Mauritius: capital markets | practical considerations in the context of the Coronavirus (COVID-19)

An announcement made by The Stock Exchange of Mauritius Ltd (“SEM”) and the Central Depository & Settlement Co. Ltd (“CDS”) confirmed that on April 3 2020, the Financial Services Commission (“FSC”) revoked the order of 2 April 2020 for the temporary cessation of the operations of the SEM.

Trading and settlement activities on SEM and CDS will, therefore, resume on Monday, 6 April 2020 after the SEM and the CDS have provided additional measures so as to operate in the current environment of total lockdown, including:

ensuring that critical operations as per SEM Business Continuity Plan are performed through the work from home structure;
obtaining confirmation from the Port Louis Stockbroking Association, custodian banks and settlement banks that they are ready to operate and perform their relevant functions.

SEM and CDS trading and settlement operations will continue without interruption under normal trading hours subject to the mandatory conditions listed below:

Participants have adequate funds in their bank accounts by 10H30 on each settlement day;
The relevant settlement banks submit debit instructions to Bank of Mauritius by 11H00 on each settlement day; and
The Bank of Mauritius transfers the funds among the settlement banks by 12H00 on each settlement day.

Should any of the above conditions not be met at any point in time, SEM and CDS will halt trading and settlement operations forthwith.

SEM and CDS further announced that:

Investors are advised to exercise caution when dealing in securities in these difficult market conditions and consult their professional advisers.
All service providers may reach out to their usual SEM and CDS Engagement Contacts for any queries or concerns relating to their respective businesses.

Reviewed by Thierry Koenig SA, head of ENSafrica (Mauritius) and Martine de Fleuriot de la Coliniere, an executive at ENSafrica (Mauritius).

Elsie Rasolohery Pascal
Executive | Mauritius
epascal@ENSafrica.com
+230 5492 3558

COVID-19, also known as the Coronavirus, is an infectious disease caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) that was declared a pandemic by the World Health Organization on 11 March 2020. The disease has since been reported in over 190 countries.

No information provided herein may in any way be construed as legal advice from ENSafrica and/or any of its personnel. Professional advice must be sought from ENSafrica before any action is taken based on the information provided herein, and consent must be obtained from ENSafrica before the information provided herein is reproduced in any way. ENSafrica disclaims any responsibility for positions taken without due consultation and/or information reproduced without due consent, and no person shall have any claim of any nature whatsoever arising out of, or in connection with, the information provided herein against ENSafrica and/or any of its personnel. Any values, such as currency (and their indicators), and/or dates provided herein are indicative and for information purposes only, and ENSafrica does not warrant the correctness, completeness or accuracy of the information provided herein in any way.