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:
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.
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:
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
Recognition of Foreign Schemes
The FSC may also recognise, under Section 101 of the Securities Act 2005, a CIS established in a foreign country subject to such conditions as the FSC considers necessary for the protection of participants in the CIS.
Investment Funds' Intermediaries
The Intermediaries, CIS Managers, Custodians and CIS Administrators, ensure the proper functioning of the CIS/CEF and have to undergo a rigorous assessment during the licensing process. Once licensed, the FSC continually monitors the intermediaries for compliance with supervisory, prudential and conduct of business norms as per the CIS Regulations.
Memorandum of Understanding with the European Securities and Market Authority
On 30 May 2013, the FSC signed Memorandum of Understanding relating to the supervision of Alternative Investment Funds Managers Directive (AIFMD) with 23 European Union (EU) / European Economic Area (EEA) Securities Regulators. These memoranda give investors the possibility to use CIS/CEF set up in Mauritius for investment and distribution in European countries. As such, post 22 July 2013, with the coming into effect of the AIFMD, Mauritius authorised CIS/CEF are able to continue marketing their fund in Europe as per the requirements of the AIFMD. For more information, click here.
Applying for a licence - Securities
Register of Licensees