New DEM market system to attract foreign investment
22 Jun '06
2 min read
Small-and medium-sized companies will now be able to list their shares and sell their stocks to foreign investor as the Stock Exchange of Mauritius has deviced Development and Enterprise Market (DEM).
Foreign investor can now partake in this new avatar of Over the Counter market system that is earlier barred foreign investors as it was unregulated, and yet, having a total turnover is about 40-billion rupees.
With the phasing out of the OTC market from August, DEM will be subject to less stringent listing regulations than the main Semdex bourse and small companies will be benefited by this move.
Trading on the new market would utilize the same electronic system as the main bourse.
From among the 80 Mauritian companies, 40 would trade their shares over the counter plan to list on DEM.
It will now be possible for a little known company acquire finance for running its show and also get opportunity to raise finance through this alternative exchange.
Sugar and textiles industries proved the economic backbone of the country but with the expiry of WTO formulated quotas, its growth slid down to less than 3.5 percent last year, despite the country being one of Africa's star performer on the export's front for decades.
This move of Mauritius Government will channelize the inflow of precious foreign investment and empower small entrepreneurs with government grants also.
Even tourism and offshore banking sector will be provided necessary fillip, sources contend.
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