be called up again; and
Provision should be made that in the case of any issue of a fraction of a security, that fraction may be sold for the benefit of the shareholder in such manner as the directors may determine. Borrowing powers
10.18 The article should provide that the borrowing powers of the Board are limited so that the aggregate amount at any one
time owing in respect of monies borrowed by the company and its subsidiary companies (exclusive of inter-company borrowings) shall not exceed a reasonable fixed amount which must be related to the issued and paid up capital of the company except with the consent of the company in general meeting by ordinary resolution, and that the directors will procure that the aggregate amount at any one time owing in respect of monies borrowed by the company will not without such consent exceed that same limit.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 Notice of meeting
10.19 In the articles of a foreign company provision should be made that if the notice be given by surface mail at least 30 days’
notice of a meeting shall be given to all shareholders entitled to notice if such notice is sent from the registered office of the company and at least 21 days’ notice if the notice is sent from a branch office in Zimbabwe or by air mail from the registered office of the company.
10.20 In the articles of all companies provision should be made for sending notices of meetings to the ZSE at the same time as
notices are sent to shareholders.
10.21 The articles should provide that an accidental omission to give notice of any meeting to members shall not invalidate any
resolution passed at any such meeting.
General meetings
10.22 The business of a general meeting must include power to sanction or declare dividends.
10.23 The quorum at a general meeting must be as detailed in 10.54.
Voting at general meetings
10.24 In the case of a foreign company the articlesshould make provision for depositing proxies at the branch office in Zimbabwe.
Directors
10.25 The articles of association must provide that the minimum number of directors shall be four.
10.26 The articles should provide that the appointment of a director to fill a casual vacancy or as an addition to the board must
be confirmed at the next annual general meeting.
10.27 The articles should provide that if the number of directors falls below the minimum provided in the articles the remaining
directors shall only be permitted to act for the purpose of filling vacancies or calling general meetings of shareholders.
10.28 If the articles contain a provision that directors may be employed in any other capacity in the company or as a director or
employee of a company controlled by or subsidiary to this company a further provision should be made to the effect that his or her appointment and remuneration in respect of other such office must be determined by a disinterested quorum of directors.
10.29 The articles should provide that the directors shall be paid all their travelling and other expenses properly and necessarily
incurred by them in and about the business of the company, and in attending meetings of the directors or of committees thereof, and that if any director shall be required to perform extra services or to go to reside abroad or otherwise shall be specifically occupied about the company’s business, he or she shall be entitled to receive a remuneration to be fixed by a disinterested quorum of directors which may be either in addition to or in substitution for any other remuneration.
10.30 In a new company all the directors are to retire at the first annual general meeting and at each annual general meeting of
the company one-third of the directors, or if their number is not a multiple of three, then the number nearest to but not less than one-third, shall retire from office. In the case of an existing company at least one-third of the directors shall retire at each annual general meeting. The aforesaid provisions are however, subject to the proviso that if a director is appointed a managing director or as an employee of the company in any other capacity the contract under which he or she is appointed may provide that he or she shall not, while he or she continues to hold that position or office under contract for a term of rotation be subject to retirement by such contract and he shall not in such case be taken into account in determining the rotation of retirement of directors provided that less than half of the directors may be appointed to any such position on the condition that they shall not be subject to retirement by rotation.
10.31 The period to be allowed before the date of an annual general meeting for the nomination of a new director must be such as
to give sufficient time after the receipt of the notice of the holding of the meeting for nominations to reach the company’s office from any part of Zimbabwe.
10.32 If the quorum of directors is two the chairman shall not be permitted to have a casting vote if only two directors are present
at a meeting of directors.
10.33 The directors shall be entitled to elect a chairman and deputy chairman and determine the period for which they shall hold
office. A resolution signed by directors (or their alternatives, if applicable) who are present at the time when the resolution in question is signed by the first of such directors, in Zimbabwe, whose number is a majority of the directors for the time being in office and not less than a quorum for a meeting of directors, inserted in the minute book, shall be as valid and effective as it had been passed at a meeting of directors. Any such resolution may consist of several documents, each of which may be signed by one or more directors (or their alternates, if applicable) and shall be deemed to have been passed on the date on which it was signed by the last director who signed it unless a statement to the contrary is made in that resolution. Dividends
10.34 The articles should provide that the company in general meeting or the directors may declare dividends. However, the
company in general meeting should not be able to declare a larger dividend than that declared by the directors.
10.35 It should be noted that dividends must be payable to shareholders registered as at a date subsequent to the date of declaration
or date of confirmation of the dividend whichever is the later. A period of 14 days at least should be allowed between the

S.I. 134 of 2019 date of declaration or date of confirmation of the dividend whichever is the latter, and the date of the closing of the transfer registers in respect of such dividend.
10.36 A provision to the effect that dividends which remain unclaimed for 12 years may become the property of the company
will be permitted. Monies other than dividends due to shareholders must be held in trust by the company indefinitely until lawfully claimed by the shareholder.
