Finance Minister Tendai Biti has said Government is worried by the state of affairs at the Zimbabwe Stock Exchange and is pushing for amendments to the Securities Act, which would compel the exchange to demutualise.
"We are not happy with the board and the committee running the ZSE which is comprised of brokers who are both the referees and the players," said Minister Biti.
"The ZSE has become a "Mafia operation". No one knows who the owners are. We are going to push for this - whether you like it or not.
"We are pushing for major amendments to the Securities Act that will enforce demutualisation of all capital players."
Demutualisation refers to the transformation of an organisation, normally a club or society, into a commercial entity or a company owned by shareholders.
For the stock exchange, it is critical to prevent cartels of members from dictating the affairs of the bourse, which will result in a credibility crisis. Once the bourse lacks confidence it will struggle to attract investors.
Minister Biti, the guest of honour at the listing of TN Bank, said the amendments had been finalised and would be presented to Cabinet soon.
He said there was also need for a Central Securities Depository that would improve the operations of the capital market to match international standards.
Last week, the Securities Commission of Zimbabwe said it would soon be carrying out an Initial Public Offer for the Zimbabwe Stock Exchange.
SECZ chief executive Mr Tafadzwa Chinamo said the restructuring process would see the ZSE getting a partner to expedite its capacity.
"What most people do not know is that the ZSE is a statutory body, but it has not been treated as such," he said.
"The IPO is part of the demutualisation of the bourse. In doing so, brokers will obviously get a stake, while at the same time we are seeking a partner to come in and help it modernise quicker."
Analysts say the system currently in use is inefficient and open to abuse. Moreover, it is expected that the introduction of real-time trading will allow for real-time clearing and settlement of trades.