Malawi Securities Exchange Information

Structure and Governance

The Malawi Stock Exchange Limited (MSE) came into existence in 1994 and started equity trading in November 1996 with the National Insurance Company Limited (NICO)’s listing. The MSE operates under the Capital Market Development Act 1990 and the Companies Act, 1984.

Trading System

The MSE uses a service desk automated trading system. Trading of equities is conducted during the hours of 10:30 a.m. and 1:00 p.m., Monday through Friday.

Schedule of Minimum Commissions

Stocks of Government, Municipalities and Statutory Corporations (Bargains up to MWK 100,000 considered money): a charge of 0.5% on the first MWK 5,000; a charge of 0.375% on the next MWK 15,000; and, on the next MWK 80,000, a charge of 0.25%.

Local Registered Stocks and Treasury Bills (Bargains over MWK 100,000 consideration money): a charge of 0.125% on the first MWK 250,000 and a charge of 0.0625% on the next MWK 250,000.

Treasury Bills – (Treasury management services Consideration Money): a maximum of 2% of the discount rate from 30-day maturities. Maturities of 61, 91 and 182 day maturities are subject to negotiation.

Debentures, loan stocks, secured, unsecured and convertible stocks are subject to a 1% commission. Stocks Dated under Six Years (bargains over MWK 100,000 consideration money) are subject to a 0.25% commission.

For ordinary and preference shares, a commission rate of 2.0% applies up to MWK 50,000. A commission rate of 1.5% applies for MWK 50,001 to 100,000. A commission rate of 1.0% applies over MWK 100,000.

Clearing and Settlement

The clearing and settlement process ensures the transfer of ownership of the securities traded on the MSE from the seller to the buyer and the transfer of funds for those securities from the buyer to the seller. The MSE uses a trade (T) + 7 settlement cycle.

Market Holidays

Holiday Date
New Year’s Day 1 January
John Chilembwe Day 15 January
Martyr’s Day 3 March
Good Friday Varies
Easter Monday Varies
Labour Day 1 May
Kamuzu Day 14 May
Independence Day 6 July
Eid al-Fitr Varies
Mothers’ Day 15 October
Christmas Day 25 December
Boxing Day 26 December