Background

Maseru Securities Market (MSM) is an initiative of the Government of the Kingdom of Lesotho which is executed by the Central Bank of Lesotho. The MSM is therefore a non-profit making institution created to facilitate the centralised trading of financial securities in the Country. This initiative is part of a wider financial sector reforms aimed at improving financial sector in the country and to encourage the wider share ownership of previously privatized and majority of the companies in Lesotho and facilitate raising of medium to long-term capital.

The market was established by law in 2014 through the publication of Capital Markets Regulations of 2014. These regulations and other regulatory instruments provide for the operation of a market that is fair, orderly, secure, and transparent. It provides for investor protection and the licensing of all market players. The fundamental objective of establishing this platform is to enable trading of financial securities in a secure environment that enhances confidence while on the other hand not too strict to suffocate market development. The MSM is a registered legal entity, and, in common with international practice, a philosophy of self-regulation by the markets is practiced and shall be applied to the MSM.

Taking into account the current economic situation in Lesotho, our objective going forward is directed towards ensuring an efficient market that provides variety of opportunities for companies and investors (individual and institutional) to raise capital and meet various financial needs of every stakeholder. Lesotho is a country seeking sustainable economic growth, and the introduction of the securities market and reforming domestic financial sector augur well with this vision.