Botswana Stock Exchange Limited (BSEL) has announced intentions to revise the local bourse’s equity brokerage commission, following its seemingly biased increase in April 2016.
Indication are that BSE’s equity brokerage commission ceiling of 1.85 percent is one of the highest compared to markets such as Dar Es Salaam Stock Exchange, Stock Exchange of Mauritius and Nairobi Stock Exchange, among others.Thapelo Tsheole, BSEL Chief Executive Officer said the stability of turnover has weakened since the brokerage commission was increased.
He said the development has hindered unlocking value from the investment and the initiatives of the Exchange with respect to the development of the market. “The BSE is not entirely against increasing fees, but is of the view that these increments have to be substantiated by considerable value add from the service providers and should follow an objective and consultative framework that eliminates any perception of conflict of interest particularly as that was the perception at the time the BSE was a mutual entity,” said Tsheole. Sharing BSEL’s concerns on a position paper dubbed: ‘Paper on Revision of the Equity Brokerage Commission’, Tsheole said the benchmarking exercise which was undertaken to review the brokerage commission in 2016 relied on information provided by an interested party - a broker.
He added that the exercise could not have provided an independent and objective analysis for the BSE to make a well informed decision. “The information presented by the broker was not complete and comprehensive and from that end, it selected higher ends (ceilings) of the brokerage commissions to give an impression that brokerage commission in Botswana is very low compared to the chosen markets to support the introduction of the floor.”
The position paper further notes that in most markets, brokerage commission is on a sliding scale, therefore the scales are such that brokerage declines as the value of the transaction increases. “In a few markets, brokerage is negotiable within certain ranges and in some market it is flat,” said Tsheole. BSEL is soliciting for views from brokers, asset managers and all stakeholders, ahead of revising the brokerage commission.
Botswana Stock Exchange Limited (BSEL) has submitted names of its new board of directors to Non Banking Financial Institutions Regulatory Authority (NBFIRA) for vetting.
BSEL Chief Executive Officer, Thapelo Tsheole without divulging the names of the incoming board, said the regulator is set to conclude the process by end of September. BSEL is regulated under NBFIRA “Eight are independent and two are non-independent,” said Tsheole highlighting that the development is part of reengineering BSEL, now a public company.
Tsheole is one of the non-independent directors by virtue of being the exchange’s CEO and the other non-independent director is a broker.He said once the new board is approved by the regulator, BSEL will revisit its strategy to incorporate the aspect of corporatization.“Our target is to move fast past the strategy post demutualization,” said Tsheole who is upbeat of the recent demutualization.
“The good thing is that it (demutualization) opens up to a lot of opportunities of companies that want to list on demutualised bourse,” said Tsheole at the sidelines of the 4th opening bell ceremony at BSEL headquarters in Gaborone.BSEL joins 28 other stock exchanges across the globe that has undergone the process.On operations, Tsheole said the exchange continues with a lean workforce and more efforts will be on business development initiatives, to improve both equity on the bourse and profits for BSEL.
Tsheole also highlighted that two or more listings should be expected on the bourse before the year end, while Botswana Building Society (BBS) has started trading this week, registered on the Serala over the counter (OTC) board, where its stock is currently traded amongst limited
Kgatleng BTC Premiership outfit Mochudi Centre Chiefs have appointed the Chief Executive Officer of the Botswana Stock Exchange, Thapelo Tsheole as their team president. Tsheole, who commands an illustrious background in corporate governance, is expected to contribute in propelling the Kgatleng club to new heights in both governance and strategy.
Tsheole joins Magosi at a time when the team is seeking to revive their fortunes following a difficult 2017/18 season, both financially and in the pitch. In an interview this week, Magosi chairman Raymond Tsheko confirmed that they appointed the BSE Chief as president.
Tsheko described Tsheole as a champion of corporate governance and strategy. Tsheko further explained that Tsheole who champions community projects is expected to advise the team on strategic decisions in the future.
“We seek to promote ethical leadership and maintain a sustainable model for the team. There is need to raise the bar high and achieve what we have set out to do in football,” Tsheko said.
The Magosi chairman said the appointment of the Corporate governance guru will ensure that the team is run well and complies with statutory requirements. “We must further ensure that people who run the club are of a good standard.” Tsheko further explained that there is need to ensure that the organisational makeup of the club is inclusive to stakeholders.
Commenting on the matter this week, Tsheole said his recent appointment to Magosi comes as a voluntary service to the community. “It was not the first time I was approached to be the team president. They have been approaching me for the past two years but this time I agreed”.Furthermore. Tsheole explained that he will not be involved in the day to day operations of the football team. “I am just a ceremonial figure. “
The BSE chief said he will assist in providing a higher level of policy and vision for the Kgatleng team. Tsheole said he will use his expertise in the corporate world in an effort to help the team move forward. The Mochudi native says he has been supporting Magosi from his early days.
I have played for the Centre Chiefs development team in the Chappies league a long time ago. I later went on to play for another team in the National First Division in Gaborone.
Four years after the Botswana Stock Exchange (BSE) kicked off its demutualization process, the bourse has finally registered as a public company.
Thapelo Tsheole, BSE Chief Executive Officer announced to media this week that all processes have been completed with government being the major shareholder of the new company Botswana Stock Exchange Limited.
