SEM is a demutualised exchange and is constituted as a public company. The Board of the SEM is the focal point of the corporate governance system and is ultimately accountable and responsible for the performance and affairs of the Company. In accordance with its Articles, the Board of the SEM has delegated authority for the implementation of Board decisions and day-to-day management of the SEM to the Chief Executive.

The power to act on certain listing matters resides in the Board of the SEM.  The Listing Executive Committee (LEC) deals with listing applications on the Official Market and other specific issues as provided in the SEM Listing Rules. The Listing Executive Committee is comprised of the following four Representatives of SEM and four external Members.

The Board has also established two Sub-Committees; namely, the Audit and Risk Management Committee and the Corporate Governance Committee, which also acts as the Remuneration Committee and the Nomination Committee.

SEM operates two markets: the Official Market and the Development & Enterprise Market (DEM). The listing requirements are the following:

A company seeking a listing on the Official Market of the SEM should:

- Demonstrate an adequate trading record with published or filed accounts for the three years preceding the application for listing;

- Have an expected market capitalisation of not less than MUR20m; and

- Issue at least 25% of its shares to the public, with a minimum of 200 shareholders, though this threshold may be phased in, with companies issuing 15% of their shares initially, increasing this proportion to 20% within three years and 25% by the end of five years. 

A company seeking a listing on the Development & Enterprise Market of the SEM should have:

 - SEMDEX

 - SEMTRI

 - SEM-7

 - DEMEX

 - DEMTRI

The SEMDEX, the benchmark index, is an index of prices of all listed stocks where each stock is weighted according to its share in the total market capitalisation. It is a weighted index and each stock is weighted according to its shares in the total market capitalisation.  Thus, changes in the SEMDEX are dominated by changes in the prices of shares with relatively higher market capitalisation.  In its computation, the current value of SEMDEX is expressed in relation to a base period, which is chosen as the 5th July 1989, with an index of 100.

The index formula is as follows:

  SEMDEX = Current market value of all listed shares  X 100

  Base market value of all listed shares

where the market value of any class of shares is equal to the number of shares outstanding times its market price.

The base value of listed shares is adjusted to reflect new listings, rights issues and other capital restructurings.

The Total Return Index, the SEMTRI, was launched in October 2002. 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 pensions 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.

The SEM-7 index was introduced in March 1998. Designed to meet international standards and provide an investible benchmark for domestic and foreign market participants. The SEM-7 comprises the seven largest eligible shares of the Official Market, measured in terms of market capitalisation, liquidity and investibility criteria.

The DEMEX is a capital-weighted index which tracks the price weights of the shares listed on the DEM.

The DEMTRI is a total-return index for the DEM market.

Ordinary shares, preference shares, debt securities, rights, bonds approved for issue by the Financial Services Commission, units issued under a unit trust approved scheme, Treasury bills.

Since June 2001 trading has been computerised through the Stock Exchange of Mauritius Automated Trading System (SEMATS). Trading in securities is conducted through dedicated trading workstations located at stockbroking companies and linked by communication lines to the SEM trading engine. The SEMATS also incorporates internet trading facilities, which will enable investors to follow the stock market on a real time basis. Through the SEM's website, investors can access iNET, the internet-based routing mechanism, assess the market situation and place orders to their stockbrokers. These orders are validated by the stockbrokers and transmitted to SEM's trading system for matching.

The Central Depository and Settlement Company Ltd (CDS) came into operation in 1997. The CDS is regulated through the Securities (Central Depository, Clearing and Settlement) Act 1996, the Rules and Procedures. The CDS has been designed according to IOSCO standards. The fundamental concept of Delivery versus Payment is implemented on a rolling T+3 basis with the Bank of Mauritius (BOM) acting as the Clearing Bank (as stipulated in the CDS Act).

Once the BOM confirms that funds settlement has occurred, the CDS transfers the shares between the securities accounts of the respective clients.

SEM's Trading Schedule is as follows:

The transaction costs that an investment dealer may charge clients for dealing on their behalf.  The fee claimed by investment dealers are as follows:

0 – 1.00: increment is  0.01

1.00 – 10: increment is  0.05

10 – 50: increment is 0.10

50 – 100: increment is  0.50 

100 – 500: increment is  1.00

500 – 1,000: increment is  5.00 

1,000+ : increment is  10.00

If there is a security delivery failure a buy-in will be initiated with the defaulting broker having to put up 50% of the value of the transaction, to be used to compensate the buyers who will be paid an amount equal to 50% of the difference between the price originally paid and the price at which the stock was subsequently sold. A further 15% will be paid on undelivered stock after 5 trading sessions since initiation of the buy-in.

If there is a funds settlement failure, the Guarantee Fund will make good the obligations of the defaulting investment dealer. There has never been any failed trade on the Mauritian stock market. 

Cross trades are allowed, provided certain specific conditions are satisfied. Only transactions with a value greater than MUR 10m or >2% of the issued quantity of the security can be crossed. Crossings are permitted within the allowable price spread of the security. Crossings can only occur between one buyer and one seller. No split trades are allowed on the crossing board price.

Dividends and capital gains

There is no tax on dividends paid by a company listed on the Stock Exchange of Mauritius or by a subsidiary of that company.

There is no tax on gains or profits derived from the sale of units or of securities listed on the Official List and the Development & Enterprise Market of the Stock Exchange of Mauritius.

Listed companies and subsidiary listed companies

A company listed on the Stock Exchange pays tax at the rate of 15%.

Foreign investment

There is virtually no restriction on foreign investment in companies listed on the Stock Exchange. Foreign investors do not need approval to trade shares, unless investment is for the purpose of legal or management control of a Mauritian company or for the holding of more than 15% in a sugar company. Foreign investors benefit from numerous incentives: revenue on sale of shares can be freely repatriated, and dividends and capital gains are tax-free.