BSE suspends top stockbroking firm

Portia Nkani - BG reporter
Friday, 02 September 2016
BSE suspends top stockbroking firm

Botswana Stock Exchange and the Central Securities Depository Botswana have suspended Stockbrokers Botswana firm from trading for an indefinite period of time. BSE Chief Executive, Thapelo Tsheole broke the news to the media after calling an impromptu meeting on Wednesday at the regulator head office, Exchange House.

Stockbrokers is the company which prides ‘as having been involved in every main board equity listing on the BSE since inception’ in 1989. The BSE boss said the regulator has the powers to suspend any stockbrokers found contravening regulations which can range from compliance, operational and governance.  “We suspend pending further action in assistance with the Non Bank Financial Regulatory Authority (NBFIRA) who are our regulator,” shared Tsheole. Upon completion of investigations, regulators can decide what further action can be taken for the said company. Botswana Guardian understands that, if the violation is serious, such company’s licence can be revoked.

“On a normal basis, brokers always have several breaches but they may not be those that can lead to suspensions. As for SBB, it is an issue that we have been closely looking at then yesterday (Tuesday) we took a decision to suspend them,” he revealed. However, at the time of the briefing the Stock Exchange was unable to share on the details that led to this suspension until the investigations are complete. Stock Brokers is one of Botswana’s four broking firms, namely; Motswedi Securities, Imara and African Alliance.
Contacted for comment, Stockbrokers Botswana (SBB)’s Managing Director, Tito Tibone said it is pertinent to note that SBB approached the BSE to suspend its trading operations.

“SBB has no Finance Manager for the past six months. The candidate we have recruited is awaiting vetting by the Regulator. Meanwhile a backlog has built up in the processing of the company's accounts. Our consultant Accountants have been engaged to bring the accounts up to date. This has however taken longer than originally expected,” reads Tibone’s response. Botswana Guardian has established that, for this reason, accordingly SBB has approached the BSE to suspend trading activities until the situation is normalized.

Tibone has rest assured his clients that, “the company business is otherwise robust and sound as it should get over the hurdle within a short time.” The shares of the clients, Tsheole said are in the BSE capture system and can continue to trade at anytime and clients are at liberty to engage whichever broker is available from the other three.  He said, “those who have placed orders and are not yet executed will be refunded so that they place them elsewhere.” 

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