How MTNZakhele Trading Platform Works FAQS

When will the trading begin?

The MTN Zakhele board has promised to launch the trading platform on the 25th of November 2013

What is trading?

It is process and platform that allows qualifying people to buy and sell MTN Zakhele shares.

Who qualifies to buy or sell shares?

Black people who are registered in the MTN Zakhele trading platform. See further description of black people here.

How do I register?

You have to fill a registration form and send it to MTN Zakhele. The form can be downloaded from mtnzakhele.co.za. Or you can contact MTN Zakhele at 083 123 6869

I bought MTN Zakhele shares in 2010, do I need to register?

Yes you need to register to be able to trade buy/or sell in the trading platform.

My details (contact, name, address etc.) have changed, what do I do?

If you have access to the interne go to mtnzakhele.co.za. where you will find a Change of Detail Form which must be filled and submitted to MTN Zakhele. Or you can contact MTN Zakhele at 083 123 6869

MTN Zakhele does state that: “The Change of Details form must be accompanied by the following supporting documents, for details which have changed:

  • Certified copy of South African ID Document
  • Bank statement not older than 3 months (not internet statements) stamped by your Bank; or signed and stamped letter from your bank confirming banking details
  • Bank statement not older than 3 months (not internet statements) stamped by your Bank; or signed and stamped letter from your bank confirming banking details

Once your updated information has been received and verified, you will receive an SMS inviting you to register on the MTN Zakhele Share Trading Platform through the website or Call Centre.

Additional documents are required if the shareholder is a minor or is represented by another person.”

I was busy and could not attend the MTN Zakhele meeting in my area and therefore I have not registered.

You can still get the registration form and send it to MTN Zakhele. The form can be downloaded from mtnzakhele.co.za. Or you can contact MTN Zakhele at 083 123 6869

When is the registration closing date? Will I be able to register after the 25th of November?

The registration process will continue even after the start of trading on the 25th of November. Remember that the MTN Zakhele scheme has another three years to run. In this three trading will continue until directors communicate otherwise and towards the maturity date of the scheme being November 2018.

 I am registered. How do I now trade (buy or sell) shares?

On the 25th of November when the trading platform opens you will be allowed to trade your shares online or via the call centre.

The process of trading, according to MTN Zakhele, is as follows:

For Buyers

“Before you can buy shares, you need to first deposit money into the MTN Zakhele Bank Account.

  • Deposit cash or make an electronic funds transfer into the MTN Zakhele bank account. No cheques are allowed. The maximum cash that may be deposited is R24,999.
  • Use your ID number (individuals) or shareholder number (groups) as the reference number in order for the funds to be correctly allocated to your trading account
  • It can take up to 3 days for any funds deposited into the MTN Zakhele bank account to reflect in your trading account
  • You will receive SMS confirmation once funds reflect in your trading account

You can now place your buy order using the website www.mtnz.co.za or Call Centre as follows:

  • Indicate the number of shares you wish to buy;
  • The price per share you are willing to pay for the shares.
  • How long you want your order to be valid for – maximum of 90 days
  • Once your shares have been bought you will receive an sms confirmation.”

For Sellers

  • Log in using your ID number (individuals) or shareholder number and authorised representative ID number (groups) or provide same to the Call Centre agent
  • Indicate the number of shares you want to sell.
  • Indicate the price at which you wish to sell your shares.
  • How long you want your order to be valid for (maximum 90 days)
  • Once your shares have been sold you will receive an SMS confirmation.
  • The cash from the sale of your shares will be deposited into your bank account with 5 business days from the date of sale.

What if my sell or buy order is not matched?
Answer for For Sellers: “If your order is not matched by the end of the time you chose, your order will lapse and the shares will remain yours.”

Answer For Buyers: If your order is not matched by the end of the time you chose, your order will lapse and you will have to make a new one if you still want to buy. Remember this is a willing buyer willing seller process. Your order is likely to be matched if hovers close to the ruling price.

What is the ruling price?

It is the level at which most sellers and buyers settle at.

I invested R2000 how much am I likely to get if I sell all my shares?

R2000 gave you gave you about 100 MTN Zakhele shares. If you sell all your shares, you will get 100 x the price at which you sold each share minus transactional costs.

What are transactional costs?

MTN Zakhele states that “Both the buyer and the seller must pay a transaction fee to us. The minimum transaction fee is R60 or 0.75% of a matched value (whichever is higher).

The fees charged are for management, maintenance and support services related to the MTN Zakhele Share Trading Platform.

Buy trades are also charged a Securities Transfer Tax (STT) equating to 0.25% of the executed trade value, unless the law states that no STT is payable for a particular transaction.”

At what price must I sell?

MTN Zakhele answer is most suitable: “MTN Zakhele and its agents are not registered brokers and cannot provide investment advice (This applies to ujuh.co.za). You should seek investment advice from a financial advisor or broker in this regard. We merely facilitate the trading process. However, shareholders have access to the following information on the MTN Zakhele website or via the Call Centre to help with price setting:

  • A history of the last 20 trades and the prices at which the shares were traded
  • The 5 lowest prices that sellers are prepared to sell their shares at and the number of shares
  • The 5 highest prices that buyers are prepared to pay for shares and the number of shares”

How many MTN Zakhele shares can I buy?

MTN Zakhele says “There is no limit on the amount of MTN Zakhele shares you can buy. The Black Share Transfer Committee (known as the BSTC) may investigate or review any trade, for example trades of shares above a certain amount and may refuse to allow certain transfers. The BSTC will only do what is allowed in terms of the Relationship Agreement between MTN Zakhele, MTN and each shareholder of MTN Zakhele, dated 12 July 2010 and the memorandum of incorporation of MTN Zakhele.”

This feature was compiled by ujuh.co.za after being inundated by zillions of questions about how the MTN Trading Platform will work. In many cases we have responded to readers in line with our first duty. Our first duty is to direct readers with questions to MTN Zakhele official channels being mtnzakhele.co.za, mtnz.co.za or the call centre at 083 123 6869. But the questions have kept coming.

Here we have taken the questions which best represent all the other questions we have received. We have also used MTN Zakhele’s Frequently Asked Questions (FAQS) for this feature. It is important to note that this is a voluntary act on our part. We are not an agent of MTN Zakhele. It is even more important to note that MTN Zakhele does not operate through some agencies outside the Link Market Services which is their transfer secretary. As such do not be lured into dealing with other people who claim to be representing MTN Zakhele. Do not submit sensitive information online, as some readers have done here, unless you are absolutely sure that you are dealing directly with MTN Zakhele or Link Market Services.

news@ujuh.co.za

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