The Financial Services Board’s (FSB) decision to halt over-the-counter trading of BEE scheme shares is likely to hinder initiatives to help previously disadvantaged individuals build wealth through buying equity in blue chip companies. By 31 March 2015 any organisation conducting transactions over the counter will face the might of the law.
With the proliferation of get-rich-quick Ponzi schemes, the FSB has decided to tighten regulations governing the operations of BEE schemes. Thus far, schemes have two options available: list on a stock exchange that’s already regulated and licensed or apply for an exchange licence.
One of the institutions likely to be affected by the development is MTN’s BEE scheme Zakhele, which is now desperately looking for a trading platform. Zakhele owns 4% of MTN’s issued share capital. Tamela Holdings runs the platform on behalf of Zakhele.
Chairperson of MTN Zakhele, Thulani Gcabashe, foresees the new platforms posing a barrier to trading.
“In our scheme we have investors who are able to speak in a variety of South African languages with the call centre where they can place their buy or sell order, and that is not the case when you go the route of an institutional stockbroker.
“Through the website they are able to directly place orders, but on the JSE you can’t directly place orders – you have to go through a stockbroker,” he said.
