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SEM-ASI

The SEM All Share Index (SEM-ASI) includes all listed and traded ordinary shares of companies / Depositary Receipts (DR) (having ordinary shares as underlying) on the Official Market that are denominated in MUR, USD, GBP, EURO, ZAR and other foreign currencies and which meet the SEM’s free-float requirements. On the launch date, the value of SEM-ASI started at the same value as the SEMDEX at market-close of 9th September 2016. Necessary adjustments have been made to market capitalisation and base market capitalisation of SEMDEX to include the new companies in SEM-ASI.



Where, the market value of ordinary shares/DR of a listed company is equal to total number of shares/DR issued (Qi) times its closing market price (Pi).

The conversion rate applied to convert foreign currencies in MUR will be the CDS Conversion Rate (CCR) of the trade day as defined under section 7.7.1 of the CDS Procedures.

Eligible Shares

To be eligible for inclusion in SEM-ASI, a company can either be incorporated in Mauritius or in an acceptable foreign jurisdiction.

Only companies which meet the SEM’s following free-float requirements will be included in the Index:

  • Number of shareholders ---- 200 (Not applicable to DR)
  • Market capitalisation of MUR 20 Million (MUR 10 Million for DR)
  • Percentage held in public hands:
    • 25%.
    • 15%, if the company undertakes to increase its shareholding to 20% by the 3rd year and 25% by the 5th year ((Not applicable to DR)
    • 10%, if the company has market capitalisation greater than MUR 2 Billion and undertakes to increase its shareholding
      to 20% by the 3rd year and 25% by the 5th year (Not applicable to DR)


Where a company’s ordinary shares are issued partly paid and the call dates are already determined and known, the market price, for the purpose of calculating its market capitalisation, is adjusted so as to include all such calls (i.e., the fully paid price).


Divisor Adjustments
Corporate Actions Comments Divisor Adjustments

Company added/deleted

Net change in market value determines the divisor adjustment.

Yes

Change in shares outstanding

Any combination of secondary issuance, share repurchase or buy back – share counts revised to reflect change.

Yes

Stock split

Share count revised to reflect new count. Divisor adjustment is not required since the share count and price changes are offsetting.

No

Spin-off

If the spun-off company is not being added to the index, the divisor adjustment reflects the decline in index market value (i.e., the value of the spun-off unit).

Yes

Spin-off

Spun-off company added to the index, no company removed from the index.

No

Spin off

Spun-off company added to the index, another company removed to keep number of name fixed. Divisor adjustment reflects deletion.

Yes

Special Dividend

When a company pays a special dividend the share price is assumed to drop by the amount of the dividend; the divisor adjustment reflects this drop in index market value.

Yes

Rights offering

Each shareholder receives the right to buy a proportional number of additional shares at a set (often discounted) price. The calculation assumes that the offering is fully subscribed. Divisor adjustment reflects increase in market cap measured as the shares issued multiplied by the price paid.

Yes

Divisor Adjustments



The key to the maintenance of the SEM-ASI is the adjustment of the divisor. Index maintenance, reflecting changes in shares outstanding, corporate actions, addition or removal of stocks to/from the index, should not change the level of SEM-ASI. Any change to the constituents of SEM-ASI that alters the value of the index, while holding stock prices of the constituents constant, will require a divisor adjustment.



Corporate action related changes: There is a large range of corporate action ranging from routine share issuances or buy backs to more complex events like spin-offs or mergers. Some of these changes are listed below with notes about whether the divisor is adjusted.

 

New Shares

If a constituent issued new shares in the current period which were not present in the previous period, the index algorithm adds newly issued capitalisation from total capitalisation in the current period. A cancellation of shares by a constituent is treated as a negative new issue. Shares created by the conversion of other securities are treated as new issues.

Rights Issues

When shares begin trading ex-rights, the theoretical share price falls by the intrinsic value of the rights. Because the SEM-ASI follows only the shares and not the rights, which may be traded separately, an adjustment is needed to prevent the index from dropping. The method is similar to that of a new issue. In both cases, the theoretical price is the weighted price of the shares at the instant after the change.

Dividend In Specie

Dividend in specie (in kind) means dividends not paid in cash. Such dividends are paid out in the form of assets / securities of companies owned by the issuer and are in a given amount.

Bonus Issues, Stock Splits and Reverse Splits

The number of shares created by the bonus issue or stock split is used to adjust the shares outstanding at the ex-bonus/split date. Similarly, a reverse split is recorded as a negative stock split while reducing the shares outstanding by the amount of the negative split. In the case of stock splits, as prices drop by the split ratio, total capitalisation does not change at the time of the split and no adjustment to the SEM-ASI is needed. Stock dividends, also known as bonus issues, have the same effect as splits and no adjustment to the SEM-ASI is therefore needed.

Cash Dividends

Cash dividends can affect share prices, but the industry norm is not to make any adjustment for such dividends in the SEM-ASI. Cash dividends on a per share basis are recorded at the ex-dividend date, using gross cash dividends.

Suspension of Dealing

In the event that a security is suspended, the constituent may remain in the SEM-ASI, at the price at which it is suspended, until suspension of dealing is removed.

Amalgamation (Merger), Restructuring or Takeovers

If an amalgamation (merger), Restructuring or Takeovers results in one security being absorbed by another constituent, the resulting company shall remain a constituent of the SEM-ASI.

If a constituent company is taken over or absorbed by a non-constituent company, the original constituent shall be removed.

Adjustments for Corporate Actions

On Cum-date following close of Market the reference price of the security is adjusted to account for the Corporate Actions: Dividends, Rights Issue, Bonus Issue, Share Split, Dividend in Specie. The Ex- reference price is adjusted to reflect its tick size as per the ATS Procedures. The price spread for the next session is based on the Ex- reference price.