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Role of USE

The USE has a very important role to play through enabling companies to raise funds from both individual and institutional investors. These include:

  • Bringing companies and investors together.
    The exchange enables financial intermediaries to distribute company shares, bonds or financial products to retail and institutional investors through its trading system or platform connection with brokerage firms and banks.
  • Enables issuers (ie companies) to raise new capital.
    The Securities Exchange provides companies with the option to raise financing through Initial Public Offers (IPOs), bonus and rights issues and also private equity transactions. Companies thus secure patient capital which can be used to support companies for growth.
  • Facilitates the process of trading in securities by investors.
    Investors, through USE member broker firms, access the trading platform and invest in securities of different company.
  • Regulation
    The USE is the frontline regulator for the exchange, setting and enforcing listing and membership requirements and trading rules. The Capital Markets Authority supervises the USE in the performance of its regulatory duties.

Operations

The Uganda Securities Exchange operates through 3 market segments i.e:

1. The Main Investment Market Segment

The MIMS is the main market for established and large companies looking to raise funding. The eligibility criteria on this segment are stringent. Companies on this segment must have a minimum share capital of Ush. 1 billion and net assets of Ush. 2 billion. Examples of companies listed on this segment include Stanbic Bank, DFCU Group and more recently Umeme Limited.

The Main Investment Market Segment of the USE currently has 16 listed equities comprising of 8 Locally Listed equities;

BATU

UG0000000022

British American Tobacco Uganda

BOBU

UG0000000055

Bank of Baroda Uganda

DFCU

UG0000000147

Development Finance Company of Uganda Ltd

NVL

UG0000000162

New Vision Printing and Publishing Company Ltd

SBU

UG0000000386

Stanbic Bank Uganda

NIC

UG0000000758

National Insurance Corporation

UCL

UG0000000014

Uganda Clays Limited

UMEME

UG0000001145

Umeme Limited

It also has 8 Equity Securities which are cross listed from the Nairobi Securities Exchange (Kenya) as below:

EBL

KE0000000554

Equity Bank Limited

KCB

KE0000000315

Kenya Commercial Bank Group

EABL

KE0009081092

East African Breweries Limited

JHL

KE0000000273

Jubilee Holdings Limited

KA

KE0009081084

Kenya Airways

NMG

KE0000000380

Nation Media Group

CENT

KE0000000265

Centum Investment Company Ltd

UCHM

KE0000000489

Uchumi Supermarkets Limited

2. The Fixed Income Securities Market Segment

It was introduced as a platform for fixed income securities. It aims at providing a separate independent market for companies wishing to raise financing through issuance and listing of fixed income securities such as treasury bonds, corporate bonds, preference shares and debenture stocks. It also provides the market for investors wishing to trade the above securities at the exchange. The segment also lists other short-term financial instruments such as treasury bills and commercial papers.

The Fixed Income Market Segment currently 6 corporate bonds and 39 Government of Uganda Treasury Bonds listed.

3. The Growth Enterprises Market Segment

The Uganda Securities Exchange launched the Growth Enterprise Market Segment (GEMS) in recognition of the fundamental role of “Small and Medium Sized Enterprises” (SMEs) as a major driver of our Uganda’s economy and ultimately the overall financial system of Uganda. The GEMS platform enables SMEs to raise substantial initial and ongoing capital, while benefiting from increased profile and liquidity within a regulatory environment designed specifically to meet their needs. The eligibility criteria for raising financing through the GEMS are significantly less stringent compared to those on the main investment market segment above.