Stock Exchange of Mauritius

From Wikipedia, the free encyclopedia

Jump to navigationJump to search
Stock Exchange of Mauritius
Bourse de Maurice
SME Logo
Type Stock exchange
Location Port Louis, Mauritius
Coordinates 20�9'54?S 57�30'20?E
Founded 1989
Owner Government of Mauritius
Key people Chairman � Gaetan Lan Hun Kuen
Deputy Chairman � Raj Tapesar
Director � Sunil Benimadhu
Currency Mauritian rupee
No. of listings 88
Market cap US$6.8 billion
Indices SEMDEX
SEMTRI
SEM-7
DEMEX
DEMTRI
Website Stock Exchange of Mauritius
The Stock Exchange of Mauritius (SEM) (French: Bourse de Maurice;
Hindi: ?????? ?? ????? ????????; Chinese: ?????????) is an organization responsible
for the operation of Mauritius's primary stock exchange located at Port Louis. The
SEM operates two markets: the Official Market and the Development & Enterprise
Market (DEM). There are 40 companies listed on the Official Market representing a
Market Capitalization of nearly US$5.3 billion, the DEM presently has 48 companies
listed with a market capitalisation of nearly US$1.5 billion as at 31 July 2012.
SEM is one of the leading Exchanges in Africa and a member of the World Federation
of Exchanges.[1]

Contents
1 Overview
2 History
3 See also
4 References
5 External links
Overview
[icon]
This section needs expansion. You can help by adding to it. (August 2012)
The SEM's "Official Market" has three market indices: SEMDEX, SEMTRI and SEM-10.

History
The Stock Exchange Act 1988 established a small but thriving exchange which is run
by the Stock Exchange of Mauritius Ltd (SEM), a private limited company. The act
also established the Stock Exchange Commission (SEC), which controls and supervises
stock exchange operations. Two markets operated: the Official List and the Over-
The-Counter Market (for unlisted shares). There are around 40 companies listed on
the Official List, and around eighty companies quoted in the Over-The-Counter
Market. 10 companies are quoted for their debentures. The exchange has classified
these companies into seven categories, namely: banks and insurance, industry,
investments, sugar, commerce, leisure and hotels and transport. There are also two
dual listed funds quoted both on the London Stock Exchange and the Stock Exchange
of Mauritius.

The SEMDEX - the all shares index - reflects capitalisation based on each listed
stock which is weighted according to its shares in the total market. In its
computation, the current value of SEMDEX is expressed in relation to a base period,
which was chosen as of July 5, 1989, with an index value of 100.

Trading takes place five days a week and is conducted through an open outcry,
order-driven and single-price auction system. Each share (excluding foreign shares)
has a maximum +/- 15% price limit per trading session. A 1% brokerage commission is
charged by stockbroking companies. There is no tax on dividends or capital gains.

Major developments took place through the establishment of a new electronic

clearing and settlement system and the introduction of daily trading (at the end of
1997). Future planned developments include the introduction of a new electronic
trading system and the listing of new financial products on the stock market. The
SEM was recently promoted from the status of corresponding exchange to that of
affiliated securities markets within the Fed�ration Internationale des Bourses de
Valeurs (FIBV) and it is also a founding member of the African Stock Exchange
Association (ASEA).

The SEM was opened to foreign investors in 1994 following the abolition of exchange
controls. Foreign investors do not need approval to trade shares, unless the
investment is for the purpose of legal or management control of a Mauritian
company. The only restriction is that foreign investors cannot have an individual
holding of more than 15% in a sugar company. There is no control on currency
repatriation, and the currencies are fully convertible and market determined.
Settlements can be made in a foreign currency and foreign currency accounts can be
opened in Mauritius. There are no capital gains taxes and no withholding tax on
dividends procured from trading in officially listed companies.

A major development of 1998 was the implementation of a central depository system,

in which all listed companies are registered. This system allows delivery versus
payment (DVP) on a T+3 day rotating basis. The establishment of a clearinghouse,
through the Bank of Mauritius, provided for a guarantee fund, which incorporates
measures for securities and fund settlement failure. The exchange, in collaboration
with international advisers, drafted new listing and reporting rules to ensure
greater transparency for investors. These rules came into force during the first
half of 1998.

See also
Bio crude oil