Minority shareholders feel sidelined on automated trading system
Minority shareholders of Malawi Stock Exchange (MSE)-listed companies have decried lack of information on the conversion of share certificates from paper to electronic, fearing some investors may be left behind.
The Reserve Bank of Malawi (RBM)-based Central Securities Depository (CSD) has started conversion of share certificates from paper to electronic towards the Automated Trading System (ATS) expected to roll out in July on MSE.
In an interview on Friday, a representative of the minority shareholders Frank Harawa said they feel MSE is being unfair in the way it is handling the process.
He said: “We are happy that the new system brings a number of advantages in terms of ease of trading as compared to the traditional way of trading, but less information has been provided on the same.
“Some two weeks ago, we had a meeting with the director of capital markets [at RBM] and the MSE where we voiced out our concerns on the process.
“We are not quite OK with the requirement of having a single broker for the transaction but also the idea to use limited identification for the registration.”
In an earlier statement, MSE appealed to the investing public to open securities accounts through a registered custodian or stock broker and deposit their share certificates in such accounts early to minimise inconveniences that holders may face when need to trade arises instead of waiting for the deadline.
The 13-counter MSE also encouraged investors in regularly trading counters to speed up the dematerialisation of the securities whose initial phase will run up to August 30.
