CDS

Trades in securities denominated in Mauritian Rupee, USD, Euro and GBP are settled in the currency in which the securities are denominated. There are separate net settlement mechanisms for each currency. Investors make and receive payments to their brokers and custodian banks in the currency in which the securities are denominated. For example, an investor who sells a security denominated in USD will receive the settlement amount in USD from its broker or custodian bank on T+3. Similarly an investor who sells a security denominated in USD will need to make payment of the settlement amount in USD to its broker or custodian bank by T+3. In both cases, the settlement amount is not converted in Mauritian Rupee at any point in time during the settlement process.

In December 2016, SEM and CDS introduced dual-currency trading and settlement for the securities of foreign and global business companies listed on the SEM with the objective of offering investors the option to trade securities that are currently only traded in foreign currency, in MUR as well. At the request of the respective issuers, SEM allows securities that are denominated in foreign currencies, to be traded in the following currencies:

(i) the primary currency which is the currency in which the security is issued in; and
(ii) the local currency namely the Mauritian Rupee (MUR).

• Stockbroking companies may submit requests for trade amendments which do not affect accounts of clients of custodian banks, up to T+3, 9.30 a.m. A surcharge is however be imposed if such requests are submitted after T+2, 12:30 Hrs.
• For trade amendments which affect Securities accounts of clients of custodian banks, stockbroking companies may submit their requests up to T+1, 4.30 p.m. However, after T, the prior agreement of the custodian bank is required before the trade is amended.
• Custodian banks have up to T+2, 12:30 Hrs to confirm purchases that have been allocated to the clients by stockbroking companies on T and up to T+2, 4.30 p.m. to confirm purchases that have been allocated to their clients on T+1. Any request for trade acceptance of purchase transactions after those deadlines is subject to surcharge.
• CDS does not accept any request for acceptance of purchase transactions after T+3, 9.30 a.m.
• A purchase that has not been accepted by T+3, 9.30 a.m. must be settled by the stockbroking company which effected the trade
• Custodian banks have up to T+2, 12:30 Hrs to confirm sales that have been allocated to their clients on T and up to T+2, 4.30 p.m. to confirm sales that have been allocated to their clients on T+1. Any request submitted after the deadline is subject to a surcharge
• A sale transaction not confirmed by T+3, 9.30 a.m. is treated as a failed trade. CDS will initiate buy-in procedures. However, if the custodian bank subsequently accepts the trade, CDS will abort buy-in procedures provided that such confirmation reaches CDS before T+5, 9.30 a.m. Such confirmations is subject to a surcharge.
• Sales accepted after T+3, 9.30 a.m. will be settled through the CDS Settlement Services on the business day following the day on which the trade is accepted and the sale will be deemed to have been effected on T itself.

0.02 % of the value of the transaction with a minimum of Rs 1,000/- and a maximum of Rs 5,000/- is applicable:

• In respect of trade amendment or confirmation after T+2, 12:30 Hrs
• In respect of custodian trades amended on T+1 and confirmed by the custodian bank after T+2, 4.30 p.m.

0.04% of the value of the transaction with a minimum of Rs 2,000/- and a maximum of Rs 10,000/- is applicable:

•  In respect of sale transactions allocated to clients of Custodian Banks that are confirmed by the latter after T+3, 9.30 a.m.

For each trade that is executed on the exchange and that is settled through the CDS, an investor pays a transaction (brokerage) fee that depends on the value of the trade and that is apportioned among the following: investment dealer that executed the trade; exchange; regulator; and CDS. The transaction fees below have been approved by the Board of CDS.