Membership

Eligible Entities
Members shall be companies or corporations carrying on or incorporated or established in Rwanda with the primary object of carrying out the business of dealing in securities and individuals shall not be entitled for Membership;

Net-worth Requirements
Have satisfied or will satisfy upon admission, all the financial requirements prescribed by RSE Rules. These shall comprise of Rwf 10 million comprising of the minimum paid up capital Rwf 3 million plus free reserves (excluding revaluation reserves, capital reserves and specified reserves, and value of Membership / Dealership / deposit with RSE/ other stock exchanges) less accumulated losses, if any. Minimum funds committed for RSE operations should be Rwf 10 million.

Minimum Education Qualifications-
Corporate – University or College graduate. At least 1 Chief Executive Officer must have a university degree or passed examination approved by RSE.

Citizenship
Corporate –Company should be incorporated or registered in Rwanda.

Experience
Minimum of 1 Director should posses a minimum of 2 years experience in capital market / portfolio management / investment consultancy/advisory.

Trading Infrastructure 
Members shall have at least the minimum prescribed infrastructure, which shall include:

• An appropriate office space
• Direct telephone connections
• Computer equipment and network with appropriate software to run business of stock broking

Selection Procedure
Prospective Members shall submit an application to the Rwanda Stock Exchange Chief Executive Officer of RSE in the prescribed form.

Membership selection shall be at the sole discretion of the Board of RSE.

The capital market is further divided into primary and secondary market. The primary market is the market for securities sold for the first time. Primary Market Transaction Process:

• The issuer decides to raise capital through the stock exchange
• Issuer appoints advisors sponsors/co. registrar/fiscal agents/sponsoring brokers
• Issuer prepares draft prospectus or information memorandum
• Issuer discusses the offer document with RSE and finalises the prospectus or information memorandum
• The issuer applies to RSE to list its securities on the market
• The issuer states the offer period and offers securities to the public
• Public investors subscribe to securities during the offer period
• Offer closes and publication of allotment results
• Issuer is admitted to list on RSE

The secondary market is the market where already existing securities are bought and sold through licensed brokers. Secondary market transaction process

• • Buying client or selling client approaches stockbroker, opens an A/C and pays for an order; either provides funds or gives securities to broker and broker acknowledges
  • If buying stockbroker has securities or sell order for securities sought or, required at ordered price, broker sells directly to the client
  • If buying broker has no selling orders for securities and or price given by sellers, the broker contacts the other brokers seeking securities required.
  • Buying stockbroker and selling stockbroker attends trading sessions at the trading floor. All stockbrokers attend the session and all report:
    • Traded securities – prices, volumes and securities
    • Buying orders outstanding positions –price, volumes and securities
    • Selling orders outstanding positions –price, volumes and securities
    • RSE compiles market report and distributes to the market and Public through the media.
    • On settlement day, the CSD (Central Securities Depository) clears the trades for settlement of securities against funds between stockbrokers and the change of ownership takes place at T+2. The CSD is under the Central Bank of Rwanda.