Sponsoring Broker Services

 

In terms of section 2 of SI 134 of 2019 a sponsoring broker means a member of the ZSE registered pursuant to the requirements of section 18. Securities dealers are one of the professionals specifically singled out by the Act to conduct the business of Sponsoring brokers. Besides to assist issuers with applications for listing which require the production of listing particulars or other relevant documents, an issuer must appoint a sponsoring broker in certain circumstances and such sponsoring broker must make an undertaking to the ZSE that he or she accepts the responsibilities imposed by these rules. In terms of section 19(1) of the rules, an issuer must appoint a sponsoring broker when.

1. the issuer makes an application for listing which requires the production of listing particulars; or
2. 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
3. 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
4. a sponsoring broker is required by these rules to report to the ZSE in relation to any transaction or matter; or
5. the ZSE requires the issuer to do so.