We have been inundated with questions about the MTN Zakhele scheme which has reached a critical stage this month. The three years lock in period expires on the 24th of November 2013. MTN Zakhele has prepared a restricted trading platform and has called for all who want to use this platform to register. The trading, buying and selling, is set to commence on the 25th of November 2013.
To the many questions we have received, we have responded in line with our first duty. mtnz.co.za is the best place to have your questions answered or use the call centre line: 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 used MTN Zakhele’s Frequently Asked Questions (FAQS) feature to help you dear reader. 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 sure that you are dealing directly with MTN Zakhele or Link Market Services.
Here follows our adapted FAQS mixed with NO NO’s in this game.
I want to sell (or buy) MTN Zakhele shares how do I register?
If you are comfortable with the internet, go to mtnz.co.za and you will find information on how to register online. You can also be assisted via MTN Zakhele call centre which is at 083 123 6869.
Once you are registered, you will be able to trade your shares online or via the call centre.
I can’t make it to the registration area at the allocated date but I need to sell my shares. What do I do?
First see this piece: MTN Zakhele scheme opens up for new investors. It has dates and places where MTN Zakhele registration and education sessions are scheduled to take place across the country. If the schedule next to you has passed, call MTN Zakhele at 083 123 6869, they will assist you.
I registered and invested into MTN Zakhele in 2010. Do I also need to register?
Yes you do need to register if you want to trade in your shares. Even if you are not going to trade in the near future, once you are registered you will be in the position to buy or sell in the future. Remember the scheme has a six years life span.
Please register me for MTNZ share. Here are my details… (Some readers provided us with their ID numbers, addresses, phone numbers and bank account numbers).
Don’t do this here or in any other platform, other than the dedicated MTN Zakhele platform. This is dangerous and exposes you to criminal activity.
My details have changed; bank account, phone number, name, address, etc.
This extract from mtnz.co.za should help:
“If any of your existing personal details are incorrect or have changed, you will need to complete a Change of Details form, which can be downloaded from the website www.mtnz.co.za. You may also call 083 123 6869, where an agent will assist you.
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
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 invested R3000 into MTN Zakhele in 2010. How much do I stand to get if I sell?
According to information on our disposal, this investment has performed very well (See this piece). But there is no telling now where the shares will trade on November 25 and onwards. The price at which you will be able to sell is a function of the limited over the counter market. Like any other normal trade, this particular platform operates on a willing seller willing buyer basis. This means you will be able to sell your shares at a price that rules the limited market at a particular point in time. The trading will take form of a bidding process. You will have an opportunity to name a price at which you want to sell or buy, off course within the limits of this market. Your price must be matched by a buyer or seller. If you have a match, the sale goes through. MTN Zakhele will organise this match and handle the settlement. There is a fee applicable to the trading. “If your order is not matched by the end of the time you chose, your order will lapse and the shares will remain yours”.
Who qualifies to register?
MTN Zakhele is a BBBEE investment scheme. It was designed to benefit only black people. Here is a helpful extract from MTNZ FAQS:
“Only Black People and Black Groups are eligible to buy MTN Zakhele shares
- Black People are: African, Coloured, Chinese or Indian persons who are natural persons and who are either:
(a) citizens of the Republic by birth or descent;
(b) citizens of the Republic by naturalisation before 27 April 1994; or
(c) citizens of the Republic on or after 27 April 1994 who, but for the Apartheid policy in place prior to that date, would have been entitled to acquire citizenship by naturalisation prior to that date.
- Black Groups (“Black Groups” as more fully defined in the prospectus issued by MTN Zakhele in August 2010), which are made up of Black Companies and Other Black Entities:
- Black company – a company incorporated in accordance with the laws of South Africa, in which black people own or control more than 50% of the ordinary shares or other equity interest of the company, on an effective flow-through basis (excludes measurement utilising the modified flow-through principle)
- Other Black Entities – a vesting trust; a broad-based ownership scheme and an unincorporated entity or association, including a partnership, joint venture, syndicate or stokvel, which is owned or controlled by a majority of black people.”
Should I sell or hold on to my shares
This question is better handled by a qualified investment professional. This piece may help your decision. MTN Zakhele: Where there is a will there is a way
How will the trading platform work?
We are preparing a separate feature for this question.