10.37 The articles of a foreign company may provide that the directors may retain any dividend or bonus upon which the company
has a lien and may deduct from dividends or bonus all claims or sums of money which may be due on account of calls. Annual financial statements
10.38 Provision should be made in the articles of a company incorporated in Zimbabwe for a copy of the annual financial
statements to be sent to shareholders at least 21 days before the date of the meeting at which it will be considered.
10.39 In the articles of a foreign company provision should be made that a copy of the Statement of Financial Position will be
sent to all shareholders at least 30 calendar days before the date of the meeting at which it will be considered if sent by surface mail from the registered office of the company and at least 21 calendar days before that date if sent from the branch office in Zimbabwe or by air mail from the registered office. Notices
10.40 Notices must be sent to all registered members. Notices to the holders of share warrants ,unless the conditions of issue
provide that such holders are to receive notices, shall be given by advertisement in Harare and in the town or district where the registered office of the company is situated, and if such registered office is situated outside Harare in a daily English newspaper. The articles should provide accordingly. Members registered address
10.41 A clause in the articles to the effect that members shall register an address in Zimbabwe or in some other country will be
permitted.
10.42 In the articles of a foreign company a provision that members are to register an address in the foreign country only will
not be permitted.
Advertisement of notices
10.43 In addition to the notice to be sent to all registered shareholders a provision that notice by advertisement shall be published
in Harare and in the town or district where the registered office of the company is situated, if such registered office is situated outside Harare in English in a daily newspaper will be permitted. Content of articles of association—(subsidiary companies) Unissued securities
10.44 Provision shall be made in the articles that unissued securities shall be offered to existing shareholders pro-rata to their
shareholding, unless issued for the acquisition of assets. The articles may, however, in addition to the above, provide that the shareholders in general meeting may authorise the directors to issue unissued securities and give options to subscribe for unissued securities as the directors in their discretion may think fit, provided this has been approved by the Committee. Calls on securities—foreign company
10.45 Neither the directors nor the company must be given power on the issue of securities to make any difference between the
holders of the same class of share in the amount of calls to be paid and the time of payment of such calls. Lien upon securities—foreign company
10.46 The articles must not give a company power to claim a lien on fully paid securities and the lien upon partly paid securities
must be limited to amounts owing upon partly paid securities.
Transfer of securities
10.47 Provision must be contained in the articles for the use of the common form of transfer.
10.48 The following provision must be made in the articles:
“Every instrument of transfer shall be left at the transfer office of the company at which it is presented for registration accompanied by the certificate of the securities so transferred or such other evidence as the company may require, to prove the title of the transferor or his rights to transfer the securities. All authorities to sign transfer deeds granted by members for the purpose of transferring securities, which may be lodged, produced or exhibited with or to the company at any of its proper offices shall, as between the company and the grantor of such authorities be taken and deemed to continue and remain in full force and effect and the company may allow the same to be acted upon until such time as express notice in writing of the revocation of the same shall have been given and lodged at the company’s transfer offices at which the authority was lodged, produced or exhibited.

Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019 Even after the giving and lodging of such notice the company shall be entitled to give effect to any instrument signed under the authority to sign and certified by any office of the company as being in order before the giving and lodging of such notices.”. Transmission clause
10.49 A provision to the effect that securities registered in the name of a deceased or insolvent shareholder shall be forfeited if
the executor fails to register them in his own name or in the name of the heir etc., when called upon by the directors to do so will not be permitted. Share warrants to bearer
10.50 Provision should not be made for the issue of a new share warrant in place of one lost unless suitable documentation is
provided to the satisfaction of the company concerned.
10.51 Where the memorandum prohibits the issue of share warrants and the articles make provision for the issue etc., thereof the
following clause should be inserted in the articles:
“Notwithstanding the provisions contained in these articles with reference to the issue of share warrants the company is prohibited from issuing share warrants unless and until the objects of the company are altered to permit the issue of share warrants .”. Capital
10.52 Provision should be made that new securities created shall be offered to existing shareholders pro-rata to their shareholding
or that new securities are only to be disposed of or dealt with as directed by a general meeting of shareholders. The articles may, however, in addition to the above provide that the shareholders in general meeting may authorise the directors to dispose of the new securities as the directors in their discretion may think fit, subject to the provisions of the Act and to the listings requirements of the ZSE. Borrowing powers
10.53 That the directors may, from time to time at their discretion raise or borrow to secure the payment of any sum or sums of
money for the purposes of the company, provided that the total amount owing by the company in respect of monies so raised, borrowed or secured shall not exceed the amount authorised by its listed holding company. Quorum at general meetings
10.54 The articles must provide that quorum at a general meeting and at an adjourned or postponed meeting shall be at least two
members, present in person or by proxy, of whom one member shall be the representative of the holding company, or if a company is a wholly owned subsidiary the representative of the holding company shall suffice. Directors
10.55 The articles should provide that the appointment of a director to fill a casual vacancy or as an addition to the board must
be confirmed at the next annual general meeting.