“We have demutualised into a public company with various stakeholders,” said Tsheolo, adding that the process started with the formulation of the BSE Transition Act, a piece of legislation enacted in 2015 to guide the process.
Tsheole said though the process took four years, he considers the timeline short compared to other jurisdictions like Kenya and South Africa where it took 13 and five years respectively.
“It was a painful and emotional process; the past two months had a lot of work.”
Under the new company, following lengthy valuing of government’s contribution and the brokers proprietary rights to trade on the bourse, government emerged with the largest chunk of 81.3 percent, Motswedi Securities 4.3 percent, Imara Capital 5.7 percent and African Alliance 2.8 percent.
As a new company, BSE will now follow the Companies Act and stop being guided by the BSE Act of 1995, allowing two non-independent directors and seven that are independent to sit on its board, opposed to having six brokers in the board and three appointed by government.
“It takes out the potential conflict of interest or perceived conflict of interest,” said an optimistic Tsheole, adding that the new development will enable the bourse to attract capital in some of the sophisticated investors who are skeptical about conflict of interest in non-demutualised stock exchanges.
“Now we operate as a full company with clear motives. We are going to be following proper corporate principles,” said Tsheole, citing that the company already harbours plans to list on the bourse subject to the major shareholder agreeing.
“We are going to re-value the company and possibly persuade government to offer some of its shares as this is a practise in other private entities
Though brokers within the BSE were rumoured to have been against the demutualization, Tsheole believes the development will give BSE credibility, highlighting that brokers cannot own more that 20 percent shareholding.
Over the years, since 1995 to 2012 when the BSE started posting profits, government has invested heavily in the bourse to amounts reaching 75million pula.
The Botswana Stock Exchange (BSE) in collaboration with the Ministry of Youth, Sport & Culture (MYSC) hosted a successful health fitness and investment drive this past Saturday at the National Stadium.
Fitness fanatics and amateurs were taken through their paces by different trainers.The memo for the day was to burn as much fat as one could. The event was held under the theme, “Investing in your Wealth and your Health.’’ Graced by dignitaries such as Minister Thapelo Olopeng and the head of the BSE, Thapelo Tsheole, the event began with a marathon in the morning. Participants also had an opportunity to be drilled on Cardio Box (by Sylvester Nyalungu, Shakes, Brock Miyagi and Thubuka), Kata box by Chyna and Tebogo, Hilo aerobics by Bicky Motingwa and Kagiso, Zumba aerobics by Tiyapo Graves and Nametso as well as fun dance by Bera.
All the trainers meant serious business and ensured that they left no stone unturned. By the end of the event, those who had not been going to gym were nursing stiff muscles and their bodies were aching all over. Those who have been avoiding gym were motivated to return and get their bodies back into shape. The event came to a thrilling end at midday with a relay marathon that pitted the participating organisations against each other. MYSC had an ace up its sleeve as it fielded Olopeng on the last lap of the relay but unfortunately for his team, they did not taste victory.
Far Property which launched in the Botswana Stock Exchange (BSE) this Wednesday is expected to boost the market capitalisation in the local bourse.
BSE Chief Executive Officer, Thapelo Tsheole said yesterday at the launch that Far listing brings some level of diversity into the market by increasing the number of property companies listed in the BSE. “It also brings diversity within the sector by being the 6th property company and operating within the space it is operating in. It’s a good development mainly by the two shareholders, Farouk Ismali and Ramachandran Ottapathu by developing the market and this country- this gives citizens to enjoy the wealth being generated by the brains of these two gentlemen, it’s a real economic empowerment,” shared Tsheole.
The youthful CEO said this is a very exciting time for the BSE, “as it brings the market capitalisation to more than P5.4billion because the property sector was 11 percent of the domestic market capitalisation of the P49billion, now it will be over that. We’re looking forward to increasing the turnover which I think in April was very low but on year-to-date basis we have traded close to P816million slightly less than a billion. Our aim is to surpass the P3billion reached last year and with coming into the market of companies such as Far Properties, we’re looking to increasing the present daily turnover of P9.8million as of end of April.”
The number of listed companies in the domestic board will increase from 23 to 24 and this is the second listing in a year following that of BTCL beginning April. “It might seem as a small number but majority of stock exchanges in Africa have zero/nothing. We are excited because we seem to be taking at least more than one. This will bring into addition the total number of listed in the BSE to 34, 24 domestic and 10 foreign companies, 38 bonds, four exchange traded funds,” he added.
He said that Far’s listing was testimony that listing is not a bad thing, because if it were, Ram and Farouk would not be coming for the second time in the BSE. In fact listing is a good thing to do because companies listed in the BSE are the cream of the Botswana market those listed in the stock exchanges in the world are some of the best in the world. “Welcome to the crème de la crème of Botswana’s corporate companies.”
For his part, one of the Directors and a major shareholder, Ottapathu said “It was not a humble beginning. It was all scattered companies in 2010 and we consolidated them into a group company. From there the growth was fast, we could go to the valuation level of a billion plus in five years. The board members then gave it the green light to go on the stock exchange.”
Ram shared in passing that, “there is more listing to come before I retire. Watch the space.” However, the Choppies group CEO indicated to BG Business that there are no plans yet for the newly listed entity to list in the international stock exchanges.