The Mozambican stock exchange (BVM – Bolsa de Valores de Moçambique) plans to launch a technological platform called Central de Valores Mobiliários (CVM) to dematerialise securities, announced the head of BVM, Anabela Chambuca.
By introducing a digital system to record shares, bonds and other securities in electronic format, BVM follows the trend in most international stock exchanges which have been abandoning physical securities registration.
“The service will cover the risk of misplacement, loss and falsification. We believe its creation will encourage limited liability companies, even those not quoted on the exchange, to have securities registered on the platform,” Chambuca said during the ceremony to present the CVM.
Besides cutting red tape in services responsible for issuing securities, the electronic system should also eliminate costs associated to physical registration, for example by enabling faster dividend payments to the respective holders.
Chambuca said the CVM may begin operating by the end of this June and will cost the institution about 13 million meticais (nearly US$412,000).
Ten companies are currently quoted on the BVM: Cervejas de Moçambique, Companhia Moçambicana de Hidrocarbonetos, Banco Comercial e de Investimentos, Banco Internacional de Moçambique (Millennium bim), ProCredit, Empresa Nacional de Hidrocarbonetos, Moçambique Celular, Petróleos de Moçambique, Standard Bank and Moza Banco. (macauhub)