Harare — ISB Securities yesterday traded on the Zimbabwe Stock Exchange in defiance of the decision by the Securities Commission to stop handling any licensable securities activities on the bourse.

The commission, which regulates the activities of the stock market last week, suspended the securities firm for violating its regulations.

The firm carried on with business as usual despite the suspension.

"They were trading today (yesterday)," said one stockbroker. "It was like they are not on suspension."

Efforts to get a comment from ISB managing director Mr Geoff Mhlanga proved fruitless.

The ZSE regulatory body said ISB and its managing director were suspended for not complying with requirements to submit returns and for denying SEC inspectors entry to ISB company offices.

In addition, the securities firm was suspended for refusing appointed public accountants and auditors, KPMG, entry to its offices last week.

The commission said this was done in accordance with Section 49(1) (a) of the Securities Act Chapter 24:25 as defined in Section 2 (1).

SEC said it had suspended ISB after an investigation into the conduct of ISB and Mr Mhlanga in the management of trust funds.

The conduct, said SEC, in discord with section 50 and 51 of the Securities Act.

SEC chief executive Mr Alban Chirume yesterday said the commission would establish whether ISB had actually conducted any deals on the ZSE.

"If they were on the market, then we will take action," said Mr Chirume. No comment could be obtained from ZSE chief executive Mr Emmanuel Munyukwi.

It is however understood that the Finance Ministry was panning some interventions to plug some loopholes that were causing a discord between SEC, the stock market and brokers.

Two weeks ago, the ZSE directed stockbrokers not to remit about US$2,3 million to the Securities Commission collected from investors since May.

SEC had instructed stockbrokers to remit the funds collected, but Mr Munyukwi raised the stop sign, directing stockbrokers to continue collecting the levy but "not to remit" any funds to the commission.