PROCESS OF INVESTING IN SHARES WITH BOTSWANA STOCK EXCHANGE
The first step that one should take before buying shares is to contact and approach a licensed Botswana Stock Exchange (BSE) Broker who are licensed officials given the authority to buy and sell shares on the investors behalf.
One needs the following in order to open a successful CSD account as an indivdual:
- Certified Copy of ID/Valid Passport
- Proof of Residence (Utility Bill/Lease Agreement/Affidavit)
- Proof of Income (Payslip and/or Bank Statement)
You will require the following to open a CSD account as a company/corporate body:
- Copy of Certificate of Incorporation & Copies of ID/Passport of the Directors
- Proof of Address (Utility Bill/Lease Agreement)
- Proof of Income (Bank Statement)
- Constitution or Resolution/Letter of Consent from the Board of Directors.
They also provide financial advice on what kind of stock to buy and to invest on without losing. All Brokers are required to meet a few requirements such as acquiring appropriate qualification (such as Registered Persons Examinations or RPEs), experience and must comply with the BSE Member Rules.
The investor has to open an account with the Broker, a CSD account will be open which is an account which the investors shares will be secured and the statements will be sent to the investor. The investor can only place orders for shares once the CSD account and the trading account are open.
Once the Broker receives an order, it is relayed to the BSE to be executed in a system that collects orders from several other Brokers and matches them and buys them using the Automated Trading System (ATS).
Once the order is done, the Broker will confirm the trade to the client by sending a contract note that shows the name of the company in which shares have been bought, the number of shares, the price at which the shares were bought and the charges incurred in the transaction. Three days (3) after the trade has been executed, the shares will be credited in your CSD account and from that date on you will become a shareholder of the company in which you have bought the shares.
When you want to sell shares, a similar process is followed. Brokers may be contacted by mail, telephone or personal visits. Note that the broker may require you pay first and produce proof of payment before placing an order.
The BSE operates and regulates the securities market, therefore you cannot purchase or even sell shares directly through the BSE.
Source: Botswana Stock Exchange
