Instruction No. 2/97 on the Authorization of the Regional Stock Exchange for Securities

WEST AFRICAN MONETARY UNION
REGIONAL COUNCIL FOR PUBLIC SAVINGS AND FINANCIAL MARKETS

INSTRUCTION NO. 2/97 RELATING TO THE AUTHORIZATION OF THE REGIONAL STOCK EXCHANGE FOR SECURITIES

Having regard to the convention of July 3, 1996 establishing the Regional Council for Public Savings and Financial Markets, hereinafter referred to as the Regional Council,

Having regard to Article 21 of the annex to said convention,

Having regard to Decision No. 001/97 of the Council of Ministers of the West African Monetary Union in its session of November 28, 1997 adopting the General Regulation relating to the Organization, Operation and Control of the regional financial market of the Union, hereinafter referred to as the General Regulation,

Having regard to Articles 12 to 19 of said General Regulation,

Having regard to the decision of the Regional Council in its session of November 29, 1997,

The Regional Council adopts:

Article 1: The Regional Stock Exchange for Securities is authorized, upon its approval by the Regional Council, to exercise throughout the entire territory of the States of the UMOA the activities of listing and quotation of securities, as well as the dissemination of stock market information.

Article 2: The approval file is sent to the Regional Council. It must include the following documents:
a) the statutes of the public limited company which must be constituted under the legal form of a public limited company and have its registered office in one of the States of the West African Monetary Union. b) the amount and distribution of its share capital as well as the identity of its shareholders, c) the composition of its governing bodies, d) the list of corporate officers and their criminal records, e) the description of the technical and human resources with which the company is equipped,

f) the General Regulation applicable to stock market operators. This must contain provisions intended to:

• prevent any maneuver, omission, fraudulent practice or price manipulation emanating from a market user;
• promote principles of transparency, fairness, loyalty and sincerity in stock market negotiations;
• optimize the functioning of the financial market;
• protect investors and, more broadly, the general interest of the entire market by setting up a surveillance structure and a Market Guarantee Fund;
• sanction any failure to comply with the provisions of its General Regulation as well as any transgression or infringement thereof by SGI (Securities Intermediaries).
  g) The identity and criminal record of the person(s) designated to perform the functions of head of market surveillance, h) The written commitment to make available to the Regional Council in real time all information allowing verification of the normal course of transactions, i) Any other document that the Regional Council deems necessary.

Article 3: The Regional Stock Exchange for Securities must inform the Regional Council of modifications concerning the characteristic elements of its situation appearing in the initial approval file.

Article 4: The approval granted to the Regional Stock Exchange for Securities is subject to the payment of a sum whose amount is fixed by instruction of the Regional Council.

Article 5: The approval of the Regional Stock Exchange for Securities is the subject of an opinion published in the official bulletin of the stock exchange.

Done at Ouagadougou, on November 29, 1997
For the Regional Council
The President
L. NAKA
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