SEM Announces Major Reforms to Boost Global Competitiveness

The Stock Exchange of Mauritius (SEM) is set to significantly overhaul its operations by extending trading hours and shortening its settlement cycle, a move designed to align the nation’s financial marketplace with international standards.

Starting in April 2026, subject to regulatory approval, the continuous trading session will be extended by one hour. The market will open 30 minutes earlier at 9:30 a.m. (GMT+4) and close 30 minutes later at 3:00 p.m.

Phased Expansion and Global Access

This initial extension is part of a two-phase strategy to enhance market liquidity and provide better access for international investors operating across various time zones.

Following the first phase, the SEM and the Central Depository & Settlement Co. Ltd (CDS) plan to further extend the session to 3:30 p.m. within six months.

Shifting to T+2 Settlement

In a secondary major reform, the SEM and CDS will transition from a T+3 to a T+2 settlement cycle within the next year.

While the current system has maintained a flawless record of zero settlement failures, the shift is deemed necessary to:

• Reduce counterparty risk and improve operational efficiency.
• Enhance liquidity for both securities and cash flows.
• Optimise capital utilisation to meet growing investor expectations.

Operational Impact

The move to a faster settlement cycle will demand tighter coordination between brokers, investors, and both local and international custodians.

To ensure success, trade confirmations must be completed more rapidly. Crucially, payments must be settled to ensure funds are available no later than 10:30 a.m. (MUR) on the designated settlement day.

A Strategy for Modernisation

These reforms represent a broader ambition to modernise and internationalise the Mauritian financial ecosystem.

By strengthening its range of services, the SEM aims to bolster its position as a competitive player within both regional and global financial markets.

Source: African Markets