Stockbrokers have boosted the Rwanda Over The Counter Market by mobilising 33 transactions worth Frw280 million, a sign the market is picking up, a financial expert has said.

The remarks come shortly after some prospective investors asked the Capital Markets Advisory Council whether stockbrokers are really necessary on stock market.

Members of the CMAC however said, it is requirement for any investor to buy or sell securities listed on any stock exchange through a stockbroker.

The members appreciate the stockbroker’s roles saying they are involved in awareness campaigns, a move that has inculcated a saving culture into Rwandans.

"We are licensed by Capital Markets Advisory Council (CMAC) as stockbrokers. We trade portfolios and act as the market makers,” Patrick Nkulikiyinfura of CDH, a Rwandan company that provides brokerage services said.

Professionals

The law on trading of bonds requires stockbrokers to charge 0.125 per cent for a transaction not above Frw5 million. For the transactions above Frw5 million, the commission charged is negotiable.

On the trading of shares (equities), they charge 1.5 per cent for transactions not more than Frw100,000. But the fee is negotiable on transactions above Frw100,000.

To qualify as a stockbroker on Rwanda Over The Counter Market, CMAC requires the broker to have minimum education qualification of a college degree or have passed an exam approved by CMAC. There is also minimum capital of Frw10 million plus previous experience in this business.

"They are also required to have physical location and must be registered in Rwanda,” said Robert Marthu, the Executive Director of CMAC. He added that membership is renewed annually.

Ends