BSE commercialisation gets Parly nod

Tsaone Basimanebotlhe | Wednesday December 17, 2014 20:05

 

The bill was adopted last Friday, paving way for the exchange to transform into a commercial entity in line with international trends.

 “Part II, of the bill allows the Botswana Stock Exchange to apply to the registrar of companies under section while part IV of the bill deals with matters related to the continuation of the Botswana Stock Exchange Security Fund under the new name of Investor Compensation Fund, and the transitional arrangements,” said Finance Minister Kenneth Matambo. He also said this fund would provide compensation to investors who may suffer loss due to the dishonesty or liquidation of a stockbroker.

In addition, Matambo said the transitional arrangements provide for the continuation of the assets and liabilities of the exchange, after incorporation.

He said the Botswana Stock Exchange was established under the Botswana Stock Exchange Act of 1995 and operates as an association of brokers, which was similar to other exchanges at the time. He further told parliament that exchanges worldwide have now transformed into commercial entitles on the realisation that exchanges exist for the benefit of a variety of stakeholders other than brokers.

“The incorporation of the Botswana Stock Exchange will provide it with the flexibility to operate on a more commercial basis and enter into strategic alliances, as well as to take advantage of the opportunities for development of the capital markets, which are provided for in the securities act 2014.” The BSE profit for the 2013 financial fell to 1P0.4 million from P11.1 million in the periods year.

Meanwhile, Parliament has also approved the Supplementary Estimates Development of Expenditure from the consolidated and Development Funds.