The Stock Exchange of Mauritius (SEM) (); is an organization responsible for the operation of

Mauritius Mauritius, officially the Republic of Mauritius, is an island country in the Indian Ocean, about off the southeastern coast of East Africa, east of Madagascar. It includes the main island (also called Mauritius), as well as Rodrigues, Ag ...

's primary

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for ...

located at

Port Louis Port Louis (, ; or , ) is the capital and most populous city of Mauritius, mainly located in the Port Louis District, with a small western part in the Black River District. Port Louis is the country's financial and political centre. It is admi ...

. 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 Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by ...

of nearly 5.3 billion, the DEM presently has 48 companies listed with a market capitalisation of nearly 1.5 billion as at 31 July 2012. SEM is one of the leading Exchanges in

Africa Africa is the world's second-largest and second-most populous continent after Asia. At about 30.3 million km2 (11.7 million square miles) including adjacent islands, it covers 20% of Earth's land area and 6% of its total surfac ...

and a member of the

World Federation of Exchanges The World Federation of Exchanges (WFE), formerly the ''Federation Internationale des Bourses de Valeurs'' (FIBV), or International Federation of Stock Exchanges, is the trade association of publicly regulated stock, futures, and options exchan ...

Overview

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 The London Stock Exchange (LSE) is a stock exchange based in London, England. the total market value of all companies trading on the LSE stood at US$3.42 trillion. Its current premises are situated in Paternoster Square close to St Paul's Cath ...

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 Open outcry is a method of communication between professionals on a stock exchange or futures exchange, typically on a trading floor. It involves shouting and the use of Hand signaling (stock market), hand signals to transfer information pri ...

, order-driven and single-price auction system. Each share (excluding foreign shares) has a maximum +/- 20% price limit per trading session. A maximum of 1.25% are applicable to transactions on the market. There is no tax on dividends (apart from for certain Mauritian residents) 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 Fedération 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 tax A capital gains tax (CGT) is the tax on profits realized on the sale of a non-inventory asset. The most common capital gains are realized from the sale of stocks, bonds, precious metals, real estate, and property. In South Africa, capital g ...

es and no

withholding tax Tax withholding, also known as tax retention, pay-as-you-earn tax or tax deduction at source, is income tax paid to the government by the payer of the income rather than by the recipient of the income. The tax is thus withheld or deducted from the ...

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 The Bank of Mauritius () is the central bank of the Republic of Mauritius. It was established in September 1967 as the central bank of Mauritius. It was modelled on the Bank of England and was, in effect, set up with the assistance of senior off ...

, 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.

References

External links

Official Website of SEM

SEM List of Companies

African Securities Exchanges Association
{{Economy of Mauritius

Financial services companies of Mauritius Financial services companies established in 1989 Economy of Mauritius Companies based in Port Louis

Overview

History

See also

References

External links