Local brokerage firm Stockbrokers Botswana has been suspended by Botswana Stock Exchange (BSE) from trading for an indefinite period. BSE Chief Executive Officer Thapelo Tsheole told reporters on Wednesday morning that the decision to suspend Stockbrokers for an indefinite period was made on Tuesday night after the firm was found to have breached some of the conditions which were not disclosed. According to Tsheole, in a stock market environment, a member can be suspended from trading for a number of breaches that range from non-compliance, operational, administrative and governance issues. It is not yet clear which of these conditions Stockbrokers might have flouted.
Tsheole said they – together with the regulator NBFIRA - have launched an investigation into the matter and would share the findings once the process is complete which will also guide on what further action to take against the accused company, which may include revocation of the trading license. Following the suspension of Stockbrokers from trading, the BSE has advised account holders that their holdings are still intact and they should approach any of the three BSE brokers (Imara Securities, Motswedi Securities and African Alliance) to transfer their accounts from Stockbrokers Botswana.
Investors, who have already placed orders and paid for shares upfront, have been advised to approach the suspended company to get a refund and go to one the trading three firms mentioned above. Tsheole said they have in the past suspended other brokers from dealing. Efforts to reach Stockbrokers were unsuccessful as the company management were said to be in a meeting the whole Wednesday afternoon.