Dar bourse in major reforms to increase efficiency, speed

The Dar es Salaam Stock Exchange (DSE) has made two major improvements aimed at enhancing its efficiency and making its services accessible to investors across the country.

The bourse has improved its settlement cycle, that is, delivery versus payment for both equities and bonds. 

This will mean that it will now take only three days to make deliveries and payment for shares, unlike the previous five days.

“For example, if you buy CRDB shares today, you will receive your certificate within three working days. The one that sold you the shares will also receive his cash during that same time,” DSE chief executive officer Moremi Marwa said in Dar es Salaam yesterday.

Similarly, deliveries and payment for bonds will now be done in just one working day as opposed to three days previously.

Security situation has also been improved to reduce payment risks involved during transaction for both equities and bonds, said Mr Marwa.

In yet another improvement, DSE has shifted from the Local Area Network to Wide Area Network in a move meant to make its services accessible by market brokers in the comfort of their offices wherever they are.

“Market brokers can now conduct trading activities right from their offices,” he said.

The reform in delivery and payment will increase liquidity in the market as transaction time will be shortened.
Source: The Citizen, reported by Vainess Mollel in Dar es Salaam
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