DAR ES SALAAM STOCK EXCHANGE OVERVIEW OF ACTIVITIES

1. Company Overview 
The Dar es Salaam Stock Exchange was incorporated in 1996 as a company limited by guarantee without a share capital. It became operational in April, 1998. The DSE is a non-profit making body created to facilitate the Government implementation of the reforms that including to encourage wider share ownership of privatized and all the companies inTanzania. The DSE is governed by a Governing Council, which consists of 10 members drawn from 4 constituencies of Institutional investors, Dealing members, Professional bodies and general public representative.

2. DSE Functions

• Provides a Market for Listed Securities
  The DSE provides liquidity by way of providing continuous market for securities whereby securities are exchanged for cash. It enables those wishing to join or leave the listed companies to do so.

• Facilitate Price Discovery
  The price mechanism ensures that buyers and sellers can do so at a price determined by demand and supply forces. Neither the Exchanges nor brokers determine the prices of the securities traded on Stock Exchanges

• Facilitator of Transparency
  Through the disclosure requirements envisaged in the DSE Rules, the Exchange ensures that LDM's and Listed Companies do abide by the said Rules both during offer period and after being listed. The Exchange has in place some enforcement mechanisms outlined in the Governing Rules of the Exchange.

• Facilitates Privatization and Wider Ownership of Resources
  The DSE has facilitated and continue to facilitate the privatizations of the some parastatal organizations which were hitherto under the control of the Government whose shares have been sold by the Government through DSE.

• Facilitates Raising of Capital for Enterprises
  The DSE facilitates companies to sell new shares/bonds at better prices which lower cost of capital to such companies and improves their chance of increasing operating profits.

• Creation of Wealth Through Investing in Listed Securities
  Shares listed at DSE have performed very well above the inflation rate when compared with bank deposits. Shares are not passive store of value like banks deposits. Bank's deposits do not increase in size during the lock-in period but shares do increase in value over time.

• Contributes to Cultural Transformation of Tanzanians
  At the time the DSE was established only a handful Tanzanians could claim to be knowledgeable with stock market operations. Operationalization of the DSE has contributed substantially towards public enlightenment which has caused a number of Tanzanians to invest in listed companies as a result of this transformation.

3. Trading Activities
The Exchange is open for 5 days in a week. The trading days are from Monday to Friday starting from 10.00 am to 12.00 noon.
The Exchange provides a platform for trading of securities through the use of an Automated Trading Electronic System which matches bids and offers using an electronic matching engine. Brokers converge at the trading room and post their orders in the Automated Trading System (ATS). Currently, the ATS operates on a local area network (LAN). In the near future plans include operation in a wide area network (WAN) which can be accessed by brokers even out ofDar es Salaam

4. Clearing & Settlement
DSE facilitates clearing and settlement of securities through an electronic Central Depository System (CDS). This system also does the registration of changes of ownership of securities electronically. The CDS facilitates the delivery of securities in time for the settlement of trades to be implemented within five working days (T+5). The CDS has been upgraded in order to match with the ATS. It is expected that clearing and settlement cycle will soon move to T+3.

5. Market Surveillance
The DSE conducts surveillance both on-line and on-site; to detect possible market malpractices such as false trading, market manipulation, insider dealing, short-selling, etc. The CEO of the DSE has the authority to suspend at anytime offers and bids that are deemed to be suspicious.

6. Investor Protection
To ensure investors' protection, DSE maintains a fund known as the Fidelity Fund. The Fund was established to compensate investors who suffer financial loss arising from fraud and misappropriation of funds by Licensed Dealing Members (LDMs)

source: voicesoftanzania.com