The Non Banking Financial Institutions Regulatory Authority (NBFIRA) has reportedly approved the Botswana Stock Exchange (BSE) new listing rules and requirements, new information from the capital markets emerged this week.
The new rules are expected to bring the local bourse at par with the international regulatory standards to while at the same time reflecting current market practice in a more user-friendly form.
While the new rules are expected to be implemented before the end of the year, Chief Executive at BSE, Thapelo says that would be done only after listed companies, brokers and other capital markets interested parties have been given sufficient time to read through the new rules.
Tsheole says this would ensure adequate compliance adding that the time allowance also applies to potential issuers who have been preparing themselves on the basis of the current rules.
“Our main committee provided oversight by issuing initial approval to allow us to undertake extensive market consultations and then final approval before submission to NBFIRA who is our regulator,” says Tsheole.
The current rules are said to have been last reviewed in the 1990s and as such were due for a major update in order to modernize them and enhance alignment with harmonization of the listing requirements in the SADC region.
“We adopted a process that follows international best practice and this means that the process was transparent and inclusive, involving the BSE, the BSE Main Committee, the Regulator, listed companies, practitioners, market participants and other interested parties in Botswana and across the world,” says Tsheole.
In putting up the new rules, BSE is said to have took into account the importance of promoting harmonization of the listing requirements in the SADC region which is an important project undertaken by the Committee of SADC Exchanges. The harmonisation is also tipped to make it feasible and easier for multi national companies to cross list within the SADC markets.
Tsheole is the incumbent Chairman of the SADC exchanges having elevated to the position recently.
“The level of standard we have adopted cement our role of protecting stakeholder interests by promoting adequate disclosure and practices by listed companies,” says Tsheole.
Amongst the major highlight of the new rules is the composition of the rules for Tshipidi SMME Board. Tshipidi board is also expected to go live before the end of 2018.