Notice No. 03/GGBM/99: Fees and Commissions for Over-the-Counter Transactions

NOTICE NO. 03/GGBM/99 Fixes the fees and commissions to be charged in the context of Realization of transactions in the over-the-counter market

The Bank of Mozambique, in the exercise of the competence conferred upon it by Article 96 of the Securities Market Regulations, approved by Decree No. 48/98, of September 22, determines:

Article 1 Object This notice establishes the fees and commissions due for the realization of operations on securities, in the over-the-counter market, and also indicates the entities that must bear the costs and those from whom these constitute revenue.

Article 2 Fee for the realization of stock exchange operations

1. For the realization, on any securities, of operations outside the stock exchange, whether gratuitous or onerous, the fees of purchase and sale established in this article are due, payable respectively by the selling financial intermediary, who will obligatorily pass them on to their principals.

2. The fee referred to in this article constitutes revenue for the Bank of Mozambique.

3. The fee for the realization of over-the-counter operations is of the following amount: a) 0.5 per mille of the value of the operation, in operations carried out on national and foreign public funds and securities equated to them; b) 0.8 per mille of the value of the operation, in operations carried out on bonds; c) 1.2 per mille of the value of the operation, in operations carried out on any other securities.

4. When, under the provisions of paragraph 2 of Article 72 of the Securities Market Regulations, securities admitted to quotation on the stock exchange are traded in the over-the-counter market, the fees referred to in the previous paragraph, applied to these transactions, will be increased to three times their value.

5. For the purposes of the provisions in paragraphs 3 and 4 above, understand by value of the operations: a) In the case of transfer for consideration, the highest of the three following values: declared value of the operation, value of the operation, value of the operation at the nominal value of the securities or, if the securities are quoted, value of the operation at the last closing price on the stock exchange; b) In the case of transfer for no consideration, the highest of the two following values: value of the operation at the nominal value of the securities or, if the securities are quoted, value of the operation at the last closing price on the stock exchange

6. The payment of the fees must be made by crossed cheque drawn to the order of the Bank of Mozambique, delivered together with the weekly information regarding the operations carried out referred to in Article 95 of the Securities Market Regulations.

7. Financial intermediaries authorized to carry out operations in the over-the-counter market are responsible for the punctual payment of the fees related to the operations in which they intervene, on their own account or for clients, independently, in the latter case, of having proceeded to their timely collection from the principals.

Article 3 Over-the-Counter Market Commission

1. Stock exchange operators and other financial intermediaries legally and statutorily authorized to carry out operations in the over-the-counter market will charge for the realization of these operations commissions freely fixed by them, however, for each operation, subject to a minimum value of 100,000.00 MT (one hundred thousand meticais) and a maximum value of 1.2 per mille of the value of the operation, determined in the terms of paragraph 5 of the previous article;
2. When, under the provisions of paragraph 2 of Article 72 of the Securities Market Regulations, securities admitted to quotation on the stock exchange are traded in the over-the-counter market, the commissions referred to in the previous paragraph applicable to these transactions will be increased to three times their value.
3. For each order received for the realization of operations in the over-the-counter market, but not executed, stock exchange operators and other financial intermediaries authorized to operate in this market may charge at the time of cancellation, revocation or expiration of the order, and even if the same is to be renewed, a commission with a maximum amount of 20,000.00 MT (twenty thousand meticais), or 50,000.00 MT (fifty thousand meticais) if the order concerns securities admitted to cotation on the stock exchange and negotiable in the over-the-counter market under the provisions of paragraph 2 of Article 72 of the Securities Market Regulations.

Maputo, 25 February 1999.