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Securities

13.12.2018
Thursday

How to invest with Swan Securities

The Stock Exchange of Mauritius (SEM) introduced the Central Depository and Settlement System (CDS) in 1997, to provide a centralised depository, clearing and settlement service for the SEM equity and debt markets. The CDS has eliminated certificates, which leads to a more efficient and faster share trading system. The CDS also provides pledge and share release services, as well as securities lending.

Investors wanting to trade on the SEM must have a CDS Securities account with an investment dealer or custodian participant. We guide you through the process and help you to set up your trading account. Our research and portfolio advisory team can also provide you with the information you need to buy or sell shares on the stock market. Our trading team acts on your instructions with professionalism, timeliness and accuracy, while our back office team ensures smooth completion of the settlement cycle. 

Talk to your SWAN investment dealer to find out more information.

Contact us for an account opening pack

 

List of FAQs

 

  • What is a share?

Also known as a stock, a share is a portion of a company.  In theory, a company’s owners make money when the company makes money, and lose money when it loses.  Shareholders are the company’s owners and have the right to participate in annual general meetings, receive reports and information, earn dividends and also receive rights and bonuses when further shares are issued.

 

  • What is a Central Depository and Settlement System (CDS) account?

To trade on the Stock Exchange of Mauritius, all clients must open a CDS account which is held with a CDS participant and used for securities transactions.  All investment dealers must be CDS participants.  It costs Rs300 to open a CDS account.

 

  • How do shareholders benefit?
  1. Being a shareholder attracts certain benefits:
  2. Tax-free capital gains and dividends as per current law
  3. Low transactions and holding cost
  4. Flexibility and liquidity
  5. Diversification among asset classes, areas, sectors and brands
  6. Possibility of re-investing dividends
  7. Start with a small initial investment
  8. Benefit from further issues (bonus and rights)

 

  • What are the fees for trading?

We charge up to a maximum of 1.25% on the transaction value for equities. For other types of securities, please check the link: http://www.stockexchangeofmauritius.com/brokerage-fees

 

  • How do I start trading?

Once you have a CDS account, simply contact us by email or phone to place orders on the market, mentioning the name of the stock, the price, volume and order validity.

 

  • How do I pay for my transactions?

You can pay by personal cheque or bank transfer, normally up to three days after the transaction.

 

  • How do I sell my shares?

Simply instruct your trader by email or phone and receive payment three business days later.

 

  • How do I receive dividends?

The instructions in your CDS account specify how payment is made.  Different share registries process dividends, interest payments and maturity proceeds.  When not paid to a bank account, dividends are paid by cheque and sent to the registered CDS account address.

 

  • What are the risks?

There are risks when investing on the stock market, including capital loss, lack of experience and inconsistent strategy.  There are also risks associated with liquidity, legislation and currency.  Dividends are not guaranteed.

How to Invest