In 1997, the Stock Exchange of Mauritius established a Central Depository and Settlement System (CDS) to provide centralised depository, clearing and settlement services for equities and debts. The setting up of the CDS brought about prompt and efficient clearing and settlement of trades while at the same time reducing some of the inherent risks in the process. The CDS has allowed the Mauritian stock market to meet international standards on clearing and settlement, namely the G3 Recommendations and the CPS/IOSCO’s Recommendations for Securities Settlement Systems.

The CDS provides its services within an online computer system, with participants having direct access to the system. Trades are settled within a rolling T+3 settlement cycle on a strict DvP basis. The final and irrevocable transfer of funds occurs through the Central Bank with the same-day funds on the settlement date.

New Listing Rules

The new listing rules governing the companies listed on the Official Market were introduced on February 1, 2001. These rules address the admission to listing, the continuing obligations of listing, the enforcement of those obligations and suspension and withdrawal from the Official List of the Stock Exchange and aimed at ensuring that the business of the Stock Exchange is carried on with due regard to the investor’s interests. These rules derive from the Listing Rules of the London Stock Exchange and the JSE Securities Exchange (South Africa) and reflect modern and internationally accepted procedures and standards. The Listing Rules of the SEM have been harmonised with the rules of various bourses in the SADC region and members of the African Stock Exchange Association (ASEA). This harmonisation process is expected over time to attract more foreign capital through cross-border investments and dual listings of companies on various bourses within the SADC.

The CDS adheres to the following principles or objectives, namely:

  • To ensure conformance with international best practice.
  • To increase disclosure levels.
  • To allow for greater flexibility in the application of the Listing Rules wherever appropriate.
  • To minimise duplication or overlap between the Listing Rules and other regulation.
  • To reflect amendments in legislation and changes in the corporate environment.
  • To promote and reinforce investor confidence.