The Stock Exchange of Mauritius (SEM) has made a number of changes to its regulatory framework with a view to enhancing its international competitiveness. We have highlighted some of those below.
1. Fast Track Listing Process for International Issuers.
With a view to assisting international issuers with secondary listings on the SEM, the listing rules have been amended to provide for additional flexibility for such issuers. A fast track listing route is now available for issuers who have a primary listing on the Australian, Johannesburg, London, NYSE, Euronext or the Toronto Exchange. Such issuers can now submit the same listing application documents approved by the primary exchange. This eliminates time cost and management constraints to do a secondary listing. Further changes confirm that the primary exchange takes precedence regarding post-listing obligations.
2. Capital Raising Simplified
Full listing is now no longer required each time an issuer wishes to raise capital. Instead such listing are issued for a one year period during which time an information note can be used for listing.
3. Publication of Financial Statements
Those companies who are secondary listed on the SEM may file their financial statements on the same basis and frequency as where they are primarily listed.
4. ETF’s Reduced Fees
These fees have now been reduced to align with those fees for corporate bonds and debentures. This reduced the fees from 0.35% to 0.1%.
5. GBC2 May Invest In Listed Securities
The FSA has been amended to remove the restriction on GBC2 companies investing in listed securities.
Commentary
The amendments are welcome indeed in moving the SEM into its rightful place as a well-regulated international exchange. We would, however, welcome further changes being considered. In our view these should include:
A move to only reporting on a bi-annual basis as opposed to a quarterly basis;
Ensuring that on a rights offer that full listing particulars are not required.
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