10.56 The articles should provide that if the number of directors falls below the minimum provided in the articles, the remaining
directors shall only be permitted to act for the purpose of filling vacancies or calling general meetings of shareholders.
10.57 If the articles contain a provision that a director may be employed in any other capacity in the company or as a director
or employee of a controlled or subsidiary company, a further provision should be made to the effect that his appointment and remuneration in respect of such other office must be determined by a disinterested quorum.
10.58 The period to be allowed before the date of an annual general meeting for the nomination of a new director must be such as
to give sufficient time after the receipt of the notice of the holding of the meeting for nominations to reach the company’s office from any part of Zimbabwe.
10.59 If the quorum of directors is two the chairperson shall not be permitted to have a casting vote if only two directors are
present at a meeting of directors.
10.60 The directors shall be entitled to elect a chairperson and a deputy chairperson as well as determine the period for which
they shall hold office.
10.61 A resolution signed by all directors (or their alternates, if applicable) inserted in the minute book, shall be as valid and
effective as if it had been passed at a meeting of directors. Any such resolution may consist of several documents, each of which may be signed by one or more directors (or their alternates, if applicable) and shall be deemed to have been passed on the date on which it was signed by the last director who signed it (unless a statement to the contrary is made in that resolution).
10.62 Life directorships are not permissible.
Dividends
10.63 The articles should provide that the company in general meeting or the directors may declare dividends. However, the
company in general meeting should not be able to declare a larger dividend than that declared by the directors.

S.I. 134 of 2019
10.64 A provision to the effect that dividends which remain unclaimed for 12 years may become the property of the company
will be permitted. Monies other than dividends due to shareholders must be held in trust by the company indefinitely until lawfully claimed by the shareholder.
10.65 The articles of a foreign company may provide that the directors may retain any dividend or bonus upon which the company
has a lien and may deduct from dividends or bonus all claims or sums of money which may be due on account of calls. Notices
10.66 Notices must be sent to all registered members. Notices to the holders of share warrants unless the conditions of issue
provide that such holders are to receive notices, shall be given by advertising in Harare and in the town or district where the registered office of the company is situated, if such registered office is situated outside Harare, in a daily newspaper in English and one other official language. The articles should provide accordingly. Members’ registered addresses
10.67 A clause in the articles to the effect that members shall register an address in Zimbabwe or in some other country will be
permitted.
Contents of Articles for issuers
10.68 The following provisions must be included in the Articles of issuers, unless otherwise indicated below:
Unissued securities
10.69 Unissued equity securities shall be offered to existing shareholders, pro rata to their shareholdings, unless such securities
must be issued for an acquisition of assets. However, the Articles must provide that shareholders in general meeting may authorise the directors to issue unissued securities, and or grant options to subscribe for unissued securities, as the directors in their discretion deem fit, provided that such corporate action(s) has been approved by the ZSE and are subject to these Listings Requirements. Transferability of securities and transfer of securities
10.70 (a) Securities for which listing is sought must be fully paid up and freely transferable, unless otherwise required by statute.
The ZSE will not list shares that are not fully paid for upon listing.
(b) All authorities to sign transfer deeds granted by holders of securities for the purpose of transferring securities that may be lodged, produced or exhibited with or to the company at any of its transfer offices shall, as between the company and the grantor of such authorities, be taken and deemed to continue and remain in full force and effect, and the company may allow the same to be acted upon until such time as express notice in writing of the revocation of the same shall have been given and lodged at the company’s transfer offices at which the authority was lodged, produced or exhibited. Even after the giving and lodging of such notices, the company shall be entitled to give effect to any instruments signed under the authority to sign, and certified by any officer of the company, as being in order before the giving and lodging of such notice. Ratification of ultra vires acts
10.71 The proposal of any resolution to shareholders in terms of the Act must be prohibited in the event that such a resolution
would lead to the ratification of an act that is contrary to these rules, unless otherwise agreed with the ZSE. Rules
10.72 The directors’ power to make, amend or appeal rules as contemplated in the Act must be prohibited.
Preferences, rights, limitations and other share terms
10.73 (a) Securities in each class for which listing is applied must rank pari passu in respect of all rights. It must be noted that
a statement that “securities in each class rank pari passu” shall be understood to have the meaning attributed thereto in terms of section 45(1) of these rules. (b) Every holder of an ordinary share must have one vote in respect of each share that he holds and must be entitled to vote at every general or annual general meeting, whether in person or by proxy. (c) Any amendment to the Articles must be approved by a special resolution of ordinary shareholders, save where such an amendment is ordered by a court in terms of sections 16(1)(a) and 16(4) of the Companies Act [Chapter 24:03]. Amendment, for the avoidance of doubt, shall include, but shall not be limited to:
(i) the creation of any class of shares;
(ii) the variation of any preferences, rights, limitations and other terms attaching to any class of shares; (iii) the conversion of one class of shares into one or more other classes; (iv) an increase in the number of securities of a class; (v) a consolidation of securities; (vi) a sub-division of securities; or (vii) the change of the name of the company;