The Malawi Stock Exchange, in conjunction with the Reserve Bank of Malawi, would like to notify the market players, issuers of securities and the investing public that we are in the course of automating the Malawi Stock Exchange trading processes. The project involves the establishment of an Automated Trading System (ATS) at the Malawi Stock Exchange as well as the introduction of electronically held certificates at the Reserve Bank of Malawi Central Securities Depository (CSD). Electronic trading is expected to commence by end of May 2018 and only securities that have been transferred and registered in the CSD will be traded in the ATS. Going forward, after implementation of the systems, all new IPOs and subsequent trading will be made in the CSD and the ATS, respectively.
The CSD is commencing the dematerialization process of the existing paper certificates and therefore requires that shareholders open investor accounts and dematerialize their securities (migrating from paper based title to electronic securities) in preparation for the trading of electronic based securities following implementation of the systems. Current shareholders are consequently required to contact a registered stock broker or custodian to dematerialize their stock holdings. Stock holders will be required to complete a Stock Holding Declaration and Consent to Dematerialize form upon presentation of the physical certificates; a signed and stamped copy of the form will be provided to the holder. The dematerialization process will run from 30th April, 2018 to 30th September, 2018.
The investing public is encouraged to open securities accounts (in the same manner that one opens a bank account) through a registered custodian or stock broker from 30th April, 2018 onwards and deposit their share certificates in such accounts. We strongly encourage investors to deposit their securities early in order to minimize inconveniences that holders may face when need to trade arises instead of waiting for the deadline. Investors in regularly trading counters are particularly encouraged to speed up the dematerialisation of the securities.
For further information, please contact your Custodian, Stockbroker, or Transfer Secretary. For further details on the CSD contact the Reserve Bank of Malawi on 01771600 and speak to the Manager in charge of CSD or contact the Malawi Stock Exchange on 01824233
