INFORMATION FOR INVESTORS

The Regulations provide for severe punishment of any Members and employees of the Stock Exchange who violate Regulations relating to the protection of investors.

Furthermore, the Stock Exchange Law provides for the establishment of a Compensation Fund called 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 faces financial difficulties in meeting his obligations to its principals or to third parties.

In order to prevent insider dealing,  a law entitled "Insider Dealing Law" in in force, to restrict to the minimum any incidences of "insider dealing".

Short selling at the CSE is prohibited. A transaction cannot be cleared and settled unless valid certificates of ownership are provided (or certain other documents accepted by the Stock Exchange) in order to prove the ownership of securities.

The Cyprus Stock Exchange prepares the CSE-All Share Index, together with the following sectoral indices:

• Banks
• Approved Investment companies
• Insurance companies
• Industrial companies
• Tourist companies
• Commercial companies
• Other companies

These indices are issued daily by the Cyprus Stock Exchange on the basis of the average closing prices of all fully paid shares that are listed on the CSE.

The basis of the index (100) is the 29th of March 1996, opening day of the Cyprus Stock Exchange.

As from 2nd January 1998, by a decision of the CSE council, commissions are freely negotiable between the brokers and their clients and there is no fixed minimum commission. However, in the case that no agreement (written or oral) is made, between the broker and his/her client, the following rates shall apply:
(1) for trading in shares

• CY£1 to CY£1.000                      1,25%-1,50 %
• CY£1.001 to CY£100.000           1,00%-1.25%
• CY£100.001 and above                0.30%-1.00%

(2) for bond trading                                  0.50%

In addition to commissions, all trades are charged at a 0,1 per thousand, payable only by the buyer. There is also a transaction charge collected by the CSE that is 0.05% on the consideration for every sell and every buy

According to CSE Regulations, Members must complete every transaction at least three days after the transaction has taken place.

Members submit to the Exchange the necessary documents and then these documents are delivered to the company Registrars by the CSE. The company has the obligation to issue the new certificates for the buyer(s) and deliver to the CSE within five working days. Following this, the member has the obligation to collect the certificate from the CSE and deliver it to the buyer. As a result the of the above procedure, the buyer is able to have his certificate within 8 days from the day on which the transaction takes place. If the investor wishes to sell before the nine day period, he can do so on the strength of a certificate provided by the member, certifying that the investor is the owner of the securities sold. Fines are imposed on the responsible party when the above timetable in not complied with.

The Exchange is also in the process of "demateralization" through the establishment of a central registry which is expected to be fully operational in 2000.  

There are certain conditions, imposed by the Central Bank of Cyprus, in respect of foreign investment. Cypriot immigrants are treated in a different way compared to foreign investors. The following rates apply:

The process of acquiring shares by foreigners is simple enough and it is more or less similar to that of the locals.

Payment for any transaction by foreign and Cypriot immigrants alike should be made through external accounts.

10.10 am -12.00 p.m., local time (GMT+2).