Categories: Stories

Supreme Court upholds REMO suspensions

The Supreme Court has upheld the suspension of stock-broking firm, Remo but reduced its suspension by six months from the initial five years, court papers have shown.

The firm’s managing director Mohamed Mahmed, who also had his securities dealers’ license cancelled by the Securities Commission of Zimbabwe (SECZ) however had his appeal dismissed while Rezana Ebrahim, the firm’s compliance officer and John Motsi, a registered securities dealer had their sentences suspended.

SECZ cancelled Remo’s broker’s license, suspended Mahmed, Ebrahim and Motsi in 2012 after Remo failed to recover shares it had pledged as security after borrowing close to $2 million from Interfin Securities.

Remo then sought the intervention of the Zimbabwe Stock Exchange to pressure Interfin to return the shares, which prompted an investigation into the issue.

Proctor and Associates, which was tasked by SECZ to carry out the investigation, established  that Remo did not record shares that were in question in the nominees register as required by the Securities Act.

Investigators also said Remo Investments engaged in non-permissible activities in the money market, leading to its suspension.

The Administrative Court in 2012 upheld the decision and Remo, Mahmed, Ebrahim and Motsi launched a joint appeal against the judgment to the Supreme Court.

“The appeal succeeds in part to the extent that the sanction imposed on REMO is reduced and, in respect of Ebrahim and Motsi, is set aside entirely. I find no justification for the actions of the Commission against Ebrahim and Motsi,” read part of the judgment delivered by the Supreme Court bench made up of justices Garwe, Gowora and Patel.

“The appeal by the first applicant (REMO) is allowed to the extent that the conviction on a charge of contravening section 50(1) of the Act is set aside and consequent thereto, the period of cancelation is reduced to four years and six months.”- The Source

(89 VIEWS)

This post was last modified on December 8, 2014 5:20 am

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024

Zimbabwe government biggest loser when there is a discrepancy in the exchange rate

The government is the biggest loser when there is a discrepancy between the official exchange…

October 10, 2024