REQUEST FOR COMMENTS ON THE DRAFT INTERNET TRADING SERVICES REGULATIONS
NOTICE TO STAKEHOLDERS
1. The Non-Bank Financial Institutions Regulatory Authority (Regulatory Authority) advises that the Securities Act, 2014 (“the Act”) commenced on April 1, 2017 following the publication of the Statutory Instrument No. 35 of 2017. The purpose of the Act is to consolidate and amend laws relating to the regulation and supervision of the securities industry in Botswana.
2. The definition of securities under Section 2 of the Act includes financial instruments which by their nature can be accessed, offered or marketed through electronic media and the internet. Such securities include, inter alia, vanilla and complex securities such as:
i) Rights, options or interests in respect of securities such as shares, bonds, certificate of deposit or depository receipts or treasury bills, debentures or shares in a company.
ii) Derivatives
iii) Futures or options on any commodity, property, goods, index, interest or other rates or currency.
3. Secondly, the Act brings into the Regulatory Authority’s regulatory and supervisory powers securities institutions as defined in Section 2 of the Act, which could ordinarily conduct their business operations through the internet.
4. It will be further noted that the Act does not restrict itself to the regulation and supervision of listed securities, therefore bringing the regulation and supervision of securities which are exchanged Over The Counter (OTC) under the Regulatory Authority.
5. The Regulatory Authority has drafted the “Internet Trading Services Regulations” in order to bring order into the trading of OTC securities over the internet. All concerned stakeholders are hereby requested to access the draft regulations on NBFIRA’s website at www.nbfira.org.bw and submit their comments by Friday 16th June 2017 to the following address;
Director - Capital Markets
NBFIRA
3rd Floor Exponential Building
Plot 54351 New CBD
Private Bag 00314
Gaborone
Or by email to jwhite@nbfira.org.bw.
Sriram Gade (Mr)
ACTING CHIEF EXECUTIVE OFFIVER
06 June 2017
