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  • The Dar Es Salaam Stock Exchange PLC is a licensee of the Capital Markets and Securities

    Authority

    THE DAR ES SALAAM STOCK EXCHANGE

    PLC RULES, 2016

    Prepared by the Board of the Dar Es Salaam Stock Exchange

    PLC

    Approved by the Capital Markets and Securities Authority on

    the 28th day of July, 2016

  • 1

    THE DAR ES SALAAM STOCK EXCHANGE PLC RULES, 2016

    TABLE OF CONTENTS

    PART I

    PRELIMINARY PROVISIONS

    1. Citation

    2. Interpretations

    PART II

    THE GOVERNANCE OF THE DAR ES SALAAM STOCK EXCHANGE

    3. General Meeting of Members

    4. The Board

    5. The Chief Executive Officer

    6. Managers

    PART III

    DIVISION I

    MEMBERSHIP OF THE EXCHANGE

    7. Admission to Exchange

    8. Eligibility of members

    9. CSD members

    10. Application procedures for membership

    11. Bank guarantees

    12. Memorandum and Articles of Association

    DIVISION II

    CODE OF BUSINESS CONDUCT

    13. Independence

    14. Fiduciary responsibility

    15. Conflicts of interest

    16. Priority of clients' interests

    17. Exposure to a single security

    18. Market abuse and manipulation

    19. Compliance by LDMs and their clients

    20. Customer complaints

    21. Liability of directors and officers of Members

    22. Acts of misconduct

    23. Disciplinary procedures

    24. Disciplinary measures

    25. Resolution of disputes between Members

    26. Business conduct

    27. Legal persons

    28. Natural persons

    29. Nominee accounts

    30. Particulars of clients

    31. Contract Notes

    32. Discretionary Accounts

    33. Brokerage and DSE fees

  • 2

    34. Payments to clients

    35. Accounting records

    36. Trust Accounts

    37. Annual Accounts

    38. Quarterly returns

    39. Termination of membership

    40. Expulsion

    PART IV

    LISTING RULES FOR THE MAIN INVESTMENT MARKET SEGMENT (MIMS)

    41. General provision

    42. Procedure for approval of the Board

    43. Sponsorship of application for Listing

    44. Application for Admission on the List

    45. Documents to be submitted with an application

    46. Basic conditions to be fulfilled by an applicant

    47. Admission of rights issues on the List

    48. Admission on the List of preference shares

    49. Provisions relating to prospectuses

    50. Fulfilment of requirements

    51. Listing Fees under MIMs

    52. Admission on the List

    53. Continuing obligations

    54. Market abuse and manipulation

    55. Disciplinary measures

    56. Non-Compliant Board

    57. Suspension of Admission on the List

    58. Cancellation of Admission on the List

    59. Resolution of issues

    PART V

    LISTING RULES FOR THE ENTERPRISE GROWTH MARKET SEGMENT (EGMS)

    60. General provision

    61. Approval procedure

    62. Nominated Advisor

    63. Requirement for Nominated Advisor

    64. Sponsoring Broker

    65. Application for Admission on the EGMs List

    66. Documents to be submitted with an application for listing on the EGMs

    67. Transferability of Securities

    68. A company's period of existence

    69. Distribution of shares

    70. Fully paid up shares and Rights Issues

    71. Admission on the EGMs of Securities of the same class

    72. Warrants or options to subscribe

    73. Options or Warrants not accompanying other Securities

    74. Exchangeable or convertible Securities Warrants or Options

    75. Period Moratorium

  • 3

    76. Admission on the Official List of preference shares

    77. Listing Fees under EGMs

    78. Continuing listing obligations to be observed

    79. Market abuse and manipulation

    80. Requirement to retain a Nominated Advisor

    81. Disciplinary measures and procedures

    82. Suspensions and cancellations

    83. Migration to the MIMs

    PART VI

    LISTING RULES FOR DEBT SECURITIES

    84. Approval of the Board

    85. Conditions to be fulfilled by an applicant

    86. Admission on the List of Debt Securities

    87. Application procedure for Government and other legal persons

    88. Contents of an Offering Document

    89. Fees for debt securities

    PART VII

    DIVISION I

    GENERAL TRADING RULES

    90. Eligible Securities

    91. Persons permitted to trade

    92. Attendance at trading sessions

    93. Client Instructions

    94. Trading as Principal

    95. Exchange Dealings

    96. Irregular Deals

    97. Trading Sessions

    98. Access to DATS

    99. System Failure

    100. Ownership of Securities

    101. Short Selling

    102. Validity of Bids and Offers

    103. Tick Sizes and Trade Ranges

    104. Division of Markets

    105. Normal Lots

    106. Odd Lots

    107. Block Trades

    108. General requirements for all types of Block Trades

    109. Pre-Arranged Trades

    110. Amendments Pre-Arranged Trades

    111. Pre-Arranged Trades Life Time

    112. Instruments

    113. Visibility of Pre-Arranged Trades

    114. Clearing the Order Book

    115. All or None (AON) Blocks

    116. Price Discovery Mechanism

  • 4

    117. Bidding Constraints

    118. Bidding Procedure

    119. Amendments of AON Trades

    120. Price Constraints

    121. Visibility of AON Trades

    122. Trading Phases

    123. Pre-Opening

    124. Open Auction

    125. Opening Algorithm

    126. Continuous Trading

    127. Market Close

    128. Closing Price

    129. Posting Orders

    130. Order Validation

    131. Order Amendments

    132. Cancellation of Orders

    133. Order Log Book

    134. Types of Orders

    135. Limit Orders

    136. Market Orders

    137. Protection Price

    138. Order Attributes

    139. Order Qualifiers

    140. No qualifiers

    141. Fill or kill (FOK)

    142. Immediate or Cancel (ICC)

    143. Time in Force (TIF)

    144. Good till Cancelled (GTC)

    145. Good till Day (GTD)

    146. Day Order (DAY)

    147. Minimum fill Quantity

    148. Disclosed and Undisclosed Volumes

    149. New issues Price Discovery

    150. Trade Confirmation and Cancellation

    151. Dissemination of Market Information

    152. Market Report

    153. Market Halt

    154. Security Halt

    155. Depository Updates

    DIVISION II

    BONDS TRADING RULES

    156. Bond Pricing and Accrued Interest

    157. Trading Ex-coupon

    158. Trading Ex-principal

  • 5

    DIVISION III

    MOBILE TRADING RULES

    159. Mobile Trading Procedures in Listed Securities

    160. Adherence to the General Trading Rules

    PART VIII

    DIVISION I

    THE CENTRAL SECURITIES DEPOSITORY (CSD)

    161. General provision

    162. Definitive Register

    163. Supplementary criteria applying to CSD Members

    164. CSD Accounts

    165. Timetable of CSD Events

    166. Ledger Balance Report

    DIVISION II

    DEPOSIT OF SECURITIES INTO THE CSD DURING IPOS

    167. Mandatory Immobilisation after the IPOS

    168. IPOs and other Securities Corporate Actions

    169. Immobilisation of Securities

    170. Effecting Transfer of Ownership of Securities

    DIVISION III

    WITHDRAWING CERTIFICATES FROM THE CSD

    171. Withdrawal of Securities

    172. Withdrawal procedure

    DIVISION IV

    MORTGAGING OF SECURITIES

    173. Mortgaging of Securities

    174. Mortgaging procedure

    175. Access to Collateral by the Lender

    176. Mortgage Release

    DIVISION V

    SETTLEMENT OF TRADES

    177. Settlement of Trades

    178. Default procedures

    DIVISION VI

    SECURITIES TRANSFERS

    179. General requirements

    180. Transfer of Securities between LDMs and CSD Members

    181. Private Transfers

    DIVISION VII

    CORPORATE ACTIONS

    182. Merger of holdings between spouses

    183. Division of holdings between joint holders

    184. Securities collateral, repurchase or lending

  • 6

    185. Corporate actions processing

    186. Dividend/Interest Payments

    187. Redemptions

    188. Rights and Bonus Issues

    189. Bonds

    DIVISION VIII

    DEPOSIT OF NON LISTED SECURITIES IN THE CSD

    190. Application to deposit Non-Listed Securities

    191. Documents to be submitted with an application to deposit Non-Listed Securities

    192. Basic conditions to be fulfilled by an Applicant

    PART IX

    LISTING OF FOREIGN COMPANIES RULES

    193. Cross-listing of Securities

    194. Continuing Obligation Requirements

    195. Transactions in Cross-Listed Securities

    PART X

    FOREIGN INVESTORS RULES

    196. Permission for Investment by Foreign Investors

    197. Appointment of Custodian

    198. Deposit of Certificates (securities) into the CSD

    PART XI

    INVESTOR PROTECTION FIDELITY FUND

    199. Preliminary

    200. Claims

    201. Declaration of Default

    202. Default Notice

    203. Application for Compensation

    204. Exclusion from Compensation

    205. Limit of Compensation

    206. Reduced or Interim Payments

    207. Assignment of Rights

    208. Powers of the Board

    209. Revenue of the Fidelity Fund

    210. Payment out of the Fidelity Fund

    211. Records

    212. Cooperation with the Committee and the Board

    PART XII

    SECURITIES MARKET INDICES

    213. Index Management Committee

    214. Duties and responsibilities of the Index