The Cyprus stock exchange commenced its operations in 1996. At present (June 1999) 121 securities issued by 52 companies are listed on the exchange. These include shares, rights, warrants, corporate bonds, government bonds and treasury bills. Nineteen stockbroking firms are members of the exchange. The total market capitalisation is currently (June 1999) CY£ 3,4 billion (US$ 6,8 billion approx.)
In May 1999, the CSE successfully implemented a new electronic screen-based trading system which not only facilitates the work of the members and extends the dealing time, but also increases the transparency of deals.
Commissions at the exchange can be negotiated between members and their clients. In the absence of an agreement the following rates apply:
|
Transactions Value |
Commission Rate |
|
CYP1,00 to CYP1,000 |
1,25 percent |
|
CYP1,001 to CYP100,000 |
1,00 percent |
|
CYP100,001 and above |
0,3 percent |
The commission for bond trading is 0,5 percent. In addition to commissions, transaction fees for local securities are paid by the buyer, currently at the rate of 0,5 per thousand. The transaction fee for foreign securities is 0,25 per thousand, again payable by the buyer.
The Stock Exchange Law provides for the establishment of a compensation fund called the "Joint Compensation Fund Securing Stock Exchange Transactions". The aim of this fund is to protect investors in the event of financial collapse, or whenever a member of the exchange is unable to meet his obligations to its principals or to third parties.
The process of acquiring shares by foreigners is simple enough and is more or less similar to that applicable to locals. Payment for any transaction by foreign and Cypriot immigrants alike should be made through external accounts.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances from a local lawyer or accountant.
