Lusaka Securities Exchange (LuSE)

Regulations

The Securities Act 2016

The Securities Act is a piece of legislation that governs the securities industry in Zambia. It sets out the rules and regulations for the issuance, sale, and trading of securities in the country. The act aims to protect investors, promotes fair and transparent markets, and ensures the stability and integrity of the securities market in Zambia. It covers various aspects of securities regulation, including licensing requirements, disclosure obligations, and enforcement mechanisms. Section 21 and 22 of the act provides for establishment of the exchange.

LuSE Listing Rules For Debt Securities

it was issued in September 2005, provides comprehensive guidelines for listing debt securities on the Lusaka Stock Exchange (LuSE). The document is structured into several sections, covering definitions and interpretations, general requirements for listing, sponsoring brokers and rating agencies, listing particulars, financial information, disclosure in special issues, general and continuing obligations, procedures for listing, and fees and levies.

LuSE-Alternative-Market-Rules

The Alternative Market is a listing tier, which is designed for small and medium-sized enterprises (SMEs) to raise capital through equity. The rules outline the eligibility criteria, disclosure requirements, and ongoing obligations for companies listed on the Alternative Market. They aim to facilitate access to capital for SMEs and promote their growth in the Zambian market.

Listing Process – LuSE

The listing process refers to the steps and procedures that a company must go through in order to list a security/securities on the exchange. It involves submitting an application, providing relevant documentation, and meeting criteria set by guidelines and rules. The stock exchange reviews the application and supporting documents to ensure that the company meets the necessary requirements for listing. If approved, the securities are then made available for trading on the stock exchange, providing investors access to a wider option of investments.

LUSE Corprate Governance Code

The Corporate Governance Code is a set of guidelines and principles that provide a framework for how a company should be governed and managed. It outlines the responsibilities and roles of the board of directors, management, and shareholders, as well as the standards of transparency, accountability, and ethical conduct that should be followed.

Real Estate Investment Trust Guidelines

Outlines the regulations and requirements for collective investment schemes in Zambia, covering aspects such as the contents of offering documents, investment restrictions, valuation, fees, reporting, and appointment of trustees/custodians. It emphasizes transparency, compliance with regulatory standards, and the need to protect investors.

Green-Bonds-Guidelines

Green bonds are financial instruments specifically used to fund projects with environmental benefits. Green Bond guidelines promote the issuance and management of green bonds. These guidelines generally provide criteria and standards for issuers to follow when issuing green bonds, which often include requirements for project selection, reporting, and verification to ensure transparency and credibility in the green bond market.

Collective Investment Schemes

Collective Investment Schemes (CIS). These guidelines provide regulations and requirements for the establishment, operation, and management of CIS on the LuSE. They cover aspects such as eligibility criteria, disclosure requirements, and ongoing.

Real Estate Investment Trusts (REITs)

A REIT is a regulated collective investment vehicle that invests primarily in income generating real estates and enables persons to contribute money’s worth as consideration for the acquisition of rights or interests in a trust that is divided into units with the intention of earning profits or income from real estate as beneficiaries of the trust. Modelled after mutual funds, REITs pool the capital of numerous investors.