BSE launches Compensation Fund
The Botswana Stock Exchange ( BSE) has established a P 28 million Compensation Fund, as the bourse seeks to enhance investors’ confidence on the local financial markets.
The Fund is a rescue package for investors, established to grant compensation for financial losses suffered as a result of market participants’ failure to meet their contractual obligations to investors.
Crafting of the Fund, comes after authorities at the bourse developed an Investor Compensation Fund Rules that have been approved by NonBank Financial Institutions Regulatory Authority ( NBFIRA). “Our collective effort in strategic initiatives such as the Investor Compensation Fund paves the way for increased activity at the Botswana Stock Exchange in terms of increased liquidity, promotion of a diverse investor base, and profitability for the exchange as well as efficient mobilisation of financial resources to support economic growth,” said NBFIRA Chairperson, Motlalepula Kabomo. She said the fund will not cover default obligations, shortfalls, deficiencies or any other loss due to clearing and settlement of trade transactions by the Central Securities Depository of Botswana ( CSDB), which is provided for by the Settlement Guarantee Fund Rules. Kabomo said all market participants including the BSE, CSDB, Brokers ( members of the BSE), Special Members of the BSE and CSD participants,
among others will be required to contribute a sum of P5, 000 per annum towards the Compensation Fund. “Eligibility to claim is open to all retail investors that are able to prove a legitimate claim,” she emphasized.
Kabomo is confident that the Investor Compensation Fund paves way for increased activity at the BSE of increased liquidity, promotion of a diverse investor base, profitability for the exchange as well as efficient mobilisation of financial resources to support economic growth. Commenting on the Compensation Fund, BSE Chairperson, Tebogo Masire said the robustness and attractiveness of any stock exchange is hinged on its capabilities to innovate and adopt international best practises to remain competitive in the global, fast- paced environment. “This development is set to revolutionise our market as we join an elite number of securities exchanges that have adopted this practice in promoting investor protection,” said Masire.
January 2022, increased increased by by P P 14.3m 21.3m ( 5.6%), ( 9%), compared the corresponding year ended 31 January 2021. This,
and taxation by P 21.8 m ( 21.5%), to P 123.3 million for the year ended 31 January 2022.
January 2022, increased by 40% ( P32.5 million) January 2021 to P 114.3 million.
TURNSTAR BOTSWANA
The Botswana properties enjoy an occupancy rate of approx. 99% and recorded a a P P 12.4m 19.5m ( ( 8.7%) 14%) increase in rental revenues compared to the prior year.
The Botswana properties also recorded substantial fair
value gains.
MLIMANI CITY TANZANIA
The retail mall continued to operate at optimum capacity. The conference centre income recorded encouraging income growth. The vacancies in the Com
Tanzanian subsidiary recorded substantial growth in tions.
DUBAI
The investigation into the Dubai transactions has been completed. The report was adopted by the Board and submitted to the Botswana Stock Exchange.
The Dubai property recorded a P 72.6m impairment
charge in fair value from the prior year reporting date.
Group
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• Group earnings per share ( EPS) is 18 thebe per
share, up from 14 thebe per share, in 2021.
• Group Tax of P13.4 million comprises wholly of de
ferred tax, calculated in accordance with IAS 12.
• posed
FINAL DISTRIBUTION
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The Company paid out an interim distribution of 9t per linked unit, for the half year ended 31 July 2021.
- tribution of 9t per linked unit, based on the results for the year ended 31 January 2022.
Thus, the total distribution for the year ended 31 January 2022 will be 18t per linked unit.
of Debenture interest of 7.468t and dividend of 1.532t per linked unit, to all registered unit holders as at the
close of business on 1st June 2022.
Ex distribution date Record date for participation
Date of payment of dividend
In accordance with requirements of the Income Tax Act, withholding tax shall be deducted on the payment of interest and dividends paid to residents and non – resident holders of link units who are not exempt from the withholdings tax provisions of the Act.
P K Balopi Chairman
30th May 2022 1st June 2022
9th June 2022
G H Abdoola Managing Managing Director Director