Securities Market Overview
The Mauritian securities market is governed by the Securities Act 2005 and regulated by the Financial Services Commission (FSC). There are two securities exchanges in Mauritius: the Stock Exchange of Mauritius (SEM), and the Bourse Africa (BA). The former specialises on equity and fixed income securities, whilst the latter specialises in cash settlement derivatives.
The SEM is still a 'traditional' market whereby sellers cannot 'short sell' (i.e. sell securities that they do not yet own) and buyers have to take delivery of securities that they purchase. The SEM allows trading in mulitple classes of securities: equity, fixed income and exchange traded funds (ETFs). Equities are traded on two separate boards: the 'Official List' and the 'Development and Enterprise Market' (DEM). The difference between the two lies principally in the minimum free-float and number of shareholder thresholds. Fixed Income securities are also traded on multiple boards: one for 'Official List' debentures, one for 'DEM' debentures, and final board for Government of Mauritius Treasury Bills. ETFs are all traded on the same board at equities.
Structure of the Mauritian Securities Market (as at 1st June 2015) :
The 90 quoted companies are reflective of the diversified nature of the local economy: from banks to energy, from hotels to textiles, and brewers to energy producers. Please find below a diagram best representing the local inter-twined set of companies:
The GBOT is a multi-asset exchange which specialises in derivatives trading. The derivatives offered are cash settled futures contracts as well as contracts for differences in both commodities and currency pairs. As at June 2015, commodities traded include Gold, Silver, and WTI Crude; and, currency pairs are: EUR/USD, GBP/USD, USD/JPY , USD/ZAR, and USD/MUR, although the latter contract can also be settled in kind.