Securities

As per the Securities Act 2005 , the FSC is the regulator of the non-bank financial markets in Mauritius which comprises Securities Exchanges, clearing and settlement facilities and securities trading systems on the one hand and Collective Investment Schemes and intermediaries on the other.

Therefore, as the regular of the securities markets, the FSC strives to:

• foster fair, efficient, transparent and informed markets for securities in Mauritius;
• monitor and regulate the operations of securities exchanges and the activities of persons providing clearing and settlement services and trading systems for securities;
• suppress and prevent financial crimes and illegal practices;
• regulate the disclosure of information by persons issuing securities and by reporting issuers to securities holders and to the public;
• cooperate and collaborate with domestic and international organisations, law enforcement, supervisory and regulatory bodies; and
• reinforce the protection of investors in Mauritius from unfair, improper and fraudulent practices.

The FSC is a member of the International Organisation of Securities Commission (IOSCO). The FSC was awarded the "Most Innovative Capital Markets Regulator of the Year Award" by Africa Investor in September 2010 at a summit organised, in collaboration with New York Stock Exchange (NYSE) Euronext. The Award recognises the measures taken by the FSC to promote the development of financial services in Mauritius and the adoption of a business-friendly approach to regulation.

Securities Exchanges
There are three licensed Securities Exchanges in Mauritius - the Stock Exchange of Mauritius Ltd (SEM) , AFRINEX Limited and MINDEX Limited

Stock Exchange of Mauritius Ltd
SEM, one of the leading exchanges in Africa operates a fully automated stock market infrastructure from trading to settlement which is in line with international standards. This system has revolutionised trading practices in Mauritius and empowered investors to benefit from real time trading.

SEM has gained international recognition by achieving membership status to the World Federation of Exchanges since 2005 and has gone live on the Bloomberg index since 2009.

The SEM is a member of the World Federation of Exchanges since 2005 and has gone live on the Bloomberg index since 2009. It operates two markets in the equity segment: the Official Market - meant for larger companies, consisting of some 40 listed companies and the Development and Enterprise Market (DEM) catering for medium and small enterprises which comprises some 50 companies. The listed companies span over the various sectors of the economy such as banks, insurance and other finance, commerce, sugar, industry, investments and transport.

With the lifting of the Exchange Control in 1994, foreign investors can also trade on the SEM.

The Central Depository & Settlement Co Ltd (CDS) is a subsidiary of the SEM and is operational since 1997. CDS was established to provide centralised depository, clearing and settlement services for the Mauritian equity and debt markets. It complies with the international standards (Group of 30 Recommendations; Core Principles for Systemically Important Payment Systems/International Organisation of Securities Commission - CPSS/IOSCO Recommendations) on depository, clearing and settlement systems. Trades are settled within a rolling T+3 settlement cycle on a strict Delivery versus Payment (DvP) basis.

Investment Funds and Intermediaries
Investment Funds and their Intermediaries (CIS Managers, CIS Administrators and Custodians) are regulated by the FSC under the Securities Act 2005 and the Securities (Collective Investment Schemes and Closed-End Funds) Regulations 2008, which provide for a consolidated regulatory and supervisory framework.

In line with the International Organisation of Securities Commissions (IOSCO) Principles, the FSC aims at:

• setting standards for the governance, organisation and operational conduct of those who wish to market or operate a fund;
• providing a legal framework governing the legal form and structure of funds;
• ensuring that sufficient disclosures and information are provided for investors to evaluate the suitability of an investment;
• regulating fund intermediaries; and
• protecting the best interest of investors and the financial market.

Investment Funds
Under the Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008 (the CIS Regulations), investors have the possibility to select the type of Investment Funds, whether Collective Investment Schemes (CIS) or Closed-end Funds (CEF), that best suits their profile, risk tolerance and return objective. The table below defines the types of CIS/CEF:

 MoUs (relating to the supervision of AIFMD entities) with European Economic Area (EEA) Securities Regulators