28 Jul 2014

The non-bank financial sector in Botswana presents a critical role in the economy of the country, hence reforms in the past by government to streamline the regulation of the sector

Presenting the Securities Bill in Parliament on July 24, the Minister of Finance and Development Planning, Mr Kenneth Matambo said such reforms included the establishment of the Non-Bank Financial Institutions Regulatory Authority (NBFIRA).

Mr Matambo further said the Securities Bill was intended to be the law that would provide regulation over financial securities and securities business in Botswana, and will cover securities such as shares, stocks, bonds and depository receipts among others.

He said the bill had a total of 59 clauses, which deatl with a variety of issues such as basic licensing provisions, regulating of off-market transactions and the carrying on of business in unlisted securities as well as increasing the level of protection given to investors.

Some of the objectives of the bill he said included, among others, to provide for the consolidation and amendment of the laws relating to the regulation and supervision of the financial securities industry, to make provision for the regulation and supervision of securities institutions and markets.

The bill also sought to prohibit insider trading and other forms of market abuse as well as to make provision for matters connected with the foregoing.

Contributing to the bill, the Member of Parliament for Maun West, Mr Tawana Moremi said it will ensure that people who have inside information do not use it to their advantage before such information reaches the rest of the citizenry, which he said created unfair competition.

He said the Bill should also focus on companies such as parastatals which are not listed on the Botswana stock exchange, and that the minister should consider imposing criminal sanctions as civil liabilities are easy to pay off.

The MP for Tati West, Mr Charles Tibone said even though he supported the Bill, it should have been further streamlined as some areas in the industry have more than one regulatory body.

He said such streamlining will help avoid duplication. Mr Tibone also complained that the financial securities industry has a lot of diversification in as far as economic diversification is concerned.

He however, said ordinary Batswana lack even basic information on this subject, which makes them miss on available opportunities.  He therefore called on more education to be done on the subject. ENDS