As provided under the Financial Services Development Act 2001, the Financial Services Commission administers The Stock Exchange Act 1988 and the Securities (Central Depository, Clearing and Settlement) Act 1996 and elaborates policies among others which are directed to ensuring the fairness, efficiency and transparency of financial and capital market in Mauritius.
The Securities Act 2005 aims to enhance and upgrade the existing securities legislation. It also provides a wider and deeper coverage of the securities market in Mauritius and is based on standards recommended by the International Organisation of Securities Commissions (IOSCO). The main object of the Securities Act 2005 is to ensure a fair, efficient and transparent securities market and most importantly, to strike an appropriate balance between the protection of investors and the interest of the securities market. It establishes a framework for adequate regulation of securities market, market participants, self-regulatory organisations and for the offering and trading of securities.
The SEM-7 comprises the seven largest eligible shares of the Official List, measured in terms of market capitalisation. Only shares which meet liquidity and investibility criteria are eligible for inclusion in the SEM-7. Maintenance of the index is ensured by an independent Index Management Committee. The Index Management Committee (composed of stockbrokers, fund managers, academics, and officials from the Stock Exchange of Mauritius) ensures that the process of building and maintaining the SEM-7 is as interactive as possible.
The Stock Exchange of Mauritius (SEM) has launched a Total Return Index in 2002, the SEMTRI, whose main purpose is to provide domestic and foreign market participants with an important tool for performance measurement of the local market. Besides capturing the price movements of listed stocks, common to the already published all-share index SEMDEX, the Total Return Index, SEMTRI, incorporates the added feature of providing investors, in general, and long-term investors like pension funds, in particular, a good measurement of total return which combines both capital gains/losses on listed stocks and gross dividends obtained on these stocks since the inception of the local stock market on 5 July 1989. Gross dividends are assumed to be re-invested in the stocks underlying the capital index, SEMDEX.